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This position paper outlines Insurance Europe’s feedback on the European Commission’s Digital Omnibus initiative, which seeks to streamline the complex regulatory environment for the insurance sector. The organization advocates for reducing administrative burdens by harmonizing rules across artificial intelligence, data protection, and cybersecurity. Key recommendations include delaying specific AI Act obligations to ensure technical readiness and clarifying GDPR definitions to foster innovation in automated decision-making. Additionally, the sources highlight the importance of a Single-Entry Point for reporting cyber incidents and the potential benefits of a European Business Wallet for secure digital authentication. Ultimately, the federation seeks a more coherent legislative framework that balances robust consumer protection with the operational flexibility needed for insurers to remain competitive.
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The paper presents a framework for individual claims reserving based on the projection-to-ultimate (PtU) method as an alternative to the traditional chain-ladder approach. It describes how reserving can shift from aggregate loss triangles to claim-level modeling by directly estimating ultimate claim costs. The approach is presented as compatible with classical actuarial structures while enabling the use of stochastic covariates and machine learning models, including neural networks and transformers. The authors emphasize decomposing reserves into Reported But Not Settled (RBNS) and Incurred But Not Reported (IBNR) components to maintain consistent claim cohorts. Case studies suggest that linear regression can perform robustly in individual-claim settings.
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This report examines the escalating systemic risks within the European and global financial landscapes between late 2025 and early 2026. Cyber and hybrid threats are identified as a primary concern, exacerbated by the sector's heavy reliance on a small number of critical ICT third-party providers like AWS. Market volatility is further fueled by stretched equity valuations in the technology and AI sectors, alongside structural vulnerabilities exposed by a major crypto-asset flash crash in October 2025. Additionally, the reports highlight macroeconomic uncertainties such as rising public debt, shifting trade policies, and the lack of transparency in the rapidly expanding private credit market. To counter these instabilities, authorities are focusing on regulatory frameworks like the Digital Operational Resilience Act (DORA) to strengthen oversight and mitigate potential contagion. Efforts to improve operational resilience remain central to protecting investors and maintaining orderly markets amidst these diverse financial and technological pressures.