PriyaPatel
TLDR: EU AI Act may block smaller insurtechs from market entry
Smaller insurtechs in the artificial intelligence sector may face challenges entering the market due to the EU AI Act. The regulation will place additional regulatory burdens on technology providers, potentially hindering their ability to compete with established entities in the insurance industry.
According to Sixfold CEO Alex Schmelkin, the upcoming EU AI Act will subject smaller insurtechs to increased regulatory oversight, which could prevent them from establishing a foothold in the market. This regulation is expected to place a heavier burden on technology providers rather than just regulated entities like insurers.
Insurtech companies will need to navigate these new regulatory requirements in order to remain competitive and compliant with the EU AI Act. The impact of this legislation on the insurtech sector could shape the future landscape of the industry and determine which players are able to thrive in the evolving digital insurance market.
