AI technologies have assisted in driving the efficiency of consumer insurance by appropriately classifying consumers into risk groups while tackling adverse selection and reducing moral hazards. Notably, these AI systems are supported by the collection of big data through black box technologies such as telematic devices fitted within motor vehicles, health tracking devices and home-based sensors which can collect live data. However, complaints arising out of the insurer’s technology, due to alleged incorrect outputs, resulting into disputable premium prices, before competent authorities such as the UK’s Financial Ombudsman, have not resulted into the disclosure of the algorithmic logic with the consumer. This presentation would discuss some of the challenges in creating AI transparency guidelines in law. Additionally, it would look at how the European Union is looking at these issues considering the European Union (EU) AI Act of 2025.

About the Author:

Shatrunjay Bose is currently a PhD candidate at the University of Southampton, UK. His candidature at the University is funded through the Southampton Law School Studentship. At the University, Shatrunjay has been a tutor for a module titled as ‘Engineering Management and Law’ wherein he taught the fundamentals of contract, employment and patent law to first year engineering students. Currently, he is a tutor for contract law teaching first year law students. Prior to starting his PhD, he has worked at law firms such as Herbert Smith Freehills, London office as a Legal Analyst (foreign qualified lawyer).