Peter Kerstens: A cloud of regulation

OPINION by Peter Kerstens, Advisor for Digitalisation, Technological Innovation and Cybersecurity at DG FISMA, European Commission

Let's be honest: no one gets into insurance for the adrenaline. The thrill of spreadsheets, the quiet rustle of compliance manuals - these are the humble pleasures of the trade.

Lately, the world of measured risk and actuarial prudence is hit by new excitement: the European Union's fast-unfurling digital finance strategy.

The EU, never one to under-regulate an opportunity, has in recent years been pushing out digital finance legislation like a bakery on deadline. From the Digital Operational Resilience Act (DORA) to the Markets in Crypto-Assets Regulation (MiCA), from the AI Act to the Data and Financial Data (FIDA) Act, the EU is laying down a vision of a digitised, interconnected financial system. Insurance is very much in the splash zone. And that is a good thing.

In fact, for those in the risk business, these changes aren't just background noise. They're reshaping the very terrain the industry is supposed to navigate. So, let's take a short tour of this brave new regulatory world and what it means when your business model is built on calculating - and managing - risk.

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