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European Insurance and Occupational Pensions Authority
 

3532

Q&A

Question ID: 3532

Regulation Reference: Guidelines on the Forward looking assessment of own risks

Topic: Own Risk and Solvency Assessment (ORSA)

Status: Rejected

Date of submission: 22 Mar 2026

Question

The technological innovation and more specifically the expansion of AI in insurance business models, generates new risk fields. Given that the carbon emissions associated with a very simple AI search or query are significantly higher than traditional, non-AI searches due to immense electricity, often sourced from fossil fuels, to power data centers and the additional concequences to water overconsuming for cooling of servers together with the increased hardware and electronic waste for materials' upgrading reasons, result in an environmental burden. How to balance AI-related risks with environmental sustainability in a landscape of opportunities that the AI technology formulates while regulated by strict rules over environment protection?

Background of the question

Environmental risks generated by AI opportunities

EIOPA answer

This question has been rejected because the question is not clear and it has not sufficiently identified a provision of the Solvency II framework which creates uncertainty for which an explanation is merited regarding their practical implementation or application.