⚠️ AI Integration Increases Mis-Selling Risks for Asian Insurers

• Strategic Shift: Regional insurers are leveraging AI to shift from traditional product-led sales to personalized, risk-based coverage recommendations, helping consumers identify critical protection gaps. • Market Scope: High growth potential observed across Asia, where 700M–750M new financial consumers are transitioning from basic savings into wealth and protection products. • Conduct & Compliance Risks: Broader deployment of automated sales algorithms raises mis-selling risks. Regulatory accountability strictly remains with the insurers, regardless of algorithmic execution. • Key Controls: Effective deployment requires robust governance, data privacy safeguards, continuous algorithm testing, and integrating AI within existing risk and compliance frameworks.