What should I watch out for with AI in the insurance field?

AI systems for underwriting, premium calculation and claims handling fall under the EU AI Act (high risk for life insurance and health-related policies): human oversight, audit logs and explainability are mandatory. The DNB requires insurers to inform customers when AI has decision-making authority. Insurance data contains health and financial information — special category personal data under the GDPR. Only use solutions with a data processing agreement, EU hosting and explainable AI (XAI).

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Microsoft

How safe is Copilot for the insurance sector?

GDPR profile for insuranceCaution

Copilot has a concrete GDPR concern. The Claude models within Copilot officially fall outside the EU Data Boundary. If you want to process strictly EU-only, exclude the Claude models in the admin panel. Weigh this heavily before deploying it in the insurance sector.

Where does Copilot stand in the insurance sector?

Shared spot 22 of 28 options for insurance (professional tools and general assistants) on GDPR profile. 7 options, like Copilot profile, carry a caution. Each tile is an option we track for this field; click for the check.

Strong7

C

Good5

Limited7

Unknown2

Caution7

Published safeguards

✓EU hosting possibleYes

✓No training on your data (business)Yes

–Self-hostable (on-premise)Not known

Microsoft 365 Copilot (business) falls under the EU Data Boundary and does not train on tenant data. Consumer Copilot does train by default, with an opt-out.

How to use Copilot safely

Use the business variant and sign a data processing agreement (DPA).
Do not enter unnecessary personal data into prompts; anonymise where possible.
Enable EU data residency where the provider offers it.
Keep a professional in the loop: AI systems for underwriting, premium calculation and claims handling fall under the EU AI Act (high risk for life insurance and health-related policies): human oversight, audit logs and explainability are mandatory.

Stronger or equally strong in the insurance sector

OnesuranceOnesurance B.V. (Netherlands)

weDAT (FastTrackAI)VWE Automotive (Heerhugowaard, NL)CClaimHandlerNedDev B.V. (The Hague, Netherlands)

Blinqx Risicomanagement (Finly)Blinqx Verzekering & Hypotheek (Gouda, Netherlands)

InfermedicaInfermedica (Poland/EU)

Latest developments

19 October 2026Claude models in Copilot Cowork process data outside the EU Data Boundary

Copilot Cowork relies on Anthropic's Claude models for demanding tasks. Because that processing takes place outside the EU Data Boundary, Anthropic is switched off by default in European Microsoft 365 tenants. Anyone who turns it on has data processed outside the EU Data Boundary; at the same time, pay-per-use (Copilot Credits) is coming, in the Netherlands postponed until 1 December 2026. source

18 September 2026Plugin4Shell: GitHub Copilot still unpatched (zero-click RCE via plugin updates)

Research lab Air Security publicly disclosed Plugin4Shell on 18 September 2026: a zero-click RCE in the plugin mechanism of AI coding agents. The agent pins a plugin to a commit hash but does not verify that the retrieved code belongs to that hash; whoever controls or takes over the upstream repository can thus have code executed during the automatic background update, without any action by the user. GitHub Copilot had no patch at the time of publication, although the report was made to all vendors in June 2026. GDPR relevance: plugins run with the developer's rights (source code, cloud credentials, SSH keys, internal repositories, production systems). If you process personal data on or via development machines, this directly affects your security measures under Art. 32 GDPR. Measures: inventory installed plugins and the owners of those repositories, disable automatic plugin updates where possible, and restrict credentials on development machines. Note: this concerns the GitHub Copilot coding agent, not Microsoft 365 Copilot. source

15 April 2026Caveats regarding the EU Data Boundary

The Claude models within Microsoft 365 Copilot fall outside the EU Data Boundary; 'flex routing' can route outside the EU during peak load and can be switched off by administrators. source

Questions

How safe is Copilot for the insurance sector?: Copilot has a concrete GDPR concern. The Claude models within Copilot officially fall outside the EU Data Boundary. If you want to process strictly EU-only, exclude the Claude models in the admin panel. Weigh this carefully before you deploy it in the insurance sector. There is a concrete GDPR concern, read the details on the page.
Does Copilot train on my data?: Microsoft 365 Copilot (business) falls under the EU Data Boundary and does not train on tenant data. Consumer Copilot does train by default, with an opt-out.
What should I watch out for with AI in the insurance field?: AI systems for underwriting, premium calculation and claims handling fall under the EU AI Act (high risk for life insurance and health-related policies): human oversight, audit logs and explainability are mandatory. The DNB requires insurers to inform customers when AI has decision-making authority. Insurance data contains health and financial information, special category personal data under the GDPR. Only use solutions with a data processing agreement, EU hosting and explainable AI (XAI).

Source documents

learn.microsoft.com learn.microsoft.com

Everything about Copilot Best AI for the insurance sector

Summarised by the editorial team from provider documentation · not legal advice

Last checked: 15 October 2026 · How we check

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