Prudential Reliability of Large Language Models in Reinsurance: Governance, Assurance, and Capital Efficiency
Published 11 Nov 2025 ยท arXiv
Key Points
- Five-pillar LLM reliability framework for reinsurance: governance, data lineage, assurance, resilience, regulatory alignment
- Translates Solvency II, SR 11-7 supervisory expectations into measurable lifecycle controls
- Incorporates EIOPA (2025), NAIC (2023), IAIS (2024) guidance
Implications
Reinsurers need structured approach to AI governance meeting multiple regulatory frameworks simultaneously.
Action Required
Implement comprehensive AI reliability controls before deploying LLMs in reinsurance operations.
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