The insurance sector has embraced AI at speed, deploying it across underwriting, claims and customer engagement. Yet regulation is struggling to keep pace with the technology’s rapid evolution. Current frameworks were not designed with self-learning systems or generative models in mind, leaving gaps around accountability, transparency and bias. For now, regulators are watching closely, with guidance rather than enforcement. But history tells us that regulatory intervention often comes after the first high-profile failures or consumer harms. When that moment arrives, we can expect tighter controls on explainability, governance and oversight of AI. For the sector, the message is clear: use this breathing space to build robust controls now, before regulators mandate them.