How do you keep up with regulatory trends regarding Artificial Intelligence and Privacy Protections? One way to keep up with regulatory trends in Artificial Intelligence (AI) is to follow the work of the National Association of Insurance Commissioners (NAIC) committees and working groups. There are several committees working on procedures to monitor and regulate the insurance industry’s use of artificial intelligence. The NAIC Innovation, Cybersecurity, and
Technology (H) Committee coordinates these activities and provides a forum for state insurance regulators to learn and have discussions regarding cybersecurity, innovation, data security and privacy protections, and emerging technology issues.
In July, the committee issued a draft NAIC Model Bulletin: Use of Algorithms, Predictive Models, and Artificial Intelligence Systems by Insurers. The bulletin was constructed as regulatory guidance and not as a model law or model regulation, as the regulators decided that existing state laws already apply to the decisions made by insurers using AI systems. The bulletin guides insurers on how to govern their development and use of AI systems that impact consumers, and it also offers guidance on what information and documentation insurers should provide to regulators. The Committee requested comments and posted the comments on the committee webpage on the NAIC website.
The Privacy Protections (H) Working Group is drafting a new Insurance Consumer Privacy Protections Model Law (#674). This is a major rewrite of existing models. The current draft is on the working group’s website along with extensive comments from affected parties.
AICP members can follow the work of the committees and working groups on the NAIC website: https://content.naic.org/
Regulatory Coordinator Consultant
Interstate Insurance Product Regulation Compact