NAIC Readies AI Evaluation Tool for 2027 Launch
The National Association of Insurance Commissioners is developing a standardized framework for state regulators to examine how insurers use artificial intelligence. The AI Systems Evaluation Tool will launch in 2027 after a revised version is published this spring and finalized for public comment in September.
Scott White, NAIC president and Virginia's insurance commissioner, said regulators lack current data on how the industry deploys AI. "We've done surveys, but they're not that current," White said at a March 9 meeting of the American Academy of Actuaries in Washington, D.C. "This will allow us to go straight into the department and ask questions to get a better understanding."
The tool will give insurers visibility into the consistent, structured method regulators will use to examine their AI systems. Four additional states have committed to adopting the tool since December, bringing the total to 14.
The NAIC presented an initial version of the tool to a subcommittee in December and revised it based on regulator feedback. The organization plans to roll out the updated version in spring or summer.
Focus on Predictive Models
Evaluating AI-driven predictive rate models represents new terrain for insurance examiners. White said new capabilities built into the tool will make this evaluation easier.
Virginia is moving ahead independently on this front. The state's new insurance modernization hub will examine insurers' AI use and advise the State Corporation Commission's Bureau of Insurance. The hub includes data analysts, cybersecurity experts, policy advisors, and strategic planners.
Homeowners Data Call Coming
The NAIC is preparing a new data call for homeowners insurance this year. The last collection occurred in 2024. The Homeowners Market Data Call Task Force will present its plans at the NAIC's spring meeting, set for March 22-25 in San Diego.
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