Client Alert July 20, 2023
On Monday, July 17, 2023, the National Association of Insurance Commissioners’ (“NAIC”) Innovation, Cybersecurity, and Technology (H) Committee (“H Committee”) exposed its Draft Model Bulletin on the Use of Algorithms, Predictive Models, and Artificial Intelligence Systems by Insurers (the “Bulletin”). The draft comes as part of H Committee’s 2023 Adopted Charge to consider and coordinate the development of regulatory guidance and examination standards related to the use of big data and artificial intelligence (“AI”) in the business of insurance.
As we have previously reported, on May 26, 2023 the Colorado Division of Insurance released a revised draft Proposed Algorithm and Predictive Model Governance Regulation focused on life insurers. Both of these documents take a similar approach by looking to establish a governance and risk-management framework for the use of AI systems.
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