Updates on Regulation of Artificial Intelligence in Insurance

Insurance regulators continue to actively develop regulations and guidance on the use of artificial intelligence (“AI”) in insurance and we highlight in this alert three recent developments in this area. The Colorado Division of Insurance (the “Division”) released a draft AI testing regulation on September 28, 2023 for life insurance underwriting to compliment the AI governance regulation which it adopted in September 2023. The National Association of Insurance Commissioners (the “NAIC”) also released on October 13, 2023 an updated draft AI model bulletin for all insurers licensed in a state that issues the model bulletin. In addition, it has been reported that the New York Department of Financial Services (“DFS”) intends to release a new Circular Letter, providing updated guidance for insurers licensed in New York on the use of AI in underwriting and pricing.

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