Scott Kosnoff Discusses AI Governance Developments Impacting the Insurance Industry in Law360 Midyear Report

Insurance partner and leader of Faegre Drinker’s AI-X team Scott Kosnoff spoke with Law360 about significant AI governance developments in the insurance industry from the first half of 2026.

In the article, Law360 highlights the National Association of Insurance Commissioners’ (NAIC) AI Evaluation Tool pilot program, which was launched in 12 states this year, aiming to help regulators assess insurers’ use of AI models and evaluate how governance practices can mitigate risk.

As regulators place greater emphasis on documenting AI governance practices, Kosnoff noted, "You actually have to have documentation that shows that you not only talk the talk, but that you walk the walk.”

Kosnoff explained that the AI pilot indicates that regulators have broadened the lens through which they view insurer AI risks from consumer protection to monitoring potentially adverse impacts to insurers themselves. He observed the growing importance of continually monitoring to ensure AI tools are working as intended and that those involved in the process avoid prohibited uses.