July 01, 2020

NAIC's Artificial Intelligence Working Group Adopts Principles for AI

On June 30, the National Association of Insurance Commissioners' (NAIC) Artificial Intelligence Working Group approved principles that call on insurers and others using artificial intelligence (AI) to take proactive steps to avoid proxy discrimination against protected classes. In the run-up to the vote, Commissioner Jon Godfread (Chair – ND) delivered a passionate statement indicating that the nation’s insurance regulators are committed to addressing discriminatory practices while preserving the industry’s ability to engage in appropriate underwriting. After extensive discussion, 15 of the states participating in the call voted in favor of the principles, and one abstained.

The AI principles will be considered by the NAIC’s Innovation and Technology Task Force on July 23 and, if approved, by the full NAIC membership during the virtual summer national meeting. (The national meeting also will feature a special session on race and diversity in the insurance sector.) While the principles will not have the effect of law, they are expected to serve as a road map for future regulatory workstreams. Be prepared.

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