Curated Insight: The Use of AI in Insurance (NAIC)

This month’s spotlight is on NAIC’s Model Bulletin on the Use of Artificial Intelligence Systems by Insurers.

This guidance is making headlines for continued adoption across the U.S. (at least three new states in 2025).

Why it matters to those of us outside the U.S.

The principles - transparency, fairness, and accountability - are showing up in policy discussions outside the U.S.

The document is simple and focuses on practical steps.

It is useful for insurers looking to get ahead of local regulation or align with international standards.

My key takeaways

• It's short: The bulletin is short - 9 pages - not that common among such documents.
• It's easy to read: concise and written in plain language, again not that common.
• Document: how AI is used, across the lifecycle, including underwriting, claims, fraud, etc.
• Governance: prioritising transparency, fairness and accountability.
• Risk management: at each stage of the AI lifecycle, including how models meet their objectives.
• Vendors/third parties: due diligence and audits, across both third-party data and systems.
• Customers: provide notice to impacted consumers about systems in use, with access to information.
  
  

At the risk of this article being longer than the document, let's stop there.

In short, the bulletin is well worth a read. You can find it here. 

Disclaimer: The information in this article does not constitute legal advice. It may not be relevant to your circumstances. It was written for specific algorithmic contexts within banks and insurance companies, may not apply to other contexts, and may not be relevant to other types of organisations.