On March 22, 2023, the Big Data and Artificial Intelligence (H) Working Group ("BDAI Working Group"), a subgroup of the Innovation, Cybersecurity, and Technology (H) Committee ("H Committee"), met at the Spring 2023 US National Meeting of the National Association of Insurance Commissioners ("NAIC"). The meeting covered the following matters.
- Updates on Artificial Intelligence/Machine Learning Surveys
The BDAI Working Group reminded attendees that the NAIC Staff Report, detailing findings from the Private Passenger Auto Artificial Intelligence/Machine Learning ("AI/ML") survey, has been released and is publicly available.
The BDAI Working Group also reported that data collection in connection with the home insurance AI/ML survey was primarily completed. Insurance companies had until December 15, 2022 to file their responses to the survey. As a reminder, 10 states (Connecticut, Illinois, Iowa, Louisiana, Nevada, North Dakota, Pennsylvania, Rhode Island, Vermont and Wisconsin) issued a data call request to 194 insurance companies to gain a better understanding of the use of big data and AI/ML by insurance companies, and what governance and risk management controls related to home insurance such companies are putting in place.1 As of March 1, 2023, eight companies had not provided responses, and had until March 24, 2023 to do so.
Finally, the BDAI Working Group is moving ahead with coordinating the life insurance AI/ML survey, which is intended to collect information on how life insurance companies are deploying AI/ML technologies in pricing and underwriting, marketing, and loss prevention. The survey will be issued to life insurance companies with more than $250 million in premiums on individual policies in 2021, term writers that have issued policies on more than 10,000 lives, and specifically selected insurtech companies. An informational letter regarding the survey was distributed at the end of March, with a formal examination call letter to be issued at the end of April, and survey responses are due by the end of May.
- Comments on the Model and Data Regulatory Questions
The BDAI Working Group also heard comments regarding the exposed draft of the Model and Data Regulatory Questions, which are intended to be used by insurance regulators to ask questions about models and data used by insurance companies.
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Footnote
1 For additional background on the BDAI Working Group's AI/ML surveys, view our previous Legal Update "US NAIC Fall 2022 National Meeting Highlights: Big Data and Artificial Intelligence (H) Working Group."
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