In this The AI Journal article, Brenda Leong and Jey Kumarasamy break down the current landscape of artificial intelligence governance in insurance operations, particularly in underwriting, claims handling, fraud detection and customer engagement. In terms of policy development, they explain that the National Association of Insurance Commissioners’ (NAIC) Model Bulletin on the Use of Artificial Intelligence Systems by Insurers, finalized in late 2023, provides a structured framework for states and insurers to promote responsible AI governance. Meanwhile, states including California, Colorado, and New York have their own complementary regulatory models – examples of the importance of human oversight in the AI process.
“With frameworks like the NAIC Model Bulletin and states leading the charge with tailored rules, the future of AI in insurance will depend not just on technical performance but on public trust, ethical design and a demonstrable commitment to fairness,” they wrote.
