Reporting Developments Affecting the Insurance and Reinsurance Industries


How Will the NAIC Regulate Third-Party Data and Modeling Vendors?‎

Over the weekend, the NAIC’s Third-Party Data and Models (H) Task Force released for a 30-‎day comment period (the comment period expires Monday May 6, 2024) a proposed work plan ‎to develop a framework for the regulatory oversight of “third-party data and model vendors and ‎their products and services,” including artificial intelligence. It is anticipated the process of ‎developing this regulatory “framework” will be a two-year process. The spring and summer of ‎‎2024 will be a fact gathering period while over the fall the task force plans to discuss general ‎ideas for the framework while ultimately finalizing a general concept at the November Fall ‎National Meeting in Denver, Colorado. Drafting is slated to begin in 2025. It is contemplated ‎that the anticipated framework “may require new or modification of adopted model laws or ‎regulations in 2025.” ‎

Read More

NAIC Accelerated Underwriting Working Group Racing Ahead with ‎Regulatory Guidance

The Accelerated Underwriting (A) Working Group of the National Association of Insurance Commissioners (“NAIC”) met on April 3, 2024, to discuss its workplan for finalizing proposed regulatory guidance for approval at the Summer National Meeting in August. A drafting group consisting of regulator representatives will spend the next few weeks revising the prior draft guidance in light of public comments previously received and to reflect the results of the Life AI/ML Survey and the AI Model Bulletin released and adopted respectively at last year’s Fall National Meeting in December. Procedurally, it is anticipated that the working group will expose version 2.0 of the draft guidance near the end of April for a 30-day public comment period expiring in May. This will be followed by a version 3.0 in June exposed for an additional open comment period followed by final public exposure in July and approval by the working group in August such that the Life & Annuities (A) Committee may adopt the final version at the Summer National Meeting in August.

Read More

Colorado Division of Insurance Holds Second Health Insurance Stakeholder Meeting for ‎Implementing AI Requirements

On Tuesday, April 2, 2024, the Colorado Division of Insurance (“Division”) held its second Unfair Discrimination in Insurance Practices – Health Insurance Stakeholder meeting where the Division discussed efforts to develop regulations addressing governance and risk management framework requirements for health insurers’ use of external consumer data and information sources, algorithms, and predicative models. The meeting presented an opportunity for stakeholders to provide comments and insights with respect to their positions on how the Division should proceed.

Read More

NAIC Cybersecurity Working Group Adds Cyber Coverage to its Focus

Over the last few years, the work of the Cybersecurity (H) Working Group of the National Association of Insurance Commissioners (“NAIC”) has focused on cybersecurity risk to insurance licensees such as insurance carriers, insurance intermediaries, and third-party service providers to insurance licensees. This year the working group’s work will consist of two parallel tracks: the traditional cybersecurity risk, and a new emphasis on cyber insurance coverage. In her discussion of proposed topics for the 2024 work plan, the Chair highlighted cyber coverage questions specific to ransomware, D&O, and whether or not cyber insurance products are providing the coverage that policyholders expect.

Read More

Rhode Island Adopts NAIC AI Model Bulletin

In recent weeks a number of states have adopted the Model Bulletin: Use of Artificial Intelligence Systems by Insurers (the “Model Bulletin”) adopted last December by the National Association of Insurance Commissioners (“NAIC”). Alaska[1] was the first state to adopt the Model Bulletin back in February, followed by Connecticut[2] and New Hampshire,[3] with Illinois,[4] Vermont,[5] and Rhode Island[6] opting to adopt the Model Bulletin earlier this month. The word on the grapevine is that Maryland and Pennsylvania will be next.

Read More

How Will the NAIC Regulate Third-Party Data and Models?‎

The National Association of Insurance Commissioners (“NAIC”) has created a new Third-Party ‎Data and Models (H) Task Force which is charged with developing and proposing a framework ‎for the regulatory oversight of third-party data and predictive models. At the Spring National ‎Meeting in Phoenix, the Chair of this task force, Colorado Insurance Commissioner Michael ‎Conway, informed those in attendance that the task force anticipates a two-year workplan.‎

Read More

NAIC Technology Groups Ramping Up Before the Spring National ‎Meeting

The National Association of Insurance Commissioners (“NAIC”) will convene next month in Phoenix, Arizona, for its Spring National Meeting. The Innovation, Cybersecurity, and Technology (H) Committee (the “H Committee”) and its working groups are ratcheting up their work in anticipation of next month’s national meeting. Earlier this week the NAIC announced that issues pertaining to the use of AI by insurers and cyber risk are among its 2024 Strategic Priorities while two H Committee working groups exposed separate technology related deliverables for public comment periods closing next month before the Spring National Meeting.

Read More




Email the Editor

Click here to Email the Editor

Locke Lord LLP

For the latest information about our Firm visit