News & Analysis as of

Risk Management NAIC

McDermott Will & Emery

Insurers: Climate Risk Disclosures Today, Scenario Testing Tomorrow

For more than a decade US insurance regulators have required certain insurers to file climate risk disclosure reports. In recent years, financial regulators in Europe have begun climate change scenario testing while still...more

Mintz

Congressional Democrats Press For Integration of Climate-Related Financial Risks in Insurance Regulation

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On August 12, 2024, three Congressional Democrats (Casten (D-IL); Waters (D-CA); and Senator Whitehouse (D-RI)) sent a letter to the National Association of Insurance Commissioners (NAIC), inquiring as to “the status of the...more

Quarles & Brady LLP

States Adopt NAIC Model Bulletin on Insurers’ Use of AI

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State regulators are taking action on the use of artificial intelligence in insurance. To date, nearly a dozen states have adopted some form of the National Association of Insurance Commissioners (NAIC) Model Bulletin on the...more

McDermott Will & Emery

State Regulators Address Insurers’ Use of AI: 11 States Adopt NAIC Model Bulletin

In December 2023, the National Association of Insurance Commissioners (NAIC) adopted a Model Bulletin on the Use of Artificial Intelligence (AI) Systems by Insurers. The model bulletin reminds insurance carriers that they...more

Eversheds Sutherland (US) LLP

Connecticut Insurance Department adopts NAIC model bulletin on AI

On February 26, 2024, the Connecticut Insurance Department (the CID) adopted Bulletin No. MC-25 on the “Use of Artificial Intelligence Systems in Insurance” (Connecticut Bulletin). This Connecticut Bulletin is similar to the...more

Locke Lord LLP

Alaska Is First State to Adopt the NAIC ‎AI Model Bulletin by Issuing Bulletin B 24-01 ‎Governing ‎Licensed Insurers’ Use of AI

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On February 1, 2024, Alaska became the first state to adopt the NAIC Model Bulletin on the Use of Artificial Intelligence Systems by Insurers by issuing a new Bulletin (“Bulletin B 24-01”). Bulletin B 24-01 is effective...more

Locke Lord LLP

Artificial Intelligence Regulation in the ‎Insurance Industry – 2023 a Year in Review

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2023 has been a very productive year for regulators advancing their efforts to understand new technologies and consider whether and how to regulate the rapidly developing technologies, including artificial intelligence,...more

Paul Hastings LLP

An Eye on Insurance: Recent Developments in Insurance Regulation

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The last months of 2023 capped off another major year for insurance regulation, with state insurance regulators and the National Association of Insurance Commissioners undertaking a number of initiatives that will affect the...more

BCLP

The Future of Insurance - Colorado’s New ECDIS and AI Model Regulations

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On September 21, 2023, the Colorado Division of Insurance adopted a Final Regulation implementing S.B. 21-169, the 2021 law governing Colorado-licensed insurers’ use of external consumer data and information sources (ECDIS),...more

Carlton Fields

NAIC Innovation, Cybersecurity, and Technology (H) Committee Gets in on the Action

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On July 17, the Innovation, Cybersecurity, and Technology (H) Committee of the National Association of Insurance Commissioners released its exposure draft of the NAIC’s model bulletin on insurers’ use of algorithms,...more

Skadden, Arps, Slate, Meagher & Flom LLP

AI Insights: NAIC Releases Draft Model Bulletin Regarding Use of AI by Insurers

In July, the Innovation, Cybersecurity and Technology Committee of the National Association of Insurance Commissioners (NAIC) released an exposure draft of its model bulletin titled “Use of Algorithms, Predictive Models, and...more

Eversheds Sutherland (US) LLP

NAIC releases highly-anticipated draft model bulletin on artificial intelligence systems used by insurers

On July 17, 2023, the Innovation, Cybersecurity and Technology (H) Committee of the National Association of Insurance Commissioners (NAIC) released for comment a highly anticipated model bulletin (Model Bulletin) on...more

Faegre Drinker Biddle & Reath LLP

Insurance Privacy, Cybersecurity and Data Strategy: Mid-2022 Updates

The first half of 2022 brought plenty of activity in the data privacy and cybersecurity space, much of which is applicable to or of interest to the insurance industry. We outline some of this activity below. Revisions to...more

Eversheds Sutherland (US) LLP

The Task Force on Climate-related Financial Disclosures: Emerging climate change disclosure principles for the insurance industry

As concerns about the ecological and financial impacts of climate change have grown in recent years, so has the interest of insurance regulators in the exposure of the insurance industry to the risks raised by climate change...more

Eversheds Sutherland (US) LLP

The Task Force on Climate-related Financial Disclosures: Emerging climate change disclosure principles for the insurance industry

As concerns about the ecological and financial impacts of climate change have grown in recent years, so has the interest of insurance regulators in the exposure of the insurance industry to the risks raised by climate change...more

BCLP

NYDFS Outlines Expectations for Climate Change Risk Management By Domestic Insurers

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On November 15, 2021, the New York Department of Financial Services (NYDFS) finalized guidance, originally proposed in March 2021, on how New York-domestic insurers should manage climate change risk. See, Guidance for New...more

McDermott Will & Emery

Climate Change and State Insurance Regulation: What Could Change After President Biden’s May 20 Executive Order

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US President Joe Biden’s May 20, 2021, executive order laid out an aggressive, whole-of-government plan to address climate change risk, including a set of directives that will have a major impact on the operations of the...more

Hinshaw & Culbertson - Privacy, Cyber & AI...

Maine Enacts NAIC-Inspired Cybersecurity Law

Maine has become the latest state to adopt a version of the National Association of Insurance Commissioners (NAIC) model cybersecurity law. Signed into law on March 17, 2021, the Maine Insurance Data Security Act establishes...more

Eversheds Sutherland (US) LLP

New York State Department of Financial Services releases proposed guidance for New York insurers on managing climate risks

Last week (March 25, 2021), the New York State Department of Financial Services (NYDFS) released for public comment proposed guidance for New York domestic insurers on managing financial risks from climate change (the...more

Faegre Drinker Biddle & Reath LLP

Insurance Industry Cybersecurity and COVID-19: The Importance of Risk Assessments

As companies seek to adapt to the worsening effects of the COVID-19 pandemic, security experts, as well as government agencies, including the FBI, are sounding the alarm on a drastic increase in the amount of cybersecurity...more

Kramer Levin Naftalis & Frankel LLP

NAIC, Industry Wrangle Over Key Aspects of Insurer Capital, Solvency Regulation

Insurance carriers will find the following topics, recently discussed at the National Association of Insurance Commissioners (NAIC), relevant to capital management, financial risk, solvency and similar “prudential” issues,...more

Ballard Spahr LLP

South Carolina Enacts First Insurance Data Security Act

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South Carolina has become the first state to enact a version of the Insurance Data Security Model Law, which was drafted by the National Association of Insurance Commissioners (NAIC) in 2017. Governor Henry McMaster signed...more

Carlton Fields

Insurers Keep Providing Corporate Governance Disclosures Without Complaint—Yet

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Following the financial crisis, the NAIC undertook a solvency modernization initiative (SMI) to update insurance regulators on insurance companies’ regulatory frameworks. One part of the SMI, meant to keep regulators informed...more

Locke Lord LLP

A Closer Look at the NAIC Insurance Data Security Model Law

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Following New York’s lead after the Department of Financial Services (the NYDFS) promulgated its Cybersecurity Regulation, in October 2017 the NAIC adopted its Insurance Data Security Model Law (the NAIC Model) to establish...more

Mintz - Privacy & Cybersecurity Viewpoints

Insurance Commissions Approve Data Security Model Law

The National Association of Insurance Commissioners (NAIC) has approved its draft of the Insurance Data Security Model Law (Model Law) via a meeting of its Executive and Plenary Committees. This important development follows...more

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