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Expect Focus - Volume II, May 2025

Builder of Investment Models Deviates From Blueprints Employee’s Rogue Remodeling Costs Builder Plenty - The SEC’s recent order instituting administrative and cease-and-desist proceedings (OIP) against registered...more

States Build the Next Mile of Artificial Intelligence Regulation

Since the start of 2025, the following states have added to the roadwork on artificial intelligence regulation in insurance by implementing the NAIC’s model bulletin on the use of AI systems by insurers...more

NAIC Big Data Working Group Continues Building a Regulatory Structure

During the NAIC Spring National Meeting, the Big Data and Artificial Intelligence (H) Working Group reviewed its blueprint to build an overarching regulatory edifice to oversee insurers’ use of artificial intelligence...more

NAIC Still Juggling Multiple AI and Machine Learning Initiatives

The many balls that the various National Association of Insurance Commissioners groups currently have in the air focusing on life insurers’ use of artificial intelligence and machine learning were reflected in the reports...more

A Bird's-Eye View of the Current Standings of AI Guidance and Requirements by States

Since the 2023 adoption by the National Association of Insurance Commissioners of its model bulletin on the use of AI systems by insurers, states have been adopting the model bulletin or draft requirements of their own. Below...more

Cybersecurity and AI Certification

A "time cut" is a ruling within cycling to ensure that riders keep pace. Similarly, regulators have placed time cuts, or deadlines, for insurers to certify compliance with cybersecurity regulations. Some of the time cuts are...more

NAIC Groups Carve Up the Mountain at the Winter Meeting

After strapping on their skis and riding up the lifts, the NAIC groups reported to their events. The results of the events of note for life insurers are as follows...more

Current Standings of AI Guidance and Requirements by State

States have been off to the races to place in the artificial intelligence insurance regulatory Grand Prix. The NAIC adopted the Model Bulletin on the Use of AI Systems by Insurers, which some states have drafted on to adopt...more

NAIC H Committee Continues as Ringmaster Coordinating Numerous Initiatives

Under the leadership of Maryland Insurance Commissioner Kathleen Birrane, in 2023 the Innovation, Cybersecurity, and Technology (H) Committee of the National Association of Insurance Commissioners completed two main...more

In the Big Top Spotlight: NAIC Model Bulletin on the Use of Artificial Intelligence Systems by Insurers

The Innovation, Cybersecurity, and Technology (H) Committee of the National Association of Insurance Commissioners has been in the big top spotlight the past year as it has been developing its model bulletin on the use of...more

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

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

Regulators Looking to Various Kitchen Tools to Regulate Insurers’ Use of Artificial Intelligence and Machine Learning

Various chefs within the National Association of Insurance Commissioners and some individual states’ chefs continue to address insurers’ use of artificial intelligence (AI), machine learning (ML), the use and protection of...more

A Flurry of Algorithmic Activity at the NAIC 2022 Fall National Meeting

At the National Association of Insurance Commissioners (NAIC) 2022 Fall National Meeting (Fall Meeting), the various NAIC groups hit the industry with an array of snowballs of various actual and proposed surveys, guidance,...more

Does Colorado’s Draft Big Data Governance Rule Foretell of a Long Winter or an Early Spring?

Colorado Senate Bill (SB) 21-169, which became law in 2021, is intended to “hold insurers accountable for testing their big data systems — including external consumer data and information sources, algorithms, and predictive...more

Colorado Division of Insurance Announces Life Insurance Underwriting Data Call and Survey Details

Survey Released by September 30 - On September 28, the Colorado Division of Insurance (CO DOI) held its fourth stakeholder meeting to discuss life insurers’ underwriting practices. SB-169 required insurers to test their...more

To Prevent Algorithms From Heading Off Course, Regulators Consider Testing

As the various NAIC groups and state regulators continue to ascertain the seaworthiness of insurers’ use of consumer data, algorithms, and machine learning, these lookouts have set their sights on unfair discrimination. The...more

The Colorado Division of Insurance Continues to Navigate Life Insurer’s Use of ECDIS and Algorithms

On July 8, the Colorado Division of Insurance (CO DOI) piloted its third stakeholder meeting during which the CO DOI continued to chart life insurers’ underwriting practices as part of the required rulemaking process to...more

California Throws Shade at Insurance Industry’s Use of Big Data and Algorithms

On June 30, 2022, the California Department of Insurance (CA DOI) released a bulletin titled "Allegations of Racial Bias and Unfair Discrimination in Marketing, Rating, Underwriting, and Claims Practices by the Insurance...more

Flowers Sprout in the Consumer Data Regulation Garden

With spring’s arrival, a bouquet of differing NAIC groups and states is popping up to consider the use of big data and algorithms by insurers, including algorithms based on machine learning. Many are focusing on life...more

The Picture Becomes Clearer as Colorado Holds Second Stakeholder Meeting

On April 12, the Colorado Division of Insurance (CO DOI) held its second stakeholder meeting as part of its process to develop rules for life insurance underwriting practices in compliance with Colorado Senate Bill 21-169 (as...more

One More New Year’s Party – Colorado’s Stakeholder Process Begins

Newly enacted Colorado Statutes section 10-3-1104.9 requires the Colorado Division of Insurance to hold stakeholder meetings to consider insurers' use of external consumer data and information sources, as well as algorithms...more

Scrutiny of Algorithms and Consumer Data

With the growing use of algorithms and external consumer data, several national and international bodies have recently drafted work product or proposed regulations as follows...more

Insurers Need to Do Their Homework: Review of the Use of Data, Algorithms, and Predictive Models

On July 6, 2021, the governor of Colorado signed Senate Bill 21-169 prohibiting insurers’ use of external consumer data and information sources (external data), as well as algorithms and predictive models using external data...more

A Rocky Road Ahead for Insurers Using Consumer Data and Models

The NAIC’s development of guiding principles on artificial intelligence seeks to proactively avoid proxy discrimination, safeguard against other unfairly discriminatory outcomes, and apply risk management to address unfair...more

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