Takeaways:
- AI Systems Evaluation Tool in progress for 2027 launch
- NAIC last collected home insurance data in 2024
Heading into its spring meeting next week, the NAIC continues to develop an AI evaluation tool for state insurance regulators.
The AI Systems Evaluation Tool,
"When people ask me how the industry or how companies are using AI, we don't really have a great understanding of that," White said. "We've done surveys, but they're not that current. They need to be constantly updated. This will allow us to go straight into the department and ask questions to get a better understanding. Collectively, we'll have a better idea of where insurers are using AI."
The tool will show insurers a consistent, structured method that regulators will use to examine their use of AI, White added. Four more states have agreed to adopt the tool since December, so 14 states have now committed to it.
NAIC will hold its spring meeting next week, and plans to roll out a revised version of the tool in the spring or summer, finalize it for comment in September, and launch it in 2027, White said in the Academy of Actuaries meeting.
White, who has served as the appointed insurance commissioner of Virginia since 2018, added that his state's new insurance modernization hub will itself be examining insurers' use of AI. The hub includes data analysts, cybersecurity experts, policy advisors and strategic planners, and will advise Virginia's State Corporation Commission, including the Bureau of Insurance, on AI issues.
Evaluating the use of AI for predictive rate models is new to insurance examiners, White said, and new capabilities will make this easier.
The NAIC is also preparing a
