If artificial intelligence (AI) systems are going to have anything to do with insurance, they ought to obey the same rules that the flesh-and-blood players follow.
A team of state insurance regulators at the National Association of Insurance Commissioners (NAIC) has put that goal in a new AI regulatory principles draft.
The NAIC’s new Artificial Intelligence Working Group has posted the draft on its section of the NAIC’s website. Comments are due Jan. 17.
Working group members agreed to seek comments on the draft Saturday, during an in-person session at the NAIC’s fall national meeting in Austin, Texas.
The group is part of the NAIC’s top-level Executive Committee. The committee formed the working group to “study the development of artificial intelligence, its use in the insurance sector, and its impact on consumer protection and privacy, marketplace dynamics, and the state-based insurance regulatory framework.”
Some consumer reps and others have argued that, in some cases, poorly designed financial services AI systems, or systems drawing on poor data sources, might lead to illegally arbitrary or discriminatory business decisions, or decisions based on reasoning that’s locked away in an AI system and not available for review by live humans.
The working group has considered two AI regulatory principles documents, according to a working group meeting summary report posted by the working group.