US NAIC Spring 2024 National Meeting Highlights: Big Data and Artificial Intelligence (H) Working Group

The Big Data and Artificial Intelligence (H) Working Group (“BDAI Working Group”) of the US National Association of Insurance Commissioners (“NAIC”) held a meeting on March 16, 2024 at the NAIC’s Spring 2024 National Meeting. In addition to routine matters, such as adoption of the BDAI Working Group’s 2023 Fall National Meeting minutes, the meeting covered the following matters.

The BDAI Working Group discussed its project plan for 2024, including the BDAI Working Group’s plan to undertake the following key projects:

Collaborating with the Center for Insurance Policy and Research (“CIPR”) to perform additional analysis of the artificial intelligence (“AI”)/machine learning (“ML”) survey results, and identifying areas where follow-up with the insurance industry should be considered.
Developing the health insurance AI/ML survey, which is expected to cover comprehensive major medical (individual and group) plans, student health plans, limited benefit plans, and stop loss/excess loss plans and for which the BDAI Working Group will engage with certain insurance companies in a pilot study of the survey to obtain feedback on the initial survey design.
Obtaining an update from selected private passenger auto companies on their AI/ML activities since completing the auto AI/ML survey about two years ago.
Receiving federal and international updates on AI.
Tracking the adoption of the NAIC Model Bulletin: Use of Artificial Intelligence Systems by Insurers by the states and developing a reference glossary/lexicon for AI-related terms. A map, tracking adoption of the Model Bulletin by state, can be found on the BDAI Working Group’s website and is expected to be updated monthly. As of March 15, 2024, six states (Alaska, Connecticut, Illinois, New Hampshire, Rhode Island and Vermont) have adopted the Model Bulletin, while three states (California, Colorado and New York) are recognized as having insurance-specific regulations or guidance for the use of AI.
Coordinating educational content for regulators on big data and AI in insurance, pending the advancement of the Innovation, Cybersecurity, and Technology (H) Committee’s related initiatives to avoid duplication of effort.

In addition, the BDAI Working Group received a presentation on a survey of research activities conducted by the American Academy of Actuaries (the “Academy”) and the Society of Actuaries (SOA) related to big data, AI, fairness, bias, and governance. The presentation summarized the findings and recommendations from various technical papers and a webinar from the Academy on these issues, as well as other initiatives from the National Institute of Standards (NIST) and Technology and the International Actuarial Association (IAA) to set standards and provide education on AI governance.

Finally, the BDAI Working Group also received an update on international developments on AI/ML in insurance, including the involvement of the NAIC and state insurance regulators in the International Association of Insurance Supervisors (IAIS) FinTech Forum and the Organisation for Economic Co-operation and Development (OECD) Insurance and Private Pensions Committee (IPPC) workstream on AI. In addition, the Innovation and Technology Working Group within the EU-US Insurance Dialogue Project is a forum for members to discuss the relationship between innovation, technology and insurance, such as the increasing use of advanced data analytics in the insurance sector.

To view additional updates from the US NAIC Spring 2024 National Meeting, visit our meeting highlights page.