2026-08-14 · Source: pymnts.com (API)
Summary in 3 Points • The NAIC updated its AI Risk Evaluation Supplement to aid state regulators in examining insurers' AI use • The pilot program involves 12 states and will continue through September, with feedback influencing future versions • Regulators are focusing on AI system purpose, data sources, and oversight, raising the importance of a current AI inventory --- The National Association of Insurance Commissioners (NAIC) has updated its AI Risk Evaluation Supplement to assist state regulators in examining how insurers use and manage artificial intelligence. This supplement, which is not a certification or rating system, provides a structured way for regulators to gather evidence about AI use during various examinations and reviews. The pilot program, involving 12 states, will continue through September, with feedback and initial company responses informing future versions of the supplement. Regulators are particularly interested in understanding an AI system's purpose, data sources, and oversight mechanisms, points to the importance for insurers to maintain a current AI inventory and demonstrate effective governance.
For the London insurance market, the NAIC's approach to AI governance could signal a shift towards more stringent regulatory scrutiny of AI systems. Underwriters and brokers may need to ensure that their AI systems are well-documented and that they can demonstrate compliance with similar regulatory expectations. This could lead to increased demand for audit-ready platforms and services that facilitate compliance. Additionally, the focus on accountability and transparency may influence policy wording and risk assessments related to AI use in insurance products.