The Accelerated Underwriting (A) Working Group of the Nationwide Affiliation of Insurance coverage Commissioners (“NAIC”) met on April 3, 2024, to debate its workplan for finalizing proposed regulatory steering for approval on the Summer season Nationwide Assembly in August. A drafting group consisting of regulator representatives will spend the subsequent few weeks revising the prior draft steering in gentle of public feedback beforehand obtained and to replicate the outcomes of the Life AI/ML Survey[1] and the AI Model Bulletin[2] launched and adopted respectively finally 12 months’s Fall Nationwide Assembly in December. Procedurally, it’s anticipated that the working group will expose model 2.0 of the draft steering close to the top of April for a 30-day public remark interval expiring in Might. This will probably be adopted by a model 3.0 in June uncovered for a further open remark interval adopted by remaining public publicity in July and approval by the working group in August such that the Life & Annuities (A) Committee might undertake the ultimate model on the Summer season Nationwide Assembly in August.
The working group additional seeks to finalize for approval on the Summer season Nationwide Assembly a referral to the Market Conduct Examination Tips (D) Working Group to incorporate extra steering within the NAIC Market Regulation Handbook to alert market conduct examiners to novel knowledge sources, methodologies, and processes life insurers might make the most of in accelerated underwriting and suggest supplies that examiners ought to overview, e.g., disclosures, supply knowledge, in addition to testing and/or auditing insurance policies and procedures.
The working group is conscious of the work of different NAIC working teams and job forces whose costs additionally relate to accelerated underwriting, together with the newly shaped Third-Get together Information and Fashions (H) Process Power.
Locke Lord will proceed to watch accelerated underwriting, massive knowledge, and predictive modeling developments on the NAIC. If in case you have any questions, please attain out to the writer or your Locke Lord companion.
[1] NAIC Employees Report: Life Insurance coverage Synthetic Intelligence/Machine Studying Survey Outcomes.
[2] NAIC Mannequin Bulletin: Use of Synthetic Intelligence Methods by Insurers.
