US insurance regulator expectation on AI

The National Association of Insurance Commissioners’ (NAIC) Innovation, Cybersecurity, and Technology Committee posted for comment a widely anticipated model bulletin on regulatory expectations for insurers’ use of artificial intelligence systems (AI systems), which is called as ‘AIS’. The Model Bulletin encourages insurers to develop and implement a documented AI Systems Program (AIS Program) that is approved by the board of directors and addresses governance, risk management controls, internal audit roles, and third-party AI systems. Select the link below to read the model bulletin

https://us.eversheds-sutherland.com/portalresource/07172023-exposure-draft-ai-model-bulletin.pdf

The model provides guidelines on the following :

• AIS Program Guidelines
• Governance
• Risk Management and Internal Controls
• Third Party AIS