NEW YORK (Aug. 6, 2019) — More than 325 insurance regulators, consumer representatives and industry stakeholders discussed artificial intelligence at a forum coordinated by the National Association of Insurance Commissioners' (NAIC) Center for Insurance Policy and Research (CIPR). The event, "Demystify the Use of Artificial Intelligence in Insurance", was held in conjunction with the NAIC 2019 Summer National Meeting in New York City.
At this year's NAIC 2019 Summer Meeting, the Innovation and Technology Task Force adopted a motion to form an Artificial Intelligence (EX) Working Group. The group will 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.
"Artificial intelligence technology is shaping many sectors, and insurance is among them," said NAIC President and Maine Insurance Superintendent Eric A. Cioppa. "The rise in accessible data, computational resources, and changing consumer expectations has recently led to a strong acceleration of AI development. Using AI to adjust premiums or to detect inconsistencies and unusual patterns has become has quickly become a standard for insurers."
The event included a presentation on how artificial intelligence has transformed the insurance industry and one on AI and next-generation data. The last session was a panel discussion on the impact of AI on the future of insurance moderated by Iowa Insurance Commissioner Doug Ommen.
"Like all technology, the opportunities come with associated risks. We are just starting to understand the potential impact of artificial intelligence in insurance and this forum highlighted the issues we should be looking at," said Ommen. "As regulators, we must use a common-sense and thoughtful approach as we review these issues. AI technology can transform how the insurance industry operates and it's our job to help ensure consumers remain protected while allowing carriers, producers and other industry vendors to utilize cutting edge technology like AI to create and sell better products that consumers want to purchase to limit their risk."