The Accelerated Underwriting (A) Working Group has a charge to consider the use of external data and data analytics in accelerated underwriting in life insurance and, if appropriate, drafting guidance for the states. This work is closely related to the work of the Big Data and Artificial Intelligence (H) Working Group.

The Life Actuarial (A) Task Force has a charge to “provide recommendations for guidance and requirements for accelerated underwriting (AU) and other emerging underwriting practices, as needed”. As part of these efforts, the Task Force may consider requiring companies to submit additional accelerated underwriting related data as part of the NAIC’s VM-50/VM-51 mortality experience data collection.

The Property and Casualty Insurance (C) Committee has several charges related to innovation and cybersecurity. The Committee issues an annual report evaluating the cyber insurance market, including an analysis of data reported on the Cybersecurity Insurance and Identity Theft Coverage Supplement. The Committee also has charges asking the Committee to study the development of autonomous vehicles, telematics, and parametric insurance products, and to consider the development of a white paper or regulatory guidance.

The Casualty Actuarial and Statistical (C) Task Force wrote a white paper, Regulatory Review of Predictive Models, adopted by the NAIC in 2020. This white paper provides regulatory guidance on the review of rate filings that contain generalized linear models in support of their classification rating. Since then, the Task Force has expanded the resource to provide regulatory guidance on tree-based models (random forest and gradient boosted trees modeling--GBM). The Task Force is working on adding regulatory guidance for generalized additive models (GAMs) in 2023. The guidance is also used by the NAIC's rate modeling review team led by Kris DeFrain (NAIC). The NAIC team assists requesting states (who have signed the Rate Review Support Services Agreement with the NAIC) with review of rate models used for classification purposes.

The Statistical Data (C) Working Group is considering updates to the Statistical Data Handbook and ways to receive more timely data. Data standards and technologies like blockchain may be discussed in the future.

The Transparency and Readability of Consumer Information (C) Working Group is considering whether disclosures are needed to inform consumers about premium increases. Such work is tangentially connected with work the H Committee is considering regarding disclosures for the use of algorithms and AI/ML.

The Producer Licensing (D) Task Force had a 2021 charge to draft a white paper on the role of chatbots and artificial intelligence (AI) in the distribution of insurance and the regulatory supervision of these technologies. The Task Force did not complete a white paper and deleted this charge due to the H Committee's appointment of an Innovation in Technology and Regulation (H) Working Group. Any discussions regarding the use of chatbots and AI in the distribution of insurance under the Innovation in Technology and Regulation (H) Working Group or Producer Licensing (D) Task Force should be coordinated.

The Market Conduct Annual Statement Blanks (D) Working Group will begin collecting data on digital claims (Private Passenger Auto and Homeowners) and Accelerated Underwriting (Life) for the 2023 data year, which will be reported to MCAS in 2024.

The Market Information Systems (D) Task Force recommended an analysis of the data needs and quality of data as a prelude to consideration of the feasibility of incorporating AI/ML techniques in the market information systems. The Task Force and the Market Regulation and Consumer Affairs (D) Cmte adopted the recommendations during the 2022 Summer National Meeting.

The Privacy Protections (H) Working Group is charged with using state privacy protections regarding the collection, data ownership and use rights, and disclosure of information gathered in connection with insurance transactions to draft a new Privacy Protections Model Act to replace NAIC models, such as Model #670 and Model #672. The Working Group is also charged with developing a research paper on state insurance privacy protections regarding the collection, data ownership and use rights, and disclosure of information gathered in connection with insurance transactions that states can use to support their implementation efforts related to the adoption of the new Privacy Protections Model Act (#674).

The Antifraud Technology (D) Working Group is charged with evaluation of sources concerning antifraud data and proposing methods for enhancing the utilization and exchange of information among insurance regulators, fraud investigative divisions, law enforcement offices , insurers and antifraud organizations. The Working Group will coordinate with the Innovation, Cybersecurity, and Technology (H) Committee to achieve uniformity with state regulators’ continued efforts to prevent insurance fraud. In addition, the Working Group is responsible for maintaining the NAIC Online Fraud Reporting System (OFRS). The Working Group will meet with regulators and industry to maintain necessary enhancements to OFRS. The Working Group will coordinate with H Committee as it monitors developments in cybersecurity, data security, privacy protections and the use of innovation, and emerging technology by regulators, industry and consumers that affect state insurance regulatory frameworks.

The Market Conduct Examination Guidelines (D) Working Group has a charge to coordinate with the Innovation, Cybersecurity,  and Technology (H) Committee to develop market conduct examiner guidance for the oversight of regulated entities' use of insurance and non-insurance consumer data and models using algorithms and AI. As the H Committee and its Working Groups identify the components of a regulatory framework, the Market Conduct Examination Guidelines (D) Working Group would incorporate appropriate guidance into the NAIC's Market Regulation Handbook.

The Information Technology (IT) Examination (E) Working Group develops and maintains guidance for inclusion in the Financial Condition Examiners Handbook to aid in conducting IT reviews typically performed in conjunction with a full scope financial condition examination. Additionally, the Working Group has a charge to coordinate with the Cybersecurity (H) Working Group to monitor cybersecurity trends, including emerging and/or ongoing vulnerabilities. This coordination effort could result in the development of additional guidance or tools for financial regulators with regard to understanding and evaluating an insurer's cyber-related risks.

The Financial Analysis (E) Working Group (FAWG) is charged with analyzing and monitoring the solvency position of nationally significant insurers. In fulfilling this charge, the FAWG closely monitors nationally significant insurtech companies that primarily rely upon algorithms and other forms of artificial intelligence to automate their underwriting processes. The Working Group monitors the overall operating performance and solvency trend of these insurtech companies. The Working Group also monitors the overall trend and performance of the cyber insurance market and the key insurers within the cyber market.

The Special (EX) Committee on Race and Insurance Property and Casualty workstream has been following the work of the Collaborative Forum as it considers how to ensure there is no unfair discrimination through the use of AI or algorithms. The Workstream is planning to dialogue with insurers to hear about their best practices and governance principles with respect to the product life cycle. The Workstream plans to start with marketing by hearing from major P&C insurers at the Spring National Meeting. These discussions will aid the Workstream and others as they consider whether best practices can be established for the industry.

The Climate Risk and Resiliency (EX) Task Force has a charge to consider innovative insurer solutions to climate risk and resiliency, including evaluation of how to apply technology and innovation to the mitigation of storm, wildfire, other climate risks, and earthquake; and evaluation of insurance product innovation directed at reducing, managing, and mitigating climate risk, as well as closing protection gaps. The Task Force will continue to engage with the Center for Insurance Policy and Research (CIPR) Catastrophe Modeling Center of Excellence (COE) regarding climate-related risk and mitigation research and analysis.