Members of the National Association of Insurance Commissioners (NAIC) have started another round of revisions on their proposed AI Systems Evaluation Tool. This tool is designed to help regulators assess AI technologies used within the insurance industry. However, its introduction is meeting some pushback from both traditional insurers and the insurtech firms that support them.
The NAIC, made up of state insurance regulators, is spearheading the initiative to create a standardized method for evaluating AI systems. By doing this, they aim to bolster consumer protection while ensuring that innovations in AI are used responsibly. Yet, many insurers and tech companies are expressing concerns about the practicality and implications of this regulatory framework.
Insurers worry that the evaluation tool could introduce excessive regulation that may stifle innovation. Insurtech companies, which often rely on cutting-edge AI technologies to differentiate themselves in the market, also question whether the new guidelines could create barriers to entry. There are fears that the proposed measures may inadvertently slow down the pace of technological advancement in the insurance sector.
The ongoing revisions indicate that the NAIC is open to feedback and willing to adjust its approach based on industry input. While the ultimate goal is to balance regulatory oversight with the need for innovation, the road ahead may involve significant discussions about how to achieve this balance. Observers will want to track how these revisions progress and what the final guidelines will entail.
As this initiative develops, it will be crucial for all involved parties to continue engaging in dialogue to ensure that regulations serve both public interests and the dynamic nature of the insurance technology landscape.
Original Source: https://www.dig-in.com/news/naic-starts-work-on-ai-evaluation-method-for-regulators