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 steerage for approval on the Summer season Nationwide Assembly in August. A drafting group consisting of regulator representatives will spend the following few weeks revising the prior draft steerage in mild of public feedback beforehand acquired and to mirror the outcomes of the Life AI/ML Survey[1] and the AI Model Bulletin[2] launched and adopted respectively eventually yr’s Fall Nationwide Assembly in December. Procedurally, it’s anticipated that the working group will expose model 2.0 of the draft steerage close to the tip of April for a 30-day public remark interval expiring in Could. This shall be adopted by a model 3.0 in June uncovered for an extra open remark interval adopted by ultimate public publicity in July and approval by the working group in August such that the Life & Annuities (A) Committee could 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 Pointers (D) Working Group to incorporate extra steerage within the NAIC Market Regulation Handbook to alert market conduct examiners to novel knowledge sources, methodologies, and processes life insurers could make the most of in accelerated underwriting and suggest supplies that examiners ought to evaluation, 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 activity forces whose prices additionally relate to accelerated underwriting, together with the newly shaped Third-Get together Information and Fashions (H) Activity Power.
Locke Lord will proceed to observe accelerated underwriting, large knowledge, and predictive modeling developments on the NAIC. In case you have any questions, please attain out to the writer or your Locke Lord accomplice.
[1] NAIC Workers Report: Life Insurance coverage Synthetic Intelligence/Machine Studying Survey Outcomes.
[2] NAIC Mannequin Bulletin: Use of Synthetic Intelligence Techniques by Insurers.
