AI Governance Framework - Insurance Edition

Overview

Insurance AI operates under regulatory requirements unlike any other industry. State insurance commissioners have explicit authority over AI use in underwriting, claims, and pricing. NAIC guidance sets expectations for AI governance and bias testing. Actuarial standards require validation of AI models used in insurance decisions. Rate filings must justify AI-driven pricing.

This comprehensive framework is built specifically for insurance organizations. It translates generic AI governance principles into insurance-specific requirements, provides guidance for navigating multi-state compliance, and addresses the unique AI applications in insurance operations.

What's Inside

• Insurance Regulatory Landscape: Overview of state insurance commissioner authority, NAIC Model Bulletin on AI, and emerging state-specific AI requirements
• Multi-Jurisdictional Compliance: Framework for managing AI governance across 50+ state regulatory environments with varying requirements
• NAIC Model Bulletin Compliance: Detailed guidance on meeting NAIC expectations for AI governance, risk management, and consumer protection
• Actuarial Standards Integration: Alignment with ASOPs for AI models used in pricing, reserving, and underwriting including validation requirements
• Rate Filing Requirements: Preparing AI model documentation for rate filings, supporting data requirements, and responding to regulator questions
• Unfair Discrimination Prevention: Testing methodologies and documentation for demonstrating AI models don't discriminate on prohibited bases
• Use Case Governance: Specific governance requirements for underwriting AI, claims automation, fraud detection, pricing models, and agent/broker recommendations
• Implementation Roadmap: 90-180 day implementation timeline tailored for insurance organizational structures

Who This Is For

• Chief Underwriting Officers implementing AI in underwriting
• Chief Claims Officers automating claims with AI
• Chief Actuaries validating AI models for regulatory compliance
• Chief Compliance Officers managing state regulatory requirements
• Insurance CAIOs/CTOs building governance programs

Why This Resource

Generic AI governance frameworks don't address insurance-specific requirements. This framework understands that insurance AI governance must satisfy state regulators who have explicit authority over AI use, actuaries who must sign off on model validity, and compliance teams navigating 50+ jurisdictional requirements.

Every section addresses insurance context: not just "test for bias" but how to test for unfair discrimination under insurance regulations; not just "document your models" but what documentation rate filings require.

FAQ

Q: How does this address NAIC Model Bulletin requirements?

A: The framework provides detailed mapping to NAIC Model Bulletin expectations including governance structure, risk management, third-party oversight, and consumer impact assessment. It includes specific compliance checklists for each NAIC requirement.

Q: What about state-by-state AI requirements?

A: The multi-jurisdictional compliance section addresses varying state requirements including Colorado's AI Act applicability to insurance, state-specific bias testing requirements, and rate filing expectations that differ by state.

Q: Does this cover actuarial validation of AI models?

A: Yes. The actuarial standards integration section addresses ASOP compliance for AI models, including validation requirements, documentation standards, and the actuary's role in AI model governance.