NAIC Develops AI Systems Evaluation Tool
The National Association of Insurance Commissioners (NAIC) is drafting an AI Systems Evaluation Tool to require insurers to disclose more about their AI applications, with a second draft discussed at its December 7 working group meeting. The questionnaire will have four parts—use quantification, governance risk assessment, high-risk model details, and model data—and 24 states have adopted the 2023 Model Bulletin while 10 have agreed to use the tool, raising industry concerns about burden and confidentiality.
Key Points
- 1Establishes four-part AI questionnaire quantifying use, governance, high-risk models, and model data
- 2Seeks consistent state oversight after 2023 Model Bulletin, addressing varied regulator understanding
- 3Requires insurers to prepare inventories and disclosures, prompting privacy, workload, and compliance concerns
Scoring Rationale
Strong official regulatory development with direct industry impact, limited novelty because it extends the 2023 Model Bulletin.
Sources
Public references used for this report.
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