In the AAIS Pulse session Commissioner’s Corner: Catching Up with National & State Insurance Regulators, host Lori Dreaver Munn, Director of Compliance and Government Relations at AAIS spoke with multiple leading regulators for their insights on trending regulatory topics including Scott White, Commissioner of the Virginia State Corporation’s Bureau of Insurance and NAIC Secretary-Treasurer. In this interview, White talks about his top issues of concern for the NAIC in 2023, artificial intelligence (AI) and blockchain in insurance, key initiatives for the state of Virginia, and more.
Top Issues of Concern for 2023
White believes the NAIC’s focus on climate risk and resiliency is a top concern this year. “Our CIPR Catastrophe Model Center of Excellence is helping the states in three different areas: training, research, and also looking at models that the carriers are using,” shared White. In terms of scenario analysis, he believes if you look at climate, you must look at both sides of the balance sheet, so to speak. “On the P&C side, [you have to look at] the underwriting and make sure they're factoring in the risks coming down the road in terms of modeling,” he explained. “But even on the other side with the assets, something we're talking about more is asset transition risk. So, I expect that to get more attention this year.”
Another area of focus is the NAIC’s flood program. “We want to make sure we have a sound, stable flood program but we also want to encourage our private markets,” said White. “Within our Climate Risk and Resiliency Taskforce, we look at things like pre-disaster mitigation efforts.”
AI & Blockchain in Insurance
White admits blockchain is a very hot item and a top priority for the NAIC. “We have adopted AI principles in the last few years and we're deciding how to use those principles right,” he said. “We have all this data that is very useful for the companies and for regulators, and we have the AI tools that can kind of harness that and use it all these beneficial ways.”
White pointed out that the NAIC is also looking at how blockchain can help the industry with statistical reporting, specifically how regulators can get information more quickly and more efficiently. “I expect [blockchain] to get a lot more attention in the coming years,” he predicted.
Key Initiatives for Virginia
“Virginia State Corporation’s Bureau of Insurance created a new division focused on strategy initiatives, but also cybersecurity and data analysis,” White announced. “We're building up a team of experts in that area that can help our other regulatory areas get data and analyze it and give them the tools that they don't have today.”
To view the entire interview with Commissioner Scott White, click on the video above.
