As artificial intelligence (AI) continues to evolve in the P&C insurance industry, navigating regulatory trends has become increasingly critical to ensuring compliance, maintaining consumer trust, and fostering responsible innovation. In a recent AAIS webinar, industry experts discussed the evolving role of AI in the insurance sector, focusing on its regulatory trends and best practices for responsible adoption. Chris Aufenthie, Director of Regulatory Filings at AAIS, moderated the discussion with insights from Anthony Habayeb, Co-Founder and CEO of Monitaur, and Mary Block, Director of Insurance Regulation at the Vermont Department of Financial Regulation. Together, they explored key topics including trends in AI adoption, practical steps to align with the NAIC AI Bulletin, and strategies to ensure transparency and explainability for regulators and consumers.

As part of the AAIS Webinar Series, AAIS hosted a virtual presentation on June 13, 2023, featuring AAIS Partner, Davies. Moderated by AAIS Personal Lines Product Manager, Linda Jancik, the session explored how wind models are created, used, and regulated. Featured guest speakers, Greg Fanoe, Director & Consulting Actuary at Davies, Sandra Darby, Property & Casualty Division Actuary at the Maine Bureau of Insurance, and Shaveta Gupta, Catastrophe Risk & Modeling Actuary at the NAIC, discussed how this data is gathered from inside the storm, why it’s collected, and how it is used by insurance carriers to price policies. The panel also analyzed hurricane models from the regulation side, explaining how regulators use this data to develop legislation to further protect consumers and ensure a healthy market.

On Aug. 16, at the 2021 Summer National Association of Insurance Commissioners (NAIC) National Meeting, AAIS VP of Government Affairs, Legal & Compliance, Robin Westcott, presented the results of a Proof of Concept (POC) testing whether openIDL could support a COVID-19 Business Interruption Data call issued by the NAIC.

The meeting served as the kickoff for the openIDL Regulatory Reporting Steering Committee (RRSC). Ms. Westcott provided highlights from the positive findings set out in the report published by AAIS declaring that blockchain/distributed ledger technology had passed the test enroute to even broader applications across the industry.

Following is a summary of Ms. Westcott’s presentation:

Regulatory-driven statistical reporting was first established for the insurance industry by the NAIC Property & Casualty Model Rating Law some 70 years ago. And the practices and procedures that underpin insurer statistical reporting have changed little in the decades since. Now, however, statistical reporting is being modernized with the development of the open Insurance Data Link (openIDL). Dina Burgess, Manager of Enterprise Risk Applications at AAIS, talks about the need for this change and the new ease, efficiency and accuracy that characterizes modern regulatory reporting.