As the National Association of Insurance Commissioners (NAIC) becomes more interested in how insurers are using AI, Fenwick’s Heidi Lawson joined Digital Insurance to discuss the NAIC’s forthcoming AI Systems Evaluation Tool.
The tool is intended to help various state regulators reach a standard for addressing AI in the insurance industry, she told the outlet.
"There's a wide range of understanding of AI among the regulators," Lawson said. "If they agree on one thing that could be helpful, because otherwise, it feels like a very high chance it's going to be misunderstood."
Lawson also highlighted alternative methods for regulating AI.
"There are some companies now that test AI accuracy that could run diagnostics," she said. "That would be a lot more efficient and accurate, on whether there's any drift in the AI models."
Read the full article at Digital Insurance.