NAIC Adopts AI Principles
Members of the National Association of Insurance Commissioners (NAIC) unanimously adopted guiding principles on artificial intelligence (AI) on August 14, 2020, emphasizing the importance of accountability, compliance, transparency, and safe, secure and robust outputs. These principles were established to inform and articulate general expectations for businesses, professionals, and stakeholders across the insurance industry as they implement AI tools to facilitate operations.
The principles were Developed by the NAIC’s AI Working Group, which are based on the Organization for Economic Co-operation and Development’s (OECD) AI principles, which have been adopted by 42 countries, including the United States.
“The vast amounts of data and ever expanding computing power is accelerating the use of artificial intelligence within the insurance industry. And while this tool can greatly aid businesses across the sector, it also raises new challenges to be addressed, including consumer privacy and safeguards to protect against unintended discrimination that may be built into algorithms,” commented Jon Godfread, North Dakota Insurance Commissioner and Chair of NAIC’s AI Working Group.