Core Insurance
NAIC | December 06, 2023
The National Association of Insurance Commissioners (NAIC) Membership voted to adopt the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers during the 2023 Fall National Meeting.
The bulletin reflects the work of the NAIC Innovation, Cybersecurity, and Technology (H) Committee, chaired by Maryland Insurance Commissioner Kathleen A. Birrane. Michael Conway, Commissioner of the Colorado Division of Insurance, and Doug Ommen, Commissioner of the Iowa Insurance Division, are co-vice chairs of the committee.
"This initiative represents a collaborative effort to set clear expectations for state Departments of Insurance regarding the utilization of AI by insurance companies, balancing the potential for innovation with the imperative to address unique risks,"
said Commissioner Birrane.
As the insurance sector navigates the complexities of AI, the NAIC's Model Bulletin on the Use of Artificial Intelligence Systems by Insurers provides a robust foundation to safeguard consumers, promote fairness, and uphold the highest standards of integrity within the industry.
[Source -PR Newswire]
The H Committee, comprised of representatives from 15 states, began drafting the bulletin in 2023 with the goal of establishing comprehensive regulatory standards to ensure the responsible deployment of AI in the insurance industry. The bulletin addresses critical issues related to the usage of AI, such as potential inaccuracies, unfair biases leading to discrimination, and data vulnerabilities.
While not a model law or regulation, the AI model bulletin serves as a guiding document, fostering uniformity among state insurance regulators regarding expectations for insurance carriers deploying AI. The bulletin comprises four key sections, each addressing crucial aspects of AI usage by insurers. It emphasizes the importance of responsible governance, risk management policies, and procedures to ensure fair and accurate outcomes for consumers.
The bulletin reminds insurance carriers that decisions impacting consumers that are made or supported by advanced analytical and computational technologies, including AI, must comply with all applicable insurance laws and regulations, including unfair trade practices. The bulletin also sets forth state insurance regulators' expectations on how insurers should govern the use of such technologies by or on behalf of the insurer to make or support such decisions, including the creation and implementation of a written AIS Program, commensurate with an assessment of the risk in accordance with the guidelines established by the NAIC's 2020 Principles of Artificial Intelligence, and to ensure that decisions impacting consumers made or supported by AI are accurate and do not violate unfair trade practice laws or other applicable legal standards. The bulletin also advises insurers of documentation that a state Department of Insurance may request during an investigation or examination.
The initial draft was presented to the working group on June 29, 2023, and subsequently exposed for public comment periods, allowing for extensive input from industry stakeholders, consumers, and legislators. The process involved two exposure periods, with the first public comment period ending on Sept. 5, 2023, and the second ending on Nov. 6, 2023. The review process also included in-person comments during the 2023 Summer National Meeting in Seattle, WA, and during the 2023 Fall National Meeting in Orlando, FL.
Significant updates were made to the model bulletin based on the feedback received. These updates addressed concerns raised during the review process, including a shift in focus toward outcomes, revisions to key definitions aligned with National Institute for Standards and Technology (NIST) standards, and updates to language on third-party contracting and testing and validation protocols.
Commissioner Birrane expressed gratitude for the collaborative efforts of the H Committee, drafting groups, and all stakeholders involved. The completion and adoption of the model bulletin mark a significant step forward in adapting regulatory frameworks to the evolving landscape of AI in the insurance industry.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.
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Risk Management
PR Newswire | October 12, 2023
INSURICA, one of the largest privately held independent insurance agencies in the nation, has selected Ascend, the leading financial operations automation platform, to advance their commitment to innovation, elevate the client experience, and drive increased efficiency across their operations.
As the industry's sole provider of financial operations automation software, Ascend will streamline INSURICA's billing, carrier payables, and financing workflows. By integrating Ascend's transformative technology, INSURICA aims to enhance their customer-centric approach while empowering their teams to dedicate more time to building valuable client relationships.
We are constantly re-evaluating the way we do business, striving to deliver exceptional customer service and optimize our operations, said Kylie Hubbard, Director of Innovation at INSURICA. Ascend is a groundbreaking solution that has truly revolutionized our post-placement lifecycle for policies. With seamless software and automation, we have significantly improved customer service and streamlined our processes.
Ascend's solution automates all accounts receivable (AR) and accounts payable (AP) tasks in the agency bill workflow. From invoicing to premium financing to carrier payables, Ascend simplifies the complex tasks associated with premium and commission management. This unified workflow provides real-time transparency and accelerates the speed at which INSURICA can bind and manage policies, all while prioritizing a superior customer payment experience.
We founded Ascend with the goal of partnering with leaders in the insurance distribution channel to optimize operational efficiencies and elevate the client experience through automation, emphasized Andrew Wynn, Co-CEO of Ascend. INSURICA's commitment to innovation aligns perfectly with our mission, and we are honored to collaborate with them in pushing the insurance industry forward.
About Ascend
Ascend is the industry-leading provider of financial operations automation software, dedicated to modernizing the insurance industry's financial infrastructure. Ascend is the only solution designed to enhance agency management systems by streamlining the insurance life cycle for agency bill processes. By eliminating manual back office accounting tasks, improving cash collection cycles, and providing a best-in-class customer experience, Ascend significantly increases the productivity, efficiency, and profitability of agencies and brokerages. To learn more about how Ascend can transform your business, please visit www.useascend.com.
About INSURICA
Placing over $1 billion in annual premiums for our clients, INSURICA is among the 40 largest insurance brokers in the United States and is currently the 24th largest privately held independent agency in the country.
INSURICA employs more than 600 colleagues in 33 offices located throughout Oklahoma, Texas, Arkansas, Kansas, Colorado, Arizona, California, Mississippi, Alabama, and Florida. We are constantly looking to expand our network with partners who bring additional value and expertise to the enterprise and our clients. Our focus on finding quality and experienced partners, coupled with the resources of Assurex Global positions INSURICA as one of the preeminent insurance brokerages in the country and further emphasizes our customer pledge that we "Specialize in You."
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Compliance
PR Newswire | September 21, 2023
NEXT Insurance, a leading digital small business insurer, today announced a differentiated new offering that will enable agents to fully customize coverage quotes to better meet the needs of their small business clients. NEXT's Coverage Builder represents a fundamental leap in allowing agents the ability to micro-tailor small business quotes for their clients, all while maintaining NEXT's superior instant bind capabilities. Coverage Builder is fast, easy to use, and tailored exclusively to agents pre-purchase, equipping them with the tools they need to select the appropriate limits and fully control the coverage they're quoting.
With Coverage Builder, agents can select their base policy limits, add or remove coverage or update limits post-purchase, all while benefiting from the convenience of instant underwriting and price updates. This saves agents valuable time and money, allowing them to make changes automatically without the need to pick up the phone and connect directly with an underwriter. NEXT's Coverage Builder offering furthers the company's commitment to its agents by providing a user-friendly and accessible digital quoting experience, 100% online. Coverage Builder is also available to all NEXT customers post-purchase, allowing small business owners to tailor their policies with immediate price updates and seamless policy management.
"NEXT's Coverage Builder feature is 100% hassle-free," said Cody L Slocum Lammers, Commercial Lines Agent & Broker at Affordable Insurance Solutions. "This new feature sets NEXT Insurance to a new level, above its competitors, as this allows agents the flexibility to customize policies to fit the needs of each individual small business. It's user-friendly and simple to understand- this is truly a game changer for NEXT Insurance agents!"
"Agents are the go-to insurance experts and know exactly the unique types of coverage small business owners need - that's why we're offering them the opportunity to customize policies for their clients instead of standardized coverage packages," said Jack Ramsey, Vice President of Agent Business at NEXT Insurance. "Now, with NEXT's Coverage Builder, we are empowering agents to instantly quote and easily customize and bind policies that will best serve their customers. As a result, small business owners will gain the peace of mind that they're only paying for the coverage they need to protect their business and livelihood."
NEXT's Coverage Builder offering comes on the heels of the company's launch of commercial umbrella/excess liability coverage to support small businesses in their entrepreneurial journey. The digital small business insurer also recently announced its integration with Ivans Download™ for General Liability and Workers' Compensation policies and its strategic hire of Jack Ramsey as the company's Vice President of Agent Business. These developments are further evidence of NEXT's commitment to agents and dedication to providing them with a smoother, more intuitive insurance purchasing process for small business clients.
If you're interested in working with an insurance agent through NEXT Insurance, visit our website to find an expert to help you get the right coverage at the best price.
About NEXT Insurance
NEXT Insurance is transforming small business insurance with simple, digital, affordable and tailored coverage. Trusted by over 480,000 business owners, NEXT offers policies that are easy to buy and provides 24/7 access to Live Certificates of Insurance, additional insured, and more. Revolutionizing a historically complicated insurance industry, NEXT utilizes AI and machine learning to simplify the purchasing process and provide more affordable coverage. Founded in 2016, the company is headquartered in Palo Alto, has received a total of $881 million in venture capital funding, is rated "A- Excellent" by AM Best and has been recognized by CNBC Disruptor 50, Forbes Fintech 50, Inc.'s Best-Led Companies, and Forbes Best StartUp Employers. For more information, visit NEXTInsurance.com. Stay up to date on the latest with NEXT on Twitter, LinkedIn, Facebook and our blog.
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