The Michigan Division of Insurance coverage and Monetary Companies (DIFS) launched a bulletin this month addressing the rising use of synthetic intelligence within the insurance coverage trade. The bulletin clarifies DIFS’ expectations and descriptions the tasks that insurers have once they undertake these new applied sciences, DIFS director Anita Fox stated.
The Aug. 7 bulletin states that insurers should adjust to all relevant insurance coverage legal guidelines and rules when making selections and actions supported by superior analytical and computational applied sciences.
The bulletin offers background on the methods AI is getting used within the trade. It goes on to offer regulatory expectations and oversight concerns primarily based on present federal and state legal guidelines.
The bulletin additionally provides AI system pointers for insurers to observe. An insurer’s AI system program must be designed to mitigate the chance that the insurer’s use of an AI system will lead to hostile shopper outcomes, the bullet says.
DIFS stated the aim of the bulletin is to not prescribe particular practices or particular documentation necessities however somewhat to make sure that insurers within the state are conscious of the division’s expectations as to how AI Techniques might be ruled and managed.
“Using AI is reworking the way in which work is finished in lots of industries, together with insurance coverage, however it’s important that each resolution made by insurers utilizing these techniques complies with all relevant federal and state legal guidelines and rules,” stated Fox.
DIFS cautions that AI can current distinctive dangers to clients together with the potential for inaccuracy, unfair discrimination, information vulnerability, and lack of transparency and explainability.
“Insurers ought to take actions to attenuate these dangers,” the bulletin reads.
DIFS cites Nationwide Affiliation of Insurance coverage Commissioners’ Rules of Synthetic Intelligence as an applicable supply of steerage for Insurers as they develop and use AI techniques. The bulletin particulars the division’s legislative authority
Matters
InsurTech
Data Driven
Artificial Intelligence
Michigan
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