April 23, 2024
OLYMPIA — Washington state Insurance Commissioner Mike Kreidler has issued a technical assistance advisory (TAA) (PDF, 345.79 KB) to insurers on the use of Artificial Intelligence (AI) in their insurance practices. It draws from the guidance the National Association of Insurance Commissioners (NAIC) adopted on AI for insurers in 2023 (PDF, 272.42 KB).
The TAA reminds insurers that decisions or actions impacting consumers made or supported by advanced analytical and computational technologies, including AI, must comply with all applicable insurance laws and regulations. This includes laws that address unfair trade practices and discrimination.
The TAA also includes what Kreidler’s office considers best practices for AI use and the information and documentation that his office may request from an insurer.
“Artificial Intelligence is transforming the insurance industry and how companies are doing business,” said Kreidler. “While I support innovation and the use of AI that contributes to safe and stable insurance markets, this technology may place consumers at risk for unfair, discriminatory practices. I expect insurers to minimize these risks and do right by the consumer.”