NAIC officially adopts artificial intelligence principles
The guidelines emphasize the importance of accountability, compliance, transparency, and safe, secure and robust outputs.
Members of the National Association of Insurance Commissioners (NAIC) have agreed unanimously to adopt Artificial Intelligence (AI) Guiding Principles.
The NAIC’s AI Working Group based the document on a set of AI principles developed by the Organisation for Economic Co-operation and Development (OECD). The United States is one of the 42 countries that has adopted the OECD AI principles.
State insurance regulators and representatives for consumer groups have said careful oversight of AI-based systems is essential because of concerns that insurers or other entities could use them to hide illegal forms of discrimination, such as race-based bias.
The NAIC‘s AI principles outline five key tenets:
- Fair and Ethical: Respecting the rule of law and implementing trustworthy solutions.
- Accountable: The responsibility for the creation, implementation and impacts of any AI system.
- Compliant: To have the knowledge and resources in place to comply with all applicable insurance laws and regulations.
- Transparent: Maintain a commitment to responsible disclosures regarding AI systems to relevant stakeholders as well as the ability to inquire about and review AI-driven insurance decisions.
- Secure/Safe/Robust: Ensure a reasonable level of traceability of datasets, processes, and decisions made and implementation of a systematic risk management process to detect and correct risks associated with privacy, digital security, and unfair discrimination.
“Data supporting the final outcome of an AI application should be retained and be able to be produced in accordance with applicable insurance laws and regulations in each jurisdiction,” according to the document text. “AI actors should be responsible for the creation, implementation and impacts of any AI system, even if the impacts are unintended.”
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