The Delaware Department of Insurance published a bulletin reminding insurers that they must comply with all insurance laws and regulations, regardless of the method used to make decisions or actions, including Artificial Intelligence Systems.

Delaware is following the footsteps of some other states in adopting NAIC’s Model Bulletin: Use of Artificial Intelligence Systems by Insurers, which relays the expectations of insurers in their development and use of AI technologies.

The use of AI systems has been largely beneficial in many stages of the insurance cycle, but insurers must be aware of the potential risks. Any action or decision affecting insureds made and supported by AI and AI systems must comply with applicable Delaware insurance laws and regulations, including: