NAIC Advances AI Oversight Tool in 12-State Pilot

The National Association of Insurance Commissioners adopted its AI principles in 2020 and approved the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers in December 2023. The bulletin holds insurers accountable for AI-supported decisions affecting consumers and outlines governance expectations. The new supplement takes oversight a step further by giving state regulators a practical framework for collecting evidence on AI use, risk controls and company supervision during routine reviews.

The NAIC’s Big Data and Artificial Intelligence Working Group said at its Aug. 13, 2026, meeting in Columbus, Ohio, that the AI Risk Evaluation Supplement pilot began in March, involves 12 states and will run through September. Regulators are testing it in market-conduct examinations, financial examinations, financial analyses and broader inquiries. Participating states are coordinating communications and selecting insurers for review, while AM Best urged governance that scales with AI risk and includes validation, human oversight, monitoring, authorization limits and rollback procedures.