WI| The March 18, 2025 Bulletin from the Wisconsin Office of the Commissioner of Insurance addresses the use of Artificial Intelligence (AI) systems in the insurance industry. It emphasizes that decisions made using AI must comply with all applicable insurance laws and regulations, including those related to unfair trade practices and discrimination. The Bulletin outlines expectations for insurers to develop and implement a written program for the responsible use of AI systems, ensuring transparency, fairness, and accountability.
Key points:
- Compliance with Regulations: Insurers must ensure that AI-driven decisions comply with laws such as unfair marketing practices and insurance claim settlement standards.
- Risk Management and Governance: Insurers are expected to develop an AI System (AIS) program that includes robust governance, risk management controls, and internal audit functions to mitigate risks associated with AI use.
- Transparency and Accountability: The AIS program should provide transparency and accountability in AI system design and implementation, including processes for documenting compliance and addressing potential biases or errors in predictive models.