The swift development of AI has resulted in the increasing integration of AI technology in insurance claims management and insurance underwriting. In certain cases, AI has been used by insurers to streamline administrative work to improve efficiency, especially for day-to-day claims handling. Insurers have also begun incorporating AI capabilities into other facets of the business, such as underwriting and the investigation of suspected fraud. As AI continues to impact how insurers are conducting business, various states are responding with regulatory frameworks to address purported risks. Specifically, regulators have expressed concern that the use of data sets and the algorithms developed to process them in marketing, underwriting, and claims handling may knowingly or unknowingly lead to systemic denials or discrimination and other disparate impacts to consumers. Accordingly, a patchwork of guidance has emerged, focused on governance, oversight, and disclosure regarding the use of consumer data and AI technology.

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