GDR: Insurance braces for heightened AI requirements

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GDR: Insurance braces for heightened AI requirements

February 14, 2024

United States
United States
United States

Eversheds Sutherland Partner Rachel Reid interviews with Global Data Review about the release for public comment by the New York State Department of Financial Services (NY DFS) of a proposed circular letter to regulate the use of artificial intelligence systems (AIS) and external consumer data and information sources (ECDIS) in insurance underwriting and pricing.

Rachel discussed some key considerations for insurance companies of the NY DFS letter and a draft from Colorado that also addresses the regulated use of AI in state-licensed insurance operations.

“AI and this latest iteration of AI give companies the ability to process information on a much larger scale,” Rachel said. “The concept of what [regulators] are doing is not new. I think they’re accounting for the potential of this new generation of technology. As we say with AI, the opportunities are great but the risks of peril also increase with the power of the technology.”

 

Publication: Global Data Review

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rachelreid@eversheds-sutherland.com

Rachel M. Reid

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Atlanta, United States

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