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NAIC pilots AI Systems Evaluation Tool for insurer governance
The NAICs Big Data and Artificial Intelligence Working Group is set to meet Aug 13, 2026, with ongoing survey materials running through Sep 30, 2026.
Insurance regulators in 12 states began piloting a new approach to examine how insurers use artificial intelligence, using the NAICs AI Systems Evaluation Tool to help carriers explain their AI governance and to help regulators understand how the technology is applied, according to Coverager.
The next public checkpoint is scheduled for Aug 13, 2026, during the NAICs 2026 Summer National Meeting. Materials for the working group’s latest public meeting show company surveys continuing through Sep 30, 2026, Tool 5.0 expected to enter a 30 day comment period in September, and a later version potentially reaching the NAIC for adoption consideration in November.
Coverager reports that the tool is structured around proportional evaluation. Participating states are expected to spend more time on AI systems that could create serious consumer or financial consequences and less time on lower risk back office tools, and states can tailor questions to specific companies and examinations.
In the pilot materials, Tool 4.0 includes four exhibits that cover how AI systems are inventoried by operational area, the insurer governance and risk management framework, details on systems considered high risk, and the types and sources of data involved. The NAIC tool also distinguishes whether an AI system supports a person, augments a decision, or automates a process, with expectations that insurers explain the use case in more precise terms than product labels provide.