Government & Regulatory Relations (GRR) recently attended the National Association of Insurance Commissioners (NAIC) Spring National Meeting in Louisville, Kentucky.
Members of the Zurich GRR Team engaged with state regulators from across the country on issues such as climate resiliency and sustainability, innovation and technology, privacy protections, solvency, and other issues of importance to our business. GRR Team members met with delegations from Pennsylvania, Connecticut, Rhode Island, Tennessee, Maryland, and Georgia, including Acting Commissioner Michael Humphreys (PA), Superintendent Beth Dwyer (RI), Commissioner John King (GA), and Commissioner Kathleen Birrane (MD). Below is a recap of some of the major issues discussed over the course of the event.
Climate Resiliency and Sustainability
Several committees focused on climate change challenges, including discussions and presentations regarding convective storm models and the management of flood risk. It appears that the NAIC membership remains in an information-gathering phase as they work to develop a response to climate-related issues. There is more to come in this space.
Innovation, Technology, and Cybersecurity
The Innovation, Cybersecurity & Technology (H) Committee provided an update on the development of the Artificial Intelligence (AI) model bulletin. The bulletin will outline a regulatory framework for the use of AI by the insurance industry. The Committee formed drafting groups and is endeavoring to expose the bulletin for comment in early Summer. Additionally, the Big Data and Artificial Intelligence (EX) Working Group received comments and provided updates on the proposed AI model questions. The Working Group acknowledged the concerns the industry has with the model questions and indicated there would be several changes made and a revised draft released by the end of May 2023.
Prior to the National Meeting, the Privacy Protections Working Group released the first draft of the Consumer Privacy Protections Model Law (# 674). The Working Group received comments and provided an Updated Work Plan for moving forward with the draft Model. At the request of industry members, the Work Plan has been revised to include numerous open calls of the Working Group to discuss certain aspects of the draft Model, an in-person stakeholder session, and a November vote on the draft model.
The Cybersecurity (H) Working Group is currently developing a cybersecurity incident response plan to aid states in responding to cybersecurity incidents. It plans to produce a draft document for regulators’ consideration at the Summer National Meeting.
The Property and Casualty (C) Committee adopted the draft Nonadmitted Insurance Model Act (#870) bringing the model law into alignment with the federal Nonadmitted and Reinsurance Reform Act of 2010.
Discussions with state regulators across the country will continue at NAIC’s next meeting in the Summer of 2023.
Learn more about Zurich North America-Government & Regulatory Relations’ top priorities here.