Delaware Insurance Commissioner Trinidad Navarro issued a bulletin to all insurance carriers doing business in the state regarding the use of Artificial Intelligence.
The Delaware Insurance Department concedes AI may facilitate the development of innovative insurance products, and can simplify and automate processes and promote efficiency and accuracy.
And that makes Navarro cautiously optimistic about AI’s use in the insurance industry.
"I'm hesitant to say how much better it can potentially make things if it's used properly. Yeah, I think it's great. It is certainly more convenient for consumers,” said Navarro. “Our concern and the primary reason behind the bulletin is to ensure that it's not used in a way that's improper."
But there are risks to consumers according to Navarro.
He says they include the potential for inaccuracy and more.
"So we think that there's a potential for unfair discrimination. We think there's a potential for data vulnerability, and then sort of the lack of transparency and explainability as to how this data is collected and used in a way that's not unfairly discriminatory," said Navarro.
He issued the bulletin to put insurers on notice that AI may not circumvent existing regulatory standards, and to make sure AI is not harmful to consumers.
Delaware joins 21 jurisdictions who adopted guidance similar to the National Association of Insurance Commissioners’ Model Bulletin.
