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NAIC Tills the Accelerated Underwriting Garden

Published:
April 17, 2020

The state-based standard-setting organization for insurance held three public meetings in Q1 2020 of the Accelerated Underwriting Working Group (AUWG). Expectations after those meetings include more regulatory focus on data use, algorithms development, consumer transparency, and governance/controls.

NAIC has a separate working group developing new standards for regulatory approvals of predictive models that is more specifically focused on Generalized Linear Models (GLM), but is also likely to feed into and maybe complement this AUWG work. Insurance companies will need to retool their processes and systems to adhere to emerging regulator expectations, but regulators will also need to upskill their knowledge to effectively evaluate ML systems.

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Regulation & Legislation