Oklahoma Insurance Commissioner Glen Mulready issued a bulletin outlining regulatory guidance for insurers using artificial intelligence. It specifies the documentation and information regulators may request during investigations, according to the Oklahoma Insurance Department (OID).
The guidance aligns with standards from the National Association of Insurance Commissioners (NAIC), focusing on fairness, accountability, transparency, and compliance with state laws to reduce AI-related risks
The NAIC adopted its model bulletin in December 2023. Since then, 19 states have adopted it, while four others have implemented similar measures.
The guidelines require insurers’ AI systems to comply with state and federal laws. Insurers must ensure AI-based decisions are not inaccurate, arbitrary, or unfairly discriminatory.
The OID also set expectations for insurers working with third-party AI systems and data providers. Insurers should include audit rights in vendor contracts and ensure third parties cooperate with regulatory investigations or inquiries.
With new technologies comes the responsibility to ensure Oklahoma’s industry innovates while maintaining consumer protection. We hope to see artificial intelligence used to increase efficiencies and improve overall experiences
Glen Mulready, Oklahoma Insurance Commissioner
The guidelines cover risk management and internal controls, including the need for ongoing validation, testing, and retesting of AI outputs. Insurers must ensure data used to develop, train, and audit AI models is appropriate and accurate.
Attempts to obtain further comments from the insurance regulator were unsuccessful.
