Emma RadmoreIAIS has issued an update on its work on the adoption of AI and machine learning in the insurance sector. It has reviewed guidance from 12 international supervisors and organisations. Among its conclusions are that the increase us of AI/ML brings both significant benefits and the potential to create new or enhance existing risks. Several supervisors have issued high level guidance to address these concerns, particularly around model governance and model risk management, data usage and management and management of third party providers. The review concluded that the measures regulators have taken complement IAIS standards, but few have issued insurance-specific guidance.
IAIS will develop an application paper during 2024.