On December 16, NYDFS Acting Superintendent Kaitlin Asrow addressed the New York State Assembly Standing Committee on Insurance and the Assembly Standing Committee on Science and Technology regarding the use of AI in the underwriting and pricing of insurance policies.

Asrow’s testimony outlined how the agency’s previous guidance, which focused on fairness, governance and risk management, and transparency, also set expectations for insurers’ corporate governance, requiring management to oversee the use of external data and mandate comprehensive documentation and testing of model outputs. Asrow stressed that insurers must protect consumers and maintain a stable financial system amidst the new and developing risks of AI. To that end, Asrow highlighted that NYDFS is “focused on ensuring that the companies and industries [they] regulate are deploying AI responsibly and with appropriate risk management.”