The West Virginia Office of the Insurance Commissioner (OIC) issued a bulletin reminding insurers that any decisions or actions impacting consumers that are made or supported by artificial intelligence (AI) systems must comply with existing laws and regulations.

The bulletin calls out unfair trade practices, unfair claims settlement practices, and unfair discrimination. While AI is revolutionizing the insurance industry, it also introduces potential risks, including inaccuracies, unfair discrimination, data vulnerabilities, and a lack of transparency.

In recognition of these challenges, the OIC endorses the Principles of Artificial Intelligence adopted by the National Association of Insurance Commissioners (NAIC) in 2020 as a framework for insurers. The OIC urges all insurers authorized to operate in West Virginia to establish and maintain a comprehensive written program (AI Systems Program) to ensure the responsible use of AI in decision-making processes related to regulated insurance practices.

The OIC bulletin outlines specific guidelines to assist insurers in developing their AI Systems Programs. These guidelines are designed to mitigate the risk of adverse consumer outcomes and include recommendations for establishing a governance framework for AI oversight, implementing risk management and internal controls, and managing third-party AI systems and data.