Vall Herard, CEO of compliance software vendor Saifr, claims that his firm’s AI Agent for NAIC model law and state regulations helps reduce compliance review cycle times by up to 70%.
The platform, he added, helps ensure regulatory consistency and allows marketing teams to resolve issues before compliance review, freeing up staff to focus on more complex matters.
‘Human in the loop’
Still, experts caution that human oversight remains essential. Stacy Koron, VP at First Consulting, warned that while AI can accelerate product development, it can also overlook key compliance issues.
“Like any other risk to our business, we need to monitor output closely, work with developers to improve accuracy, and pivot quickly if we determine AI systems are not working as intended,” she said in an email.
Koron pointed to the NAIC model bulletin as a valuable tool for applying existing laws to new AI technologies — particularly around non-discrimination, governance, and market conduct. While these laws may need to evolve, she said insurers can minimize disruptions by staying focused on core compliance principles and consumer protections.
First Consulting’s Cox emphasized that insurers should view AI as a tool to augment, not replace, compliance teams. Having a “human in the loop,” especially during these early days of AI adoption, is essential for verifying results, he said.
Saifr’s Herard agreed. “The AI tool isn’t a replacement for human review — it is a supplement,” he said.
To balance innovation with risk management, insurers must implement structured AI governance frameworks, said Vectara’s Chapman. This includes investing in mandatory employee training on the responsible use of AI, deploying monitoring tools integrated into configuration management databases to track where and how AI systems are used, and involving risk officers and senior executives to ensure transparency and accountability in AI use.