State Insurance Regulators Embracing SupTech
On Thursday April 27, 2023, the Innovation in Technology & Regulation (H) Working Group met to discuss its 2023 Work Plan, the development of a regulator-to-regulator SupTech Forum, a pilot project InsureTech Forum, and to hear a presentation on ChatGPT. The regulators quickly approved the 2023 Work Plan and closed the meeting hearing the presentation on ChatGPT without raising any questions. The substance of the meeting consisted of planning for InsureTech and SupTech Forums.
The working group is developing a regulator-to-regulator SupTech Forum. For those not familiar with the term, SupTech refers to technology solutions designed for supervisory agencies so that they may perform their supervisory duties more efficiently. SupTech is often contrasted with RegTech which consists of technology solutions designed to help regulated entities manage regulatory compliance. The SupTech Forum initiative follows last year’s initiative by the North Dakota Insurance Department to leverage blockchain technology to identify uninsured drivers. In that spirit, the working group’s aim is to leverage the experience of member regulators to promote effective technology adoption within the insurance regulatory community. Connecticut volunteered to share their experience using AI for contract review while Maryland volunteered to share their experience implementing recent projects involving digitization, expense tracking, and a ticketing system for consumer complaints.
The working group is also planning to host an InsureTech Forum at this year’s annual Insurance Summit in Kansas City in September. The InsureTech Forum would be a pilot project and thus the working group is seeking volunteers from the regulatory community as well as insurers and insurance start-ups. The purpose of the InsureTech Forum would be to hear pitches on innovative technologies and products being used by insurers and insurance start-ups. Following the Insurance Summit, the NAIC would provide a follow-up report.
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