Hot Topics in U.S. Insurance Regulation

This webinar, presented by Elliott M. Kroll, Partner, and Richard Liskov, Senior Counsel, at ArentFox Schiff LLP, will focus on three main topics. First, the program will discuss the use of Artificial Intelligence (AI) by insurers, and how state insurance regulators and legislators are responding. Second, the course will analyze the challenges posed by climate change to the insurance industry, along with the ongoing and anticipated regulatory reaction. Lastly, the presenters will address the critical need for fostering financial literacy in the insurance industry so that current and future policyholders and claimants are sufficiently knowledgeable and informed on how personal lines insurance policies work.

Mr. Kroll and Mr. Liskov will delve into the following in detail:

• Fundamentals of AI and its applications in underwriting, rating, and claims processing;

• Using complex AI models within regulatory frameworks;

• The impact of climate change in the insurance industry and strategies for adapting to it;

• How the NAIC and individual state regulators are responding to the impact of global warming on insurance; and

• Importance of fostering financial literacy among current policyholders and claimants of auto and homeowners/renters' policies and life insurance and generally what role states are playing to promote personal financial literacy-including a basic understanding of how those insurance policies work--among high school and college students who will become policyholders and claimants in the years to come.

Learning Objectives:

1. Review the fundamentals of Artificial Intelligence (AI) considering its significance in the insurance industry and its potential to drive innovation, and analyze real-world examples of AI applications in insurance such as claims-processing, underwriting, and rating

2. Analyze possible challenges of using complex AI models in regulatory-compliant environments; and current and emerging trends in AI that are shaping the future of the insurance sector

3. Discuss strategies/solutions insurers are employing to adapt to challenges e.g., offering innovative coverage options and collaborating with regulators, or withdrawals from certain geographic markets because of the frequency and severity of property claims

4. Evaluate the financial implications of climate change on insurance companies, including the potential for increased claims, changing underwriting practices, and the need for sustainable investment strategies, and understand how the NAIC and individual state insurance regulators are responding to industry moves to handle the effects of global warming

5. Analyze what personal financial literacy means, how various states are promoting it, and its significance in the context of insurance and explore emerging trends in financial literacy education and technology that can enhance engagement/learning among current and future policyholders/claimants