Hot Topics in U.S. Insurance Regulation (Update)

This webinar will focus on the following: (1) the use of Artificial Intelligence (AI) by insurers, and how state insurance regulators and legislators are responding; (2) challenges posed by climate change to the insurance industry, along with the ongoing and anticipated regulatory reaction; (3) regulatory developments in the cyber insurance market following emerging trends in the cyber threat landscape. More specifically, Elliott M. Kroll, Partner, and Richard Liskov, Senior Counsel, at ArentFox Schiff LLP, will discuss the fundamentals of AI and its applications in underwriting, rating, and claims processing, and using complex AI models within regulatory frameworks. In addition, the presenters will address the impact of climate change in the insurance industry and strategies for adapting to it, as well as how the NAIC and individual state regulators are responding to the impact of global warming on insurance. Lastly, this program will tackle the challenges faced by insurance companies in mitigating cyber incident regulatory risk amidst stringent data regulations and rising cybersecurity threats.

Learning Objectives:

1. Discuss the fundamentals of Artificial Intelligence (AI) considering its significance in the insurance industry, its potential to drive innovation, and real-world examples of AI applications in insurance such as claims-processing, underwriting, and rating
2. Analyze concerns regarding the integration of complex AI models in regulatory-compliant environments, current and emerging trends in AI that are shaping the future of the insurance sector, and strategies and 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
3. 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
4. Understand how the NAIC and individual state insurance regulators are responding to industry moves to handle the effects of global warming
5. Discuss the new state and federal cybersecurity regulations being enacted to better protect shareholders and consumers against cyber threats following rising global security concerns
6. Identify restrictions on insurance coverage for regulatory risk due to concerns regarding costs of regulatory compliance and investigations and strategies policyholders are enacting to identify gaps in their existing cyber policies and prioritize prevention to mitigate privacy risks