California Insurance Commissioner Lara Initiates Statewide Effort to Establish AI Consumer Safeguards in Insurance
California Insurance Commissioner Ricardo Lara has launched a statewide initiative to develop consumer safeguards for the use of artificial intelligence (AI) in the insurance sector. This effort includes a public workshop and an industry survey, both designed to gather input on how AI technologies are being deployed and to inform future regulatory approaches concerning transparency, accountability, privacy, and fairness. The California Department of Insurance is inviting consumers, insurance companies, researchers, technology developers, advocates, and the public to participate. The initiative aims to address the risks associated with AI, such as inaccurate outcomes, privacy compromises, and potential bias, while also allowing consumers to benefit from innovation. The Department emphasizes that while AI can improve efficiency and customer service, it must be properly designed, tested, monitored, governed, and overseen to prevent negative impacts on consumers.
