Kentucky Department of Insurance Reviews AI and Telematics Impact on Underwriting and Claims
The Kentucky Department of Insurance is actively examining the influence of telematics, artificial intelligence (AI), and alternative data on insurance underwriting and claims processes. This review is driven by the rise of insurtech, which introduces new considerations regarding data usage and algorithmic fairness. The department's primary goal is to ensure that technological innovation in the insurance sector does not compromise consumer protections. This initiative is part of a broader effort to adapt regulation to evolving trends, including demographic shifts, climate patterns, and technological advancements. The department also monitors emerging risks such as cyber threats and the impact of climate-related events on claims frequency and severity, particularly in flood-prone areas. Collaboration among insurers, agents, and policymakers is crucial for adapting regulations, with the department hosting listening sessions and working with advisory committees to gather input on rating methodologies, underwr...
