AI governance for Washington insurers
The Washington State Office of the Insurance Commissioner issued Technical Assistance Advisory 2024-02 on April 22, 2024, adopting the NAIC Model Bulletin on the Use of AI Systems by Insurers. It reminds every insurer that holds a certificate of authority that decisions affecting consumers must comply with Washington insurance law, including the laws on unfair trade practices and unfair discrimination, regardless of whether an AI system supported the decision. The advisory recognizes the NAIC's 2020 Principles on Artificial Intelligence as an appropriate source of guidance and encourages each insurer to maintain a written AIS Program across the full insurance life cycle, from product development through claims. It also sets out the information the OIC may request during an investigation or market conduct action.
What Washington expects from your AIS Program
Washington adopted the NAIC model verbatim, so the program expectations match the national framework.
Governance
A written program with clear ownership. Senior management is accountable to the board, and a cross-functional body oversees AI across its whole life cycle.
Risk Management & Internal Controls
Controls at every stage of the model life cycle, from data sourcing through retirement, sized to the potential harm to consumers.
Third-Party AI Systems & Data
The insurer stays responsible for AI it did not build. Vendor relationships need diligence, contract rights, and the ability to produce evidence.
Documentation & Audit-Readiness
Section 4 spells out what an examiner can ask for. Treating that list as a standing requirement is what keeps a program defensible.
Legal authority
The Washington State Office of the Insurance Commissioner grounds the bulletin in laws it already enforces:
- Unfair Trade Practices ActChapter 48.30 RCW
- Property and Casualty Model Rating LawRCW 48.19.020
- Corporate Governance Annual Disclosure ActChapter 48.195 RCW
Who it applies to
The bulletin reaches every entity holding a Washington certificate of authority, including:
- Property and casualty insurers
- Life and annuity insurers
- Health insurers and HMOs
- All other insurers holding a Washington certificate of authority
State-specific changes: Washington issued the model as a technical assistance advisory rather than a numbered bulletin, and the advisory notes it is advisory only under RCW 34.05.230(1). The substance tracks the NAIC model, so an insurer building to the national framework is building to Washington's expectations.
Resources for Washington insurers
Start with these plain-language explainers and field guides.
What is the NAIC Model Bulletin on AI?
The NAIC Model Bulletin on the Use of AI Systems by Insurers is the template most states use to set AI governance expectations. Here is what it says and why it matters.
GuideWhat is an AIS Program?
An AI Systems Program (AIS Program) is the written program the NAIC Model Bulletin expects every insurer to maintain. Here are its four pillars and what each one requires.
GuideWhat are the NAIC AI Principles?
The NAIC AI Principles, adopted in 2020, are the foundation beneath every state AI bulletin. The five principles spell FACTS: Fair, Accountable, Compliant, Transparent, and Secure.
GuideAI in Insurance: Key Regulatory Definitions
The NAIC Model Bulletin defines the terms that carry legal weight, from AI System to Adverse Consumer Outcome to Model Drift. Here is what each one means for insurers.
ArticleInsurance Regulators Are Forcing AI Governance. Most Carriers Aren't Ready.
State insurance regulators and bar associations are sounding the alarm on AI in insurance. Legal and regulatory pressure is forcing insurers to operationalize AI governance, not just document it.
ArticleThe NAIC Bulletin Is the Floor Your Reinsurer Will Hold You To
Twenty-four jurisdictions have adopted the NAIC Model Bulletin on AI. Most carrier compliance teams are working to the regulatory text. Their reinsurers will use the same document as an evidentiary baseline at the next placement, and the cedent that meets the floor and stops there is preparing for the wrong audience.
Washington AI governance FAQs
What is Washington Technical Assistance Advisory 2024-02?
Which companies have to comply in Washington?
Can our AIS Program use the NIST AI Risk Management Framework?
How will Washington enforce it?
How does a Washington insurer get ready?
Sources
- Washington OIC: Technical Assistance Advisory 2024-02 (April 22, 2024)
- Washington OIC: Kreidler reminds insurers on proper use of Artificial Intelligence
- NAIC Model Bulletin on the Use of AI Systems by Insurers (Dec 4, 2023)
- Chapter 48.30 RCW (Unfair Trade Practices Act)
- RCW 48.19.020 (Property and Casualty Model Rating Law)
- Chapter 48.195 RCW (Corporate Governance Annual Disclosure Act)
Get audit-ready for Washington's AI advisory
Swept AI supervises your models and produces the AIS Program evidence Washington examiners can request.