CONNECTICUT INSURANCE DEPARTMENT LEADS THE WAY IN
AI REGULATION WITH MODEL BULLETIN APPROVAL

HARTFORD, CT –Connecticut Insurance Department (CID) Commissioner Andrew N. Mais announced today the release of a bulletin addressing the use of Artificial Intelligence (AI) systems by insurers licensed to do business in Connecticut. Bulletin No. MC-25 sets forth guidelines for insurers’ governance of the development, acquisition, and use of certain AI technologies and systems, and advises insurers of the type of information and documentation that the Department may request in the context of market conduct investigations and examinations. Significantly, Bulletin No. MC-25 underscores the CID’s commitment to fostering innovation while prioritizing consumer protection and regulatory compliance and aligns Connecticut with the National Association of Insurance Commissioners (NAIC) Model Bulletin on the Use of AI Systems by Insurers adopted in December 2023.

"Connecticut is one of the first states to proactively address the challenges and opportunities arising from the integration of AI in the insurance industry," said Commissioner Mais. “In the ever-evolving realm of technology, this bulletin provides insurers with guidance to responsibly navigate the complexities of AI, and helps ensure accurate, fair, and transparent outcomes for consumers."

Key Highlights:

• Reminds insurers that decisions supported by AI systems must comply with all applicable insurance laws and regulations.
• Encourages innovation while recognizing potential risks such as inaccuracies, unfair discrimination, data vulnerability, and lack of transparency.
• Insurers are expected to develop, implement, and maintain a written program (AIS Program) for the responsible use of AI systems.
• Outlines specific guidelines for governance structures, accountability, monitoring, audit protocols, and training within the AIS Program.
• Requires Connecticut domestic insurers to complete the Artificial Intelligence Certification by September 1, 2024, and annually thereafter.

Connecticut licensed insurers are urged to thoroughly review the CID's bulletin to ensure alignment with the state's regulatory expectations. The CID remains committed to collaborative efforts with insurers to navigate the dynamic landscape of AI technologies responsibly.

For more information, or questions related to Bulletin No. MC-25, please contact the Market Conduct Unit at cid.mc@ct.gov. View the full bulletin, here: https://portal.ct.gov/cid/-/media/CID/1_Bulletins/Bulletin-MC-25.pdf.

For insurance related questions, please visit the Connecticut Insurance Department website or contact us via email at insurance@ct.gov or call the Consumer Affairs Helpline at 860-297-3900.

Contact: Mary Quinn
Communications, Director
Cell: (959) 529-4904
Mary.Quinn@ct.gov