Delaware Issues Artificial Intelligence Guidance for Insurers

Delaware Insurance Commissioner Trinidad Navarro has issued a bulletin to insurers operating in the state regarding the use of artificial intelligence (AI). The guidance emphasizes both the potential benefits and risks associated with AI, ensuring compliance with federal and state laws, including those related to unfair trade practices, claims settlement, anti-discrimination provisions, and ratemaking. 

"AI is transforming the insurance industry and is increasingly deployed across all stages of the insurance life cycle, presenting both opportunities and risks. By issuing this bulletin, we're putting insurers on notice that these systems may not circumvent our existing regulatory standards and that they must take all possible steps to ensure no consumer harm is created," Insurance Commissioner Trinidad Navarro said. 

Delaware's bulletin is adapted from the National Association of Insurance Commissioners' (NAIC) Model Bulletin, developed over several years and adopted in late 2023. Delaware is among 21 jurisdictions that implemented similar guidance in 2024, while 4 others have issued related regulations. 

Bulletin No. 148 also reaffirms the Delaware Department of Insurance's authority to request information on AI systems during market conduct investigations and examinations.