In her recent article for the Federation of Regulatory Counsel (FORC), “Regulatory Considerations for the Use of Artificial Intelligence and Technological Advancements in the Transaction of Insurance,” Jennifer Kraham, a partner at Kutak Rock, examines how artificial intelligence and technological advancements are reshaping the insurance industry and the regulatory considerations that accompany those changes.

In the article, Jennifer discusses how AI and new technologies have the potential to improve efficiency, accuracy and consumer access in insurance transactions, while noting that many state insurance laws have not kept pace with these developments. As a result, insurers and insurance agents may face regulatory challenges when using tools such as online applications, cloud-based recordkeeping systems, and AI-driven platforms.

Jennifer explores how existing requirements related to recordkeeping, agent appointments, designated responsible licensed producers, and unfair trade practice laws were drafted with traditional, human-centered insurance models in mind and may not clearly account for the growing use of AI. She highlights areas where this disconnect could lead to inadvertent noncompliance and regulatory uncertainty.

The article also identifies opportunities for regulators and industry stakeholders to modernize state insurance laws in ways that recognize current business practices while maintaining strong consumer protections and effective regulatory oversight. Jennifer emphasizes the importance of continued dialogue and thoughtful reform as technology continues to influence how insurance is transacted.

Jennifer regularly assists clients on a national level in connection with the acquisition and sale of insurance companies and other regulated entities, the preparation and submission of regulatory filings, defending against complaints from regulators, and analyzing coverage issues. Her practice encompasses all aspects of insurance regulation, including assisting clients with obtaining regulatory approval for the formation, acquisition, merger and expansion of insurers and other regulated entities.