Baker Tilly Supports P&C Insurer in NAIC AI Governance Compliance and Maturity Assessment
A mutual property and casualty (P&C) insurance group managing over $2 billion in written premiums across personal and commercial lines proactively initiated alignment with the NAIC’s Model AI Bulletin, which sets regulatory expectations for AI governance, risk management, internal controls, and third-party oversight within the insurance sector. Seeking to validate their compliance and optimize their AI governance framework, the insurer engaged Baker Tilly for an external assessment. The engagement involved a comprehensive review of the insurer's governance model, risk controls, policies, and oversight mechanisms to ensure adherence to the bulletin’s mandates through documentation analysis and stakeholder interviews.
Baker Tilly conducted an AI maturity benchmarking against industry peers using its proprietary AI Maturity Model, evaluating capabilities across strategic, operational, and technical domains. This benchmarking highlighted the insurer's strengths and identified targeted opportunities for enhancing AI governance and responsible AI adoption. The final deliverables included a detailed findings report and an executive presentation outlining maturity ratings, compliance status, and a prioritized roadmap for evolving AI governance structures and scaling responsible AI practices.
This strategic assessment and benchmarking approach supported the insurer in confirming regulatory compliance while providing actionable insights for advancing AI initiatives. It reflects an increasing trend within the insurance industry to integrate AI responsibly, balancing innovation with governance and risk management imperatives. The report aids the insurer in positioning itself competitively by embracing AI advancements within a structured and compliant framework.
Baker Tilly’s expertise in combining regulatory guidance with industry benchmarking demonstrates value for insurers aiming to navigate evolving AI regulations effectively. By developing such tailored roadmaps, insurers can enhance their AI governance programs, ensuring robust oversight and readiness for ongoing AI innovation impacts. This engagement underscores the critical role of third-party assessments in validating AI governance aligned with regulatory expectations and broader industry best practices.