The American Insurance Association (AIA) has unveiled new legislation combining innovation and consumer protection while also addressing potential regulatory obstacles.
AIA officials said the proposal, initially presented to the National Association of Insurance Commissioners (NAIC) Innovation and Technology Task Force, would give state insurance regulators the freedom to waive some regulatory requirements for insurers who want to test innovative new products and technologies.
“With the U.S. at risk of falling behind other countries, AIA believes it is time for our regulatory system to adapt to our ever-changing, technology-driven world,” Mike O’Malley, AIA’s senior vice president for Public Policy, said. “This model bill would enable regulators to play an active role in overseeing the testing and implementation of the innovative insurance technologies, products, and services that consumers are demanding, without sacrificing prudent consumer protections. AIA’s proposal would preserve a level, competitive playing field and begin the process of identifying regulatory hurdles to innovation. We look forward to working with the NAIC and state legislators to advance this proposal in the coming months.”
AIA officials said the organization serves as the trade association for leaders in the property-casualty insurance industry, possessing a record of advocating on state, federal, and international issues for insurers and their customers.