Regulatory interest in AI: A summary of papers published in the US and the Netherlands

We are seeing an increased interest in the area of artificial intelligence (AI) from regulators recently. In this blog post, I will provide a summary of regulatory papers published in the US and the Netherlands last year. In the US, the Casualty Actuarial and Statistical Task Force (CASTF) published a paper in May 2019 aimed at identifying best practices when reviewing predictive models and analytics filed by insurers with regulators to justify rates, and providing state guidance for review of rate filings based on predictive models. In the Netherlands, the Dutch supervisors Authority for Financial Markets (AFM) and De Nederlandsche Bank (DNB) published two articles in July 2019 discussing the use of AI in the Dutch financial sector and specifically among Dutch insurers. The CASTF paper begins by defining what a best practice is and discusses whether regulators need best practices to review predictive models.