Regulations are catching up with AI innovation. Here’s how that shift impacts commercial insurance.
As AI reshapes commercial insurance, regulators are moving fast to set new standards. In a Carrier Management’sfeatured commentary, NeuralMetrics chief underwriting officer, Chris Schrenk, discusses the growing need for AI guardrails — and how the insurance sector can adapt before mandates take hold. Schrenk details how role-based AI co-workers can improve the insurance process for policyholders (by eliminating unnecessary questions) and insurers (by staying abreast of regulatory requirements and standardizing responses in consistent formats).
One key message stands out: regulatory frameworks are no longer optional. With the rise of agentic AI systems — tools capable of autonomous decision-making — companies face new obligations for transparency, accountability, and explainability. For commercial insurers, it means implementing clear documentation on how AI systems are trained, governed, and deployed.
The article points to several proposed and enacted regulations that signal a turning point. Colorado’s AI Act is one of the first in the U.S. to require insurers to assess bias and explainability in algorithmic systems. Meanwhile, the EU AI Act classifies many insurance use cases as “high-risk,” placing the onus on organizations to prove fairness and reliability before deployment. These aren’t just compliance hurdles but catalysts for better technology governance.
AI experts agree now is the time for the insurance industry to align technical innovation with ethical design. Building trust in AI tools requires more than performance metrics — it demands consistent oversight, embedded transparency, and a willingness to adapt as new laws evolve.
At NeuralMetrics, we see this evolution not as a limitation, but as a chance to lead. Our reasoning AI assistants are designed for regulatory alignment — from transparent data sourcing to embedded audit trails and human-in-the-loop decision paths. That means our systems are built not just for efficiency, but for integrity.
As the article notes, “The insurance industry can’t afford to be reactive anymore.” And neither can insurers’ AI systems.
Read the full article on how the regulatory landscape is evolving — and why responsible AI starts now.