Insurance - AI Under Examination: Regulators, Exclusions, and a Moved EU Deadline | PiTech Solutions Podcast The insurance industry exists to price uncertainty, and it is now being asked to price the most uncertain technology of our lifetime. In this episode, Mike and Laura examine three developments converging on carriers right now: a state regulatory examination tool reaching the end of its pilot, a corporate liability market pulling back sharply from AI exposure, and a European compliance deadline that just moved by more than a year. The NAIC AI Systems Evaluation Tool reaches its final pilot month. Twelve states have been piloting the National Association of Insurance Commissioners' AI Systems Evaluation Tool: California, Colorado, Connecticut, Florida, Iowa, Louisiana, Maryland, Pennsylvania, Rhode Island, Vermont, Virginia and Wisconsin. The pilot began in March 2026 and runs through September 2026, after which the NAIC plans to update the tool based on feedback, issue a revised version for public review, and consider it for adoption at its Fall National Meeting in November 2026. During the pilot, regulators are prioritizing high risk AI systems that could cause serious consumer or financial issues over low risk back office systems. The exposure is broad: NAIC surveys found 88 percent of 193 responding auto insurers, 70 percent of 194 home insurers and 58 percent of 161 life companies use, plan to use, or plan to explore AI and machine learning models, while a separate survey of 93 health insurance companies found 84 percent currently utilize AI or machine learning in some capacity. Carriers are adopting AI internally while excluding it from the policies they sell. A Center for Strategic and International Studies analysis published September 4, 2026 by Gregory C. Allen reported that state insurance commissioners approved more than 80 percent of carrier requests to exclude AI related damages from corporate policies as of April 23, 2026. Filers named include Berkshire Hathaway, Chubb, Travelers, AIG, Tokio Marine Holdings, W.R. Berkley, Great American and Fairfax Financial. Mapping 14 categories of AI risk against eight corporate insurance lines produced 112 combinations, roughly 80 percent of which came back excluded. The litigation curve explains the caution: cumulative United States lawsuits involving generative AI grew 978 percent between 2021 and 2025. A measurement layer is forming before the coverage layer. The Artificial Intelligence Underwriting Company announced a 40 million dollar Series A led by Ribbit Capital in September 2026, bringing total funding to 55 million dollars. Its AIUC-1 certification standard stress tests AI agents using 5,000 risk and attack combinations tailored to the business being assessed, developed with more than 250 security and risk leaders through the AIUC Consortium. Cursor, ElevenLabs, Harvey, KPMG, Lovable, UiPath and Fin have certified products against it. Europe's high risk deadline moved, but the requirements did not. Annex III, point 5(c) of the EU AI Act names AI systems used for risk assessment and pricing in life and health insurance as high risk. The EU's Digital Omnibus moved the compliance date for stand alone Annex III systems from August 2, 2026 to December 2, 2027, following a provisional agreement on May 6, 2026 confirmed by the Council on May 13, 2026. For multinational carriers, that inversion matters: the American clock is now the binding constraint, not the European one. Across all three stories the same question surfaces in different forms: can you demonstrate, with evidence, how your AI systems behave? PiTech Solutions helps organizations in regulated industries build the inventories, documentation and governance evidence that keep AI programs insurable and examinable. To learn more, visit pitechsol.com. #InsuranceAI #AIGovernance #NAIC #EUAIAct #RegulatoryCompliance
