Regulators are hard at work
considering insurers' use of big data and analytics. The Big
Data (Ex) Working Group, chaired by Oregon Commissioner Laura Cali
Robison, adopted three charges for 2017. Briefly, these charges are
to: (a) consider any necessary changes to the existing regulatory
framework; (b) propose a mechanism to provide resources, and allow
states to share resources, to facilitate the review of complex
underwriting, rating, and claims models; and (c) assess data and
tools required for regulators to appropriately monitor the
marketplace. For each charge, the working group will first address
property and casualty insurance before moving to life and
health.
The working group's first
and current focus is on charge b. A small group of regulators has
drafted a proposed structure to help the states review complex
rating models for automobile and home insurance. This proposal
contemplates that the NAIC would hire a predictive analytics team
with predictive
