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The American InsurTech Council wants Congress to leave regulation of the use of artificial intelligence in insurance and annuities up to the states.
Scott Harrison, a principal at the council, is asking Congress to exempt insurance AI from any law that could limit how states regulate AI.
Putting state insurance AI regulators on a leash now could "jeopardize consumer protections at a time when AI is rapidly transforming the way insurance is developed, priced, marketed, underwritten and delivered," Harrison said.
What it means: An insurance technology policy group wants to see states stay in charge of AI policy.
The bill: The American InsurTech Council is reacting to a state AI moratorium provision included in Section 43201 of the "One Big Beautiful Bill Act" — the 1,118-page budget and tax bill that passed in the House last week.
The best-known parts of the package would do things like extend the current estate tax exemption levels and cut Medicaid funding.
Section 43201(c), a provision that has received less attention, would impose a limited moratorium on how states regulate AI.
States could impose the same kinds of rules on AI systems that they impose on other technology systems, but they could not impose special restrictions, fees or bonding requirements on AI systems for 10 years.
The backdrop: Federal law leaves regulation of the insurance business to the states.
Insurers, vendors and customer groups shape state regulations by working with the states and with the National Association of Insurance Commissioners.
Harrison's views: Harris said any broad limits on state regulators' work could disrupt the insurance regulatory framework.
Badly designed AI regulation limits could leave dangerous regulatory holes, Harrison added.
"Responsible AI governance in insurance must be rooted in the same principles that have protected insurance consumers in the U.S. for decades: transparency, accountability and state-based oversight," he said.
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