As the regulatory landscape surrounding AI in the insurance industry continues to evolve, so too do the complexities that organizations must navigate. In this latest installment of Lunchtime BABLing, BABL AI CEO Shea Brown is joined by guest host and COO Jeffery Recker to explore the challenges and opportunities posed by these shifting regulations. With AI playing an increasingly pivotal role in assessing risk, optimizing claims processes, and enhancing customer service, the conversation provides valuable insights into how the industry is adapting to new compliance demands.
Key Regulations in AI Insurance
Discover the pivotal regulations shaping AI in the insurance industry, including New York State Circular Letter No. 7 and Colorado Regulation 10-1-1. Find out how these laws impact insurers and the compliance requirements they must navigate.
Risk Management & Governance
Shea and Jeffery outline practical steps for integrating AI into existing risk management frameworks. They discuss bias testing, model explainability, and the need for continuous validation to ensure fairness and reliability. The pair also highlight the value of aligning internal governance programs with recognized standards such as the NIST AI Risk Management Framework and the EU AI Act. These frameworks provide structure, accountability, and documentation that regulators increasingly expect.
Third-Party Vendor Oversight
AI compliance extends beyond in-house systems. Insurers are now required to apply enhanced due diligence to their vendors and technology partners. This includes verifying that third-party AI tools meet the same ethical and technical standards required internally. By improving vendor oversight and maintaining strong contractual controls, organizations can reduce their exposure to bias, privacy violations, and other regulatory risks.
Transparency and Documentation
Transparency remains one of the most critical components of AI compliance. Shea and Jeffery stress that insurers should document the full lifecycle of each AI system—from design and testing to deployment and monitoring. Clear documentation not only builds regulator confidence but also strengthens consumer trust. When policyholders understand how AI supports decision-making, insurers can demonstrate fairness and accountability more effectively.
Conclusion
In this Lunchtime BABLing episode, Shea Brown and Jeffery Recker provide actionable insights for professionals navigating AI in insurance. They explain how to manage compliance, reduce risk, and build systems that align with global standards. Whether you’re new to AI governance or refining an established strategy, this episode offers essential guidance for insurers and compliance officers working at the intersection of technology and regulation.
Where to Find Episodes
Lunchtime BABLing can be found on YouTube, Simplecast, and all major podcast streaming platforms.
Need Help?
For more information and resources on AI in insurance, or other forms of AI compliance, be sure to visit BABL AI’s website and stay tuned for future episodes of Lunchtime BABLing
