b'Technology | Insurtech| Regulatory DevelopmentsThe Principles on Artificial Intelligence, which arenon-discriminatory basis, nine categories of value general guidelines on regulatory expectations withadded services, provided the value added respect to the use of AI in the insurance industry,product or service relates to the insurance cover-are based, in part, on the Organisation forage, and the cost to the carrier or producer of Economic Co-operation and Developmentsproviding the value added service/product is (OECD) AI principles, adopted by 42 countries,reasonable in relation to the policy premium. including the US. The principles outline five keyThese value added services include those thattenets, summarized by the acronym FACTS:are primarily designed to satisfy one or more of Fair and Ethical. Respecting the rule of law andthe following: implementing trustworthy solutions. Encourages1. Provide loss mitigation or loss control; industry participants to take proactive steps to avoid proxy discrimination against protected2. Reduce claim costs or claim settlement costs; classes when using AI platforms. 3. Provide education about liability risks or risk of Accountable. Responsibility for the creation,loss to persons or property; implementation and impacts of any AI system. 4. Monitor or assess risk, identify sources of risk, or Compliant. Have knowledge and resources indevelop strategies for eliminating or reducing risk; place to comply with all applicable insurance laws5. Enhance health; and regulations.Transparent. Commitment to responsible disclo- 6. Enhance financial wellness through items such as sures regarding AI systems to relevanteducation or financial planning services; stakeholders as well as ability to inquire about7. Provide post-loss services; and review AI driven insurance decisions. 8. Incent behavioral changes to improve the health or Secure/Safe/Robust. Ensure reasonable level ofreduce the risk of death or disability of a customer traceability of datasets, processes and decisions(defined for purposes of this subsection as policy-made and implementation of a systematic riskholder, potential policyholder, certificate holder, management process to detect and correct riskspotential certificate holder, insured, potential associated with privacy, digital security and unfairinsured or applicant); or discrimination. 9. Assist in the administration of the employee or In addition, on December 9, 2020, the NAICretiree benefit insurance coverage. Executive Committee/Plenary adopted amendmentsIn addition, the amendments to the UTPA, allow to anti-rebating provisions of NAIC Unfair Tradeinsurers and producers to offer or give non-cash Practices Model Act (UTPA). The amendmentsgifts, items, or services, including meals to or were designed by the Innovation and Technologycharitable donations on behalf of a customer, up to a Task Force after careful consideration of industrystipulated cash value (for personal lines) or up to an claims that the anti-rebating provisions were out- amount that is reasonable in relation to the policy dated and hindering insurers and producers abilitypremium (for commercial lines).to use technology to improve outcomes for insureds. The amendments to the UTPA allow insurers and producers to, among other things provide, without charge or at a reduced cost, on a 96 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'