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Governing AI in Underwriting and Claims: Meeting NAIC Model Governance Expectations in 2026

2 minutes ago
2 min read

About REDE Consulting

REDE Consulting is a specialized Integrated Risk Management (IRM) and Governance, Risk & Compliance (GRC) advisory firm serving insurance carriers, MGAs, and InsurTech companies. We help insurers translate a complex, state-by-state regulatory landscape, spanning NAIC model laws, climate risk disclosure requirements, and emerging AI governance expectations, into practical, auditable programs that protect policyholders and reduce regulatory exposure, while freeing underwriting, claims, and compliance teams to focus on the business.


The Challenge

The NAIC has named AI model governance, innovation oversight, and cyber threats a core 2026 strategic priority, and regulatory expectations have shifted rapidly from treating AI as primarily a risk-management issue to viewing it as a core operational requirement. Insurers are now expected to prove that AI models used in underwriting and claims are explainable, fair, and auditable, not simply effective.


That shift is landing at a difficult moment: a recent industry survey found that 44% of insurance executives cite governance or compliance challenges as the top barrier to AI implementation, even as technology spending and AI adoption both continue to climb.


The Solutions

Meeting regulators where they now stand means embedding AI governance directly into the model lifecycle, from development through deployment and ongoing monitoring, rather than treating it as a separate compliance sign-off at the end.


  • Formal AI governance frameworks specific to underwriting and claims models

  • Documented explainability and bias testing that can stand up to regulator review

  • Ongoing model performance monitoring, not just pre-deployment validation

  • Governance structures aligned to how state regulators and the NAIC evaluate AI use


How REDE Consulting Is Helping

  • Designing AI governance frameworks tailored to underwriting and claims model use cases

  • Building model risk inventories to surface undocumented or shadow AI use

  • Developing explainability and fairness documentation aligned to regulator expectations

  • Establishing cross-functional AI oversight committees spanning actuarial, IT, and compliance

  • Providing ongoing advisory as NAIC AI evaluation approaches continue to evolve

Get in Touch

If your organization is looking to strengthen its IRM/GRC program, REDE Consulting can help you assess your current maturity, close critical gaps, and build a framework that scales across every state and line of business you operate in.


Reach out to our team at evita@rede-consulting.com to schedule a consultation and learn how REDE Consulting can support your insurance risk and compliance strategy.



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