Pennsylvania Issues AI Use Guidelines to Auto Insurers in 2024–2025
On April 6, 2024, Pennsylvania Insurance Department issued Notice 2024‑04, requiring insurers to align their use of AI and predictive systems with state laws — including transparency, fairness, and accountability.
Key Requirements under PID Notice
- Ensure AI models do not violate anti‑discrimination statutes
- Maintain explanatory transparency for consumer decisions
- Implement governance, testing, and oversight protocols
- Ensure humans remain involved in final underwriting decisions
What It Means for Policyholders
Consumers are protected against unfair AI‑driven pricing or claim denials. Insurers must now justify algorithmic outcomes and remain auditable by regulators.
Broader Industry Context
Pennsylvania adopted the NAIC model guidance on AI (Dec 2023), joining other states like Illinois and New York — reinforcing its leadership in consumer protection.
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