Setting the Stage: AI Governance for Insurance in 2025

As insurers accelerate adoption of artificial intelligence, regulatory scrutiny and industry standards are evolving just as quickly. The National Association of Insurance Commissioners (NAIC) is evaluating a landmark AI Model Law designed to ensure fairness, transparency, and accountability across the insurance sector. Against this backdrop, Databricks and Deloitte are working together—combining advanced data platform technology and deep sector governance experience. Their collaborative approach demonstrates how insurers can not only meet new requirements but also unlock value at every stage of the AI lifecycle, turning trust and compliance into a competitive advantage.

Executive Conversation: Databricks & Deloitte on the NAIC’s Proposed AI Model Law

Databricks:
NAIC’s proposed AI Model Law is shaking up the insurance industry, and our collaboration comes at the right moment. Sitting down with Deloitte, we asked, Why is this RFI attracting so much attention? As our clients prepare for new regulatory demands, Databricks has invested in purpose-built frameworks such as the Databricks AI Security Framework and AI Governance Framework. These help organizations formalize security and transparency controls across the AI lifecycle—mapped to leading global standards—making it easier to meet new expectations for responsible AI in insurance.

Deloitte:
It comes down to trust, transparency, and the stakes for policyholders. Insurers know they need to demonstrate fairness, security, and compliance in their AI initiatives. The NAIC’s focus on governance and data risk reflects what organizations like Databricks and Deloitte are already doing: embedding scalable controls, auditable processes, and strategic risk frameworks that not only comply but help deliver market advantage.

How We Help Ensure Fair & Transparent AI Decisions

Databricks:
Let’s zero in on fairness and explainability. How is “best-of-breed” governance actually built for insurers?

Deloitte:
Our joint approach helps ensure AI-driven decisions are accountable and explainable from the ground up. That means continuous oversight, board-level responsibility, and independent model audits—plus robust vendor management. We align these controls with Databricks Unity Catalog, which centralizes data governance, enables secure access, and facilitates compliance reporting industry-wide.

Databricks:
Systems like real-time monitoring, automated bias detection, and audit logging—core capabilities of Databricks Mosaic AI Gateway—keep every step transparent for regulators and policyholders. This isn’t just theory; it’s built directly into the platform, so insurers can validate and explain every outcome, every time. Live audit trails mean insurers can trust what’s behind every AI-driven decision.

How We Help Manage AI Risk for Insurers

Deloitte:
New risks—systemic bias, explainability gaps, risks amplified by industry-wide model adoption—aren’t handled by legacy frameworks. Our teams work together to tailor industry controls, provide future-ready model governance, and refresh compliance as regulations change. Databricks' audit logging, model drift monitoring, and unified risk dashboards give carriers and oversight bodies real-time visibility and control.

Databricks:
This collaboration means insurers are not caught off guard. Our platform’s always-on monitoring, rapid detection of drift or anomalies, and seamless integration of risk reporting allow carriers to pivot fast. We solve for regulatory pain points right at the AI data source—whether it’s updating compliance registers or responding to new risk vectors in the market.

How We Help Deliver Insurance-Grade Data Quality & Security

Databricks:
Data readiness is the linchpin for responsible AI, and Databricks Unity Catalog makes high-quality, secure, and compliant data accessible—across silos, cloud boundaries, and vendor partners. Real-time pipelines, data validation, and enterprise controls reduce risk and unlock new business opportunities.

Deloitte:
We build the oversight frameworks that extract full value from Databricks’ governance and security stack. Deloitte implements insurance-specific controls for access, encryption, and incident response, while enabling a proactive culture of data and AI literacy. Together, we make sure “good enough” and “safe enough” are real—and audit-ready.

Databricks:
Sharing real-world learnings and best practices is central to our mission. Our clients benefit from ongoing training, transparent compliance features, and technology designed to keep them not only competitive but trusted.

Deloitte:
That collaborative mindset sets leaders apart. We invite everyone at ITC Insuretech to join the discussion, bringing questions, challenges, and stories to help shape the future of insurance AI.

Meet us at ITC Insuretech to see how Databricks and Deloitte build trusted, future-ready AI solutions—where governance isn’t just checkbox compliance, but the engine of long-term growth and insurer reputation.