"You need all the people in the room to build a practical governance structure so that it makes sense."
Mary Block, Director of Insurance Regulation at the Vermont Department of Financial Regulation
February 2025 | What's new this month
Gartner® Thought Leadership: Executive AI Governance Playbook
AI is changing quickly in the insurance industry. Carriers are trying to use it to get more value from functions such as underwriting, claims processing automation, and customer experience. Insurance industry and state deadlines for AI systems to comply with regulations are also looming. However, high expectations for AI might not be realized without balancing value and risks via well-thought-out AI governance. According to Gartner®, a good AI governance program should be able to:
Create, maintain, and enforce AI governance policies and controls
Create and develop an AI governance operating model
Design, develop, integrate, test, and deploy governance oversight systems
Monitaur can help you define, manage, and automate the operations of your AI governance program immediately. Get started with great governance today by reviewing this playbook.
This complimentary playbook via Gartner is only available from Monitaur for a limited time!
Top 5 governance considerations for Agentic AI
Agentic AI has captivated enterprises and computer science communities as the next frontier in artificial intelligence. The concept of AI Agents is not new, and has been used within academia and in targeted places in industry for decades. However, what's truly new isn't the concept of agents performing tasks (like RPA), multi-step AI programs (such as DeepMind and AlphaGo), or route-based optimization tools (like Google Maps). The new idea in Agentic AI is the integration of an LLM as the central reasoning component.
The rapid growth of AI is outpacing effective governance, researchers have warned, with business leaders desperate for more clarity on regulation. NTT Data’s Responsibility Gap Survey of C-suite executives concludes that there's an urgent need for stronger AI leadership, balancing innovation with responsibility. Eight in ten said a lack of clear policies is preventing them from scaling generative AI initiatives, and that unclear government regulations are hindering AI investment and implementation, leading to delayed adoption.
Artificial intelligence is making inroads into many aspects of the insurance industry — from underwriting to onboarding to filing claims. But one of the dangers of AI is that it is expanding faster than the industry and individual advisors can keep up.
The financial services community must collaborate to address the risks of AI and promote ethical decision-making, said Azish Filabi, managing director of The American College Cary M. Maguire Center for Ethics in Financial Services. She has spoken and written on the ethical principles guiding the use of AI in financial services, emphasizing AI’s impact on clients and advisors.
The European Union has tightened its stance on artificial intelligence, banning the use of AI-driven emotion recognition systems in workplaces and outlawing manipulative AI techniques on websites. The latest European Commission guidelines, published last week, clarify prohibited AI practices under the EU Artificial Intelligence ACT, which will be fully enforceable by August 2, 2026. Under the new restrictions, AI systems that infer emotions using biometric data, such as facial expressions, voice patterns, keystrokes, body postures, or movements, are now banned in workplaces, except for medical or safety-related applications.
AI regulations are tightening, bringing new compliance challenges, especially for high-risk systems. Marian Waldmann Agarwal and Marijn Storm, partners at law firm Morrison Foerster, explain how EU and Colorado AI regulations are reshaping governance and security requirements for organizations.
AI is already contributing substantial value to many insurers by delivering savings and efficiencies while acting as a catalyst for growth. In recognition of its undoubted future importance, several use cases continue to gain traction as insurers explore potential areas of the value chain where a competitive advantage can be exploited.
As AI continues to permeate the sector, its implications for PI are becoming increasingly significant. Legal professionals, consultants, and other service providers must, therefore, navigate the complexities introduced by AI, particularly regarding coverage limitations, liability issues, and evolving policy wordings.
In what seems like the blink of an eye, AI (artificial intelligence) has gone from the stuff of science fiction to a powerful force that is transforming our world. Reshaping the way we live, work, and interact. Fueling breakthroughs in education, healthcare, agriculture… But also testing our shared values and rights. The power of AI carries immense responsibilities. Today, that power sits in the hands of a few. While some companies and some countries are racing ahead with record investments, most developing nations find themselves left out in the cold. This growing concentration of AI capabilities risks deepening geopolitical divides.
