PIA National to Congress — Reject the Big Beautiful Bill’s AI Moratorium

PIA National has sent a letter to the leadership of the U.S. Senate urging that body to remove language in the One Big Beautiful Bill that will place a 10-year moratorium on any state-level legislative or regulatory action relating to AI.

In the June 16th letter PIA National CEO Mike Skiados told senators the language of the One Big Beautiful Bill not only applies to the systems doing advanced learning but it also applies to a large group of processes that use analytical tools and software.

These are tools insurers and agents are already using for underwriting and claims.

“This overly broad definition could prevent state legislators and regulators from conducting appropriate oversight of insurers, whether the risk is related to AI or not,” Skiados said in an interview with Insurance Business America. “It would also increase costs and regulatory uncertainty for the targeted entities and states and potentially delay the implementation of needed consumer protections.”

On another front, Skiados said the federal government is not allowed to regulate anything in insurance.

“The business of insurance has been successfully regulated at the state level for over a century, and the McCarran-Ferguson Act of 1945 codified the longstanding exemption of the insurance industry from most federal regulation,” Skiados said. “The local expertise of state insurance regulators has proven beneficial for consumers, insurers, and the industry at large, thanks to their ability to quickly respond to emerging insurance risks associated with changing technologies, including artificial intelligence.”

The language in the bill comes from a push by Amazon, Google, Microsoft, and Meta (Facebook, Instagram, WhatsApp and others.). They want the federal government to come up with a unified approach to regulate AI. The tech heavyweights worry rules unique to the individual states could stifle innovation and slow down, or stop, competition with China.

Cory Weeks is PIA National’s manager of government relations and acts as the association’s press secretary. He said definite, and enforceable rules, need to be in place or insurers might stop investing in AI technology. That would leave consumers and businesses without safeguards when AI is applied to insurance rates, underwriting and claims.

“The risks can be significant for both the consumer and insurer,” Weeks told Insurance Business America. “There is no comprehensive federal legislation regulating its use, and it’s unclear whether future federal actions would even apply to insurance.”

On the insurance side of things, Weeks said AI is incredibly helpful to consumers and business. It has made huge improvements in underwriting, claims analysis and processing, and for customer service. With that said, Weeks noted that this technology presents a big challenge for the independent insurance agents of the PIA and for insurance agents everywhere.

“Agents are consumers’ most valuable resource for navigating a complex insurance market, and while AI has enabled agents to better serve customers, it has also given rise to direct-to-consumer platforms which don’t always provide enough guidance,” Weeks said.

Whatever regulations are settled upon, Weeks said they need to make sure AI tools promote transparency that provides safe, accountable and fair insurance practices.

In the letter, Skiados told the leadership in the Senate the National Association of Insurance Commissioners (NAIC) adopted a Model Bulletin in 2023 that requires insurers to implement AI governance programs in accordance with all existing state and federal laws.

It also offers a template by which insurance commissioners can communicate their expectations to their domiciliary carriers. As of May 2025, nearly 30 states had already adopted the NAIC’s model bulletin on the use of artificial intelligence systems by insurers.

Source link: PIA National — https://bit.ly/3TsHwcR

Source link: Insurance Business America — https://bit.ly/3TsK7U9