Get to know insurance advisory organizations, statistical agents

Elizabeth Tosaris, a Partner in Locke Lord’s San Francisco office, authored an article discussing advisory organizations and statistical agents, and detailing how the advent of big data has blurred the lines between regulated and unregulated enterprises in this space. Tosaris warns, “As more and more entities with valuable data gathering and analytical abilities enter the insurance marketplace, creating ‘black boxes’ that elude regulatory scrutiny, regulators and the NAIC may be called upon to reconsider what controls — if any — they want to impose over these entities and their processes. And, if state insurance departments do want to push an agenda of greater regulation and oversight of these entities, the existing structure for statistical agents and advisory organizations is an obvious starting point.”

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