For insurance carriers, focusing on which large language model to use is less important than how and where the model is deployed. The National Association of Insurance Commissioners (NAIC) has issued guidance requiring insurers to govern their AI systems, including those from third parties, which emphasizes deployment and governance over model selection. Self-hosting models or using enterprise agreements with specific data protection clauses can address privacy concerns and regulatory compliance, as the harness or surrounding software layer is often more critical than the model's frontier capabilities for repetitive insurance tasks. AI
IMPACT Focusing on AI deployment strategy and regulatory compliance can optimize LLM use in insurance.
RANK_REASON Opinion piece discussing AI strategy for a specific industry.
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