Case Studies

Property & Casualty Insurer Artificial Intelligence (AI) Risk, Governance & Controls

J.S. Held Acquires Clark Seif Clark, Strengthening West Coast Capabilities for Environmental Claims, Disputes, and Catastrophe Response

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Home·Property & Casualty Insurer Artificial Intelligence (AI) Risk, Governance & Controls

The Situation

A property and casualty insurer rapidly scaled the use of artificial intelligence (AI) across underwriting, claims, and fraud detection without a centralized governance framework, faced increasing regulatory and enterprise risk including:

  • Limited visibility into the full AI model landscape
  • Inconsistent validation, monitoring, and documentation practices
  • Exposure to bias, explainability gaps, and model drift
  • Misalignment with NAIC guidance and emerging regulatory expectations

How We Advised

J.S. Held technical experts were retained to design and implement an enterprise AI risk and controls program, including a full model inventory, risk-tiering methodology, board-level governance, and an AI-aligned model risk management framework. 

 

Significance
The program was designed to improve transparency into AI usage and to support enhanced regulatory readiness, which enabled the insurer to scale AI responsibly within a disciplined control environment. The AI-aligned model risk management framework resulted in:

  • Visibility into AI models
  • High-risk models removed or placed under enhanced controls
  • Successful internal audit outcomes
  • Improved regulatory readiness
  • Enabled safer, scalable AI adoption

Related Practice Areas

> Artificial Intelligence (AI) & Large Language Model (LLM) Governance & Security Testing
As artificial intelligence (AI) and large learning models (LLMs) become more prevalent in global business, we help organizations address accompanying governance and security risks. We rank evolving risks and develop plans to address, identify emerging AI opportunities, implement sound protocols and governance programs, and provide ongoing assessments, training, and support.

 

> Artificial Intelligence (AI)
As organizations scale their use of AI, they face critical questions around valuing AI assets, resolving disputes, managing risk, and building effective governance frameworks. We help clients navigate these questions with confidence, offering technical and business expertise across intellectual property (IP) valuation, litigation support, and responsible AI deployment.

Key Contact

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