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Inside Olympia: Insurance Commissioner Patty Kuderer: Rep. Clyde Shavers on Regulating AI  

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“California is a wake up call for us, and I think that it is a natural consequence, if you will, of years and years and years of inaction at the federal level on the risk that climate change is posing.”

That’s Washington state’s new Insurance Commissioner Patty Kuderer, who won in November and was sworn into office Jan. 15. If Washington doesn’t prepare for worsening wildfires, homeowners may struggle to secure insurance, she says. Kuderer is pushing for a wildfire prevention grant program to safeguard homeowners and communities and the state’s insurance market.

“California’s experience underscores the urgency of addressing climate-driven disasters,” she said. “Wildfires not only destroy property and lives but also destabilize the insurance market, creating a ripple effect across communities.”

In addition to wildfire prevention, Kuderer touched on a legislative proposal focused on the use of artificial intelligence in the insurance industry. She noted that AI has the potential to revolutionize how insurers assess risk, process claims, and determine premiums. However, she also warned of potential risks, particularly regarding bias and the lack of transparency.

Plus –State Rep. Clyde Shavers is proposing new regulations requiring transparency and traceability in AI-generated content. The measures, he says, are needed to help maintain public trust without impeding industry growth. Shavers, a Democrat from Clinton and member of the state’s Artificial Intelligence Task Force, is championing House Bills 1168 and 1170 

“These bills address two fundamental principles we all share: transparency and accountability,” Shavers said. “As artificial intelligence starts creeping into different areas of our lives, we should know what is behind it.”

Both bills passed out of a House committee on 8-5 party line votes. Opponents expressed concern that the bills could limit AI-related investment in the state and that they were being advanced before the release of a report from the AI Task Force. A member of the task force, Kelly Fukai of the Washington Technology Industry Association, testified against both bills.