How to Tell if Your AI Insurance Platform Is Legit:

Understanding NAIC Registration in Australia

It's been more than a decade since the AI buzz became mainstream. And since that time, companies have been filling their promotional communications with mentions of their "AI-powered" to gain the attention of potential customers and investors.

There are numerous cases of companies claiming AI, when later it was found to be a loose reality, if not a flat-out lie. Builder.ai, backed by Microsoft, was found to have claimed machine learning when actually it was powered by hundreds of engineers. DoNotPay claimed to be an AI-powered service with "robot lawyers" able to generate legal documents, when in reality, it could not. Not only that, it was found that none of their technologies were even trained on the "federal and state laws, regulations and judicial decisions or on the application of those laws."

Thankfully, here in Australia, regulators are treating exaggerated AI claims similarly to greenwashing. The ACCC and ASIC are preparing to treat misleading advertising of AI capabilities strictly under Australian Consumer Law.  

We now have the Department of Industry Science and Resources' National Artificial Intelligence Centre verifying Australian AI companies, giving consumers a trusted source through which they can avoid the confusion of AI spin and hype.

What Is the National Artificial Intelligence Centre (NAIC)?

The National Artificial Intelligence Centre (NAIC) is a national recognition body that lists in its register verified AI providers operating in Australia. Backed by the Australian government, it helps businesses and individuals identify and work with trusted, verified AI providers.

While NAIC isn't a regulatory body, its role as a national register of AI companies helps to highlight AI companies that meet recognised standards for transparency, capability and responsible use of artificial intelligence.

For insurance professionals and brokers, this means that if an AI platform like Raindrop is listed with NAIC, it signals that:

• The company's AI technology is genuine and explainable

• There's external validation of its capabilities and practices

• It meets recognised industry benchmarks for responsible AI use in Australia.

Put simply, NAIC registration matters for AI solutions because it helps brokers and insurance firms separate true AI-powered platforms from those using AI as a buzzword. 

How to Check if a Company Is Registered on NAIC

Checking the legitimacy of an AI offering via NAIC is extremely simple. Through the NAIC directory, brokers and insurance professionals can search for any tool they are researching. If it's in the directory, it's verified. If it's not, it's not.

If you look at the "financial and insurance" industry filter, Raindrop is the only genuine AI insurance provider on the register.

Questions to Ask Your AI Insurance Platform Provider About Their AI

No business or professional should be expected to understand AI technically, just as we have never been expected to fully understand the coding of the internet. Still, there are questions you can ask to make sure it is legitimate, safe and beneficial to your business.

• Is your platform officially registered or recognised by any national AI body, such as Australia's National Artificial Intelligence Centre (NAIC)?

• Can you explain, in simple terms, how your AI processes insurance policies? For example:

  • Does it use semantic analysis?

  • Can it visually compare policies?

  • Does it offer real-time regulatory updates?

• Is the AI explainable? How does your platform ensure transparency in its results?

• Does your AI-driven system rely on human oversight?

• How do you ensure accuracy and reliability in your AI outputs?

• How often is the platform updated with new features and regulatory changes?

Clarity in Every Drop

At its core, Raindrop empowers insurance professionals, enabling them to make confident, informed decisions and deliver superior client service. 

For brokers, Raindrop saves time and reduces errors by turning dense policy documents into clear, side-by-side comparisons they can trust. Underwriting agencies can analyse and structure complex policy wordings faster, supporting precise risk assessment and pricing. And insurers can gather deep policy insights and competitive benchmarking, helping to refine products and identify market gaps.

Start today.