Newsletter

Greetings from the Compact! As we move through another productive month, several key initiatives are nearing important development points, while new opportunities are beginning to take shape. With the conclusion of several summer deadlines, our focus is evolving to include both the advancement of ongoing projects and the exploration of future priorities. This edition highlights a number of those developments and the meaningful discussions that continue to move our work forward.

At the end of June, the Product Standards Committee (PSC) received suggestions for new and amended Uniform Standards. The committee is now focused on evaluating those recommendations and developing its 2027 uniform standards prioritization list. You will find additional information on the PSC's current activities and upcoming work later in this newsletter.

While setting priorities is only one part of the process, equally important is the ongoing exchange of ideas that helps inform the Compact's work. It was such a privilege seeing so many of you in person at the Boston Roundtable earlier this month. Thank you to everyone who participated and contributed to what was an engaging and highly valuable discussion. The Roundtable brought together commissioners, regulators, state legislators and industry and consumer representatives to exchange perspectives on emerging issues and opportunities facing the insurance industry. The candid dialogue and spirit of collaboration demonstrated throughout the event were a powerful reminder of the vision that led to the Compact's creation 20 years ago. It is encouraging to see the continued commitment among states and stakeholders to advance the shared goals of consistency, efficiency, and effective insurance regulation. A recap of the Roundtable discussions is included below.

Looking ahead, the Management Committee and Commission will convene in a virtual joint meeting on July 30 for a public hearing and committee vote. The hearing will focus on the Proposed Amendments to specific Individual Annuity and Long-Term Care Uniform Standards and will provide an opportunity for oral public comments on those proposals. Written comments will be accepted through August 3. You can also find a detailed agenda and meeting materials on our website.

We also hope you will join us, either in person or virtually, on August 13 for the next Joint Meeting of the Management Committee and Commission in Columbus, Ohio. To equip attendees for this meeting, the Insurance Compact is hosting regulator-only prep calls on August 6 at 12:30 ET and 1:30 ET and August 7 at 1:00 ET and 2:00 ET. These calls will offer background information on the agenda items scheduled for the upcoming Joint Meeting. We welcome you to visit our website to register for the prep call that aligns best with your schedule. Your participation and engagement are essential to the success of the Compact and the mission we continue to advance together. We look forward to connecting with you in the weeks ahead.

Sincerely,

Michael T. Caljouw was appointed as Massachusetts’ Insurance Commissioner by Gov. Maura Healey in October 2024. As Commissioner, he oversees the Massachusetts insurance market, an approximately $70 billion industry that historically ranks near the top 10 largest markets in the country and 27th globally. 

Commissioner Caljouw is committed to ensuring stable, affordable, and transparent insurance markets while safeguarding consumer interests. With more than three decades of experience in both public and private sectors, he has been the primary regulator of mergers and acquisitions across the insurance industry. He has led on emerging regulatory and policy issues, including comprehensive Massachusetts insolvency and cost containment laws. 

Prior to this role, he directed Blue Cross Blue Shield of Massachusetts’ regulatory and policy portfolio, supervising their contracts division and the implementation of laws and regulations. Previously, he spent a decade in Massachusetts government, serving as general counsel to the Massachusetts Division of Insurance and as deputy director, general counsel, and chief of staff for the Office of Consumer Affairs and Business Regulation. Additionally, he was senior counsel at a national law firm and chief of staff and legal counsel to the Massachusetts Senate Minority Leader.

Commissioner Caljouw has taught at Boston University School of Law and is a frequent lecturer on critical regulatory and policy issues. He chairs the Board of Advisors of the Rappaport Center for Law and Public Policy and is an active mentor to emerging leaders in public policy and insurance regulation. His contributions have been recognized with several honors, including the Better Government Award, Suffolk University Law School’s Outstanding Alumni Service Award, and the Arthritis Foundation’s Community Warrior Award. Commissioner Caljouw earned a Juris Doctor (J.D.) cum laude from Suffolk University Law School (Boston, MA) and a bachelor’s degree from Williams College (Williamstown, MA).

Compacting State Commissioners, regulators and legislators joined industry and consumer stakeholders at the Compact Roundtable on July 15 in Boston to discuss three key topics shaping the future of insurance regulation and product development: the evolving role of artificial intelligence (AI), improving consumer understanding of increasingly complex insurance products, and opportunities for the Insurance Compact over the next 20 years.

AI Adoption Continues to Evolve

AI was a central topic across all breakout sessions, with participants agreeing that adoption is accelerating throughout both industry and regulatory organizations. Most companies reported using AI tools in a limited and controlled manner to improve efficiency, support compliance reviews, analyze large volumes of information, assist with coding, enhance underwriting processes, and support employee training.

While attendees recognized AI’s potential to streamline workflows and improve consistency, there was broad consensus that technology still requires significant human oversight. Participants cited concerns around inaccurate responses, bias, outdated information, privacy, and cybersecurity. Several organizations described implementing governance frameworks, internal controls, and review processes to ensure that human judgment remains part of all critical decisions.

Regulators and companies alike expressed interest in AI’s long-term potential, particularly for compliance reviews, analyst training, and improving consistency across regulatory processes. However, the overall sentiment was that AI should serve as a tool to support—not replace—human expertise.

Improving Consumer Understanding Remains a Significant Challenge

The discussion on product illustrations highlighted widespread concerns about the increasing complexity of insurance products and the difficulty consumers face in understanding them. Participants noted that illustrations often contain highly technical information, making it challenging for consumers to evaluate products and make informed decisions.

A recurring theme was the need to simplify communications and place greater emphasis on consumer education. Industry and regulatory representatives agreed that illustrations should help consumers understand how a product works rather than overwhelm them with data and projections.

Product Standards Committee

The PSC met on June 30 to complete its review of the draft standard for the Additional Standards for Bonus Benefits for Individual Adjustable Life Insurance Policies. The committee agreed to expose the draft for public comment. In addition, the PSC received the 2027 requests for new and amended Uniform Standards at the end of June and held a call on July 28 to review those requests. During the call, they further discussed these suggestions and considered which requests to carry over from 2026. The PSC will hold a public call on August 18 to receive comments regarding prioritization of the items for the 2027 Uniform Standards Development list. 

Hannah became the Digital Content Manager for the Insurance Compact on June 1, 2026. Her role includes social media management, updating web information, preparing other digital communications, and developing training materials to support the involvement of Compact staff and Members in their respective roles. She currently serves on the conference planning committee for the Society of Insurance Research and is excited to graduate with her MBA in Management and Organizational Leadership this December from the University of Central Missouri. 

Hannah is a lifetime resident of Kansas City, MO. She is very passionate about serving her church. One of her favorite serving opportunities was teaching at a leadership camp in Cambodia with her father and sister a couple summers ago. When Hannah has a moment free from studying, she enjoys playing piano, biking, and touring art museums with her family.