The insurer retains governance responsibility: Which conclusion | AIGP
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The insurer retains governance responsibility: Which conclusion best follows from these observations about

AIGP Understanding the Foundations of AI Governance Easy

Vendor involvement does not eliminate the insurer’s responsibility for governance, accountability, and deployment oversight.

The question

An insurer observes that its claims-scoring vendor performs testing, while internal staff approve deployment. Which conclusion best follows from these observations about third-party governance?

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  1. Testing replaces internal approval.
    Testing supplies evidence about system performance, but it does not substitute for internal decision authority or accountability.
  2. The vendor owns all governance decisions.
    Vendor testing demonstrates technical activity, not transfer of the insurer’s accountability for deployment decisions and oversight.
  3. Both parties have identical responsibilities.
    Shared involvement does not mean identical roles; operational delivery and organizational accountability can remain distinct.
  4. The insurer retains governance responsibility. ✓
    Using a third party does not remove the deploying organization’s duties to assign roles, oversee risk, and govern decisions.
The trap
Ask who retains authority and accountability after outsourcing, rather than who performs the technical work.

How to remember it

Vendor involvement does not eliminate the insurer’s responsibility for governance, accountability, and deployment oversight.

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