What Trump order limiting state AI regs means for insurers

President Trump’s December 11, 2025 executive order seeks to prevent states from enacting or enforcing laws that limit the use or development of artificial intelligence, in an effort to promote a unified and minimalist national AI regulation policy. Under the McCarran-Ferguson Act, state laws regulating the business of insurance take precedence over federal directives unless Congress explicitly legislates otherwise.

Hence, the executive order should have no direct effect on the regulation of AI use in the business of insurance. The real concern is the potential for congressional action, whether broadly stated or targeted at avoiding the time-lags and inefficiencies that can arise from the de-centralized nature of state-based regulation.