The algorithm is now the carrier in the proxy.
Tokto gives the carrier CEO one record that ties every algorithmic decision, every adjuster prompt, every telematics SDK, and every rate filing to a policyholder and a state, ready for the board, the rating agencies, and the activist letter.
A federal jury convicts the carrier's algorithm on a 37,000-policyholder verdict. Plaintiffs file in 19 other states the next morning. A rating agency asks how the carrier governs AI-driven claims decisioning. The CEO is asked the same question by the board, by the largest reinsurance partner, and by the state insurance commissioner in the same week.
What you get with Tokto
- Every algorithmic decision tied to a policyholder, an adjuster, a state filing, and a rate plan.
- A complete record for the state DOI, the AG, the NAIC, opposing counsel, and the reinsurer on the same evidence.
- Policy applied at the model: no algorithmic adjustment outside the rate filing, no SDK telemetry without consent.
- Defensibility under class certification, state DOI examination, AG enforcement, and reinsurer audit at once.
How it works
Tokto governs the AI surface of the carrier from the CEO's seat. Pricing models, telematics SDKs, claim-triage co-pilots, and adjuster prompts become records at the moment of decision. The board, the rating agency, and the regulator read off the same trail.
When a federal jury convicts an algorithm, when a state AG opens a TDPSA-class enforcement, when a reinsurer asks for an AI-decisioning audit at renewal, the CEO answers each one out of one record. The narrative is consistent across the proxy, the press release, and the rate filing.
What goes wrong without it
- An algorithmic adjustment outside the rate filing reaches a federal jury. The proxy and the press release diverge.
- Telematics SDKs feed third-party models without consent capture. State AG enforcement becomes a board topic.
- Policyholder PII leaves the perimeter through a CRM voice-phishing attack. Rating agency review opens.
- An ambient claim-listening tool records insureds without consent. State UCL claims open with no documented controls.
In January 2025, the Texas Attorney General sued Allstate and subsidiary Arity for unlawfully collecting, using, and selling driving and location data from over 45 million Americans through SDKs embedded in Life360, GasBuddy, Fuel Rewards, and Routely. It was the first-ever enforcement action under the Texas Data Privacy and Security Act.
See how Tokto makes enterprise AI visible, governed, and accountable for CEO & Board in Insurance.
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