AI Regulation Faces Test on Life Insurance in Colorado

The life insurance industry could become one of the first sectors to be subjected to strict rules around the use of algorithms and models powered by artificial intelligence as regulators seek to protect consumers from discrimination and bias.

The Colorado Division of Insurance proposed new rules last month that would require state-licensed life insurers to provide an inventory of all AI models they use, establish strict governing principles on how they deploy algorithms, and submit to significant oversight and reporting demands.

“Our core goal is to make sure people aren’t being discriminated against,” said Colorado Insurance Commissioner Michael Conway. “To get ...