Colorado Tries to Stop Insurance Discrimination in Age of AI

Insurance is increasingly relying on computers to make decisions that affect people—which means industry regulators must try to understand and prevent discrimination in those AI systems.

Colorado is among the states furthest ahead on regulating algorithmic discrimination in insurance, and officials there are wrestling with thorny questions: What constitutes unfair discrimination when artificial intelligence is making insurance decisions? And how do you measure it without collecting data on the race of policyholders?

The state’s law sets out to protect consumers from unfair discrimination by insurance carriers, and zeroes in on how companies are using the plethora of data available on ...