New York Eyes Broader Scrutiny of Insurers’ AI Use to Curb Bias

New York regulators are targeting a wide range of insurers for their use of predictive artificial intelligence models that the state says may lead to discrimination, expanding guidance that was previously limited to life insurance companies.

The state’s Department of Financial Services on Wednesday outlined its expectations for insurers relying on algorithms and external consumer data in underwriting practices. Insurers’ use of AI models can help them price policies more accurately, but it can also fuel unfair discrimination against undeserved communities and turbulence in New York’s insurance market, the regulator said.

“Technological advances that allow for greater efficiency in underwriting ...