New York Finalizes Policy Targeting Bias in Insurers’ Use of AI

New York’s Department of Financial Services on Thursday adopted final guidance aimed at preventing algorithmic discrimination in insurance, including a requirement for carriers to keep close tabs on their use of external data sources.

New York is among the states seeking to address concerns that insurers’ use of AI and external consumer data and information sources in underwriting and pricing could lead to unfair or unlawful discrimination.

The use of external data and AI systems “can benefit insurers and consumers alike by simplifying and expediting insurance underwriting and pricing processes, and potentially result in more accurate underwriting and pricing of ...