New York Takes ‘Gingerly’ Approach Regulating Insurers’ AI Risks

New York’s financial regulator is pushing to work cooperatively with insurers to eliminate unfair discrimination caused by the use of artificial intelligence models in underwriting practices.

The Empire State’s Department of Financial Services issued a proposal last week asking all insurers in New York to show how they oversee their use of AI tools. The guidance—together with a newly adopted regulation in Colorado and a bulletin from the National Association of Insurance Commissioners—offers a model for states across the country to scrutinize insurers’ AI practices, industry attorneys say.

State regulators are dialing up their demands for insurers ...