Two insurance coverage regulatory legislation specialists say the hassle that created the brand new Colorado life insurance coverage know-how unfair discrimination regulation will probably increase to have an effect on annuities.
The Colorado regulation will even do extra to have an effect on how insurers function than different state efforts to deal with issues about new types of decision-support know-how, the legal professionals predicted.
Paige Waters, a companion at Locke Lord, and Stephanie O’Neill Macro, an lawyer of counsel with the agency, talked concerning the new regulation of exterior shopper knowledge and data sources, or ECDIS, in an e mail interview.
What it Means: Colorado’s necessities may have an enormous impact on how monetary companies regulators method synthetic intelligence, machine studying, conventional analytical techniques and any new types of know-how.
The Regulation: The brand new guidelines require insurers to arrange a governance system for stopping race-based discrimination involving ECDIS.
Regulators outlined ECDIS to incorporate “credit score scores, social media habits, areas, buying habits, house possession, academic attainment, licensures, civil judgments, court docket information, occupation that doesn’t have a direct relationship to mortality, morbidity or longevity danger, consumer-generated web of issues knowledge, and any insurance coverage danger scores derived by the insurer or third-party from the above listed or related knowledge and/or data supply.”
What’s Totally different: Colorado is the primary state to deal with use of AI and different decision-support know-how in insurance coverage via a full-scale regulation, relatively than a bulletin, Waters and Macro stated.