The New York DFS laid out expectations within the letter for how insurers can develop and manage this technology in a way that mitigates any potential harm to consumers. Credit: Eyal Shtark/Adobe Stock
The State of New York's Superintendent of Financial Services, Adrienne A. Harris, issued a proposed circular letter for public comment on January 17 that aims to address and prevent discrimination when it comes to the use of AI and customer data by insurers.
The letter — available in full on the Department of Financial Services' website — acknowledges the benefits presented by utilizing consumer data and information services (ECDIS) and artificial intelligence to both insurers and customers by creating simplified, efficient processes. However, it also warns: " At the same time, ECDIS may reflect systemic biases and its use can reinforce and exacerbate inequality. This raises significant concerns about the potential for unfair adverse effects or discriminatory decision-making. ECDIS may also have variable accuracy and reliability and may come from entities that are not subject to regulatory oversight and consumer protections."
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