Regulators Look at Potential Bias in Life-Insurance Algorithms

Colorado is crafting rules as insurers use data science to speed up applications

Northwestern Mutual wants half of the life-insurance policies it issues by year-end to be automated.Photo: Kris Tripplaar/Sipa/Associated Press

State regulators are pushing back on U.S. life insurers’ use of data science to speed up cumbersome application processes, citing concerns that artificial intelligence could unfairly discriminate against minorities.

Colorado’s Division of Insurance has begun crafting regulations under a new state law restricting insurers’ use of algorithms, predictive models and the information fed into them in a far-reaching effort closely watched by the industry. 

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