An emerging topic in the world of artificial intelligence and algorithms is the concern around proxy discrimination, in which members of protected class are disproportionately harmed, even if unintentionally. While the headlines might focus on big tech companies, the life insurance industry is certainly not exempt from such scrutiny. Several states have begun considering legislation and regulation that may require the industry to reconsider how data, predictive models and algorithms are used in risk assessment, accelerated underwriting, claims management and other insurance practices. Insurers will benefit from being proactive in verifying and demonstrating that their existing and evolving practices do not result in unfair discrimination. The presenters will explore what regulatory oversight is emerging, how the industry is responding and how companies may be affected.
At the conclusion of the session, attendees will be able to:
• Describe the concept of proxy discrimination and why it is an important topic to the life insurance industry
• Identify how emerging regulation and trends will affect their use of data and algorithms
• Recognize ways in which the industry will have to identify and manage proxy discrimination in their models and practicesThis session is presented by the Product Development Section. |
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