CT DOI Notice: Big Data Must Not Discriminate

Formal notice issued to insurers licensed by the Connecticut Insurance Department.
April 21, 2021

Connecticut Insurance Commissioner Andrew N. Mais issued a formal notice to insurers licensed by the Connecticut Insurance Department that their use of technology and Big Data must be in full compliance with federal and state anti-discrimination laws. The notice issued April 14 came from recommendations made by the department’s Advisory Council on Consumer Data.

The council identified the types of Big Data being collected, how the data is being used, legal and ethical issues with the use of Big Data, and how to better protect consumer information. “The growing use of Big Data and artificial intelligence is changing the insurance landscape in many ways,” said Mais. “

Meanwhile, panelists at the Regulation of Big Data and Predictive Models session at the virtual Life Insurance Conference hosted by LIMRA, LOMA, and LL Global said the growth of analytics, artificial intelligence (AI), and Big Data capabilities has legal and ethical ramifications for the insurance industry. Regulators and lawmakers have tried to stay one step ahead of potential trouble with the technology.

“Regulators are concerned with ... adverse impact on availability and affordability of insurance for protected classes, including race, color, creed, national origin, standard of domestic violence victims, past lawful travel, or sexual orientation in any manner, as well as other protected classes,” said Vincent Tsang, an actuary at the Illinois Department of Insurance and a member of the NAIC.

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