Frances M. Green, Of Counsel in the Employment, Labor & Workforce Management practice, in the firm’s New York office, authored an article in InsuranceNewsNet, titled "Insurers in the Crosshairs Over AI."
Following is an excerpt:
On July 11, the New York State Department of Financial Services issued its Final Circular Letter regarding the “Use of Artificial Intelligence Systems and External Consumer Data and Information Sources in Insurance Underwriting and Pricing.”
NYSDFS published its Proposed Circular Letter in January, calling on insurers and others in the state that use external consumer data and information sources and artificial intelligence systems, to assess and mitigate bias, inequality and discriminatory decision making or other adverse effects in the underwriting and pricing of insurance policies.
Although NYSDFS recognized the value of ECDIS and AI in simplifying and expediting the insurance underwriting process, the agency wanted to mitigate the potential for harm. And if the opening section of the final letter is any indication, NYSDFS did not back down. …
