Connecticut Requires Non-Discrimination Certifications from Insurers Using AI

3 May 2022
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On April 20, 2022, the Connecticut Insurance Department (the “Department”) released a notice titled, “The Usage of Big Data and Avoidance of Discriminatory Practices” (the “Notice”) addressed to all entities and persons licensed by the Department (“Licensees”). In the Notice, the Department raises concerns about the expanding role of Big Data in the insurance process and the potential that its use could result in unfair discrimination. In light of those concerns, the Notice reminds all Licensees of their obligation to ensure that their use of Big Data and AI complies with applicable anti-discrimination laws and requires all Connecticut domestic insurers to complete an annual data certification by September 1, 2022. The Notice is part of a larger trend whereby regulators are shifting the burden to insurers to show that they are not unfairly discriminating through their use of Big Data or AI and potentially positions Connecticut as the new forerunner in AI insurance regulation in the United States.