NYDFS Issues Circular Letter on AI Use in Insurance

Jul 25, 2024, 02:18 PM

The New York Department of Financial Services (NYDFS) has issued new guidelines aimed at ensuring fair and transparent use of artificial intelligence (AI) in the insurance industry. These guidelines are designed to prevent discrimination in insurance underwriting and pricing processes. The guidelines mandate that insurers using AI must demonstrate that their models do not result in unfair discrimination against protected groups. This move, detailed in a NYDFS Circular Letter, is part of a broader effort to regulate the use of AI in various sectors to ensure ethical practices and consumer protection.