Keep up with insureTech AI regulation

Prepare for Colorado’s Senate Bill 21-169 and build trust with your customers

What is Colorado SB 21-169?

Colorado Senate Bill 21-169, enacted in 2021, seeks to prevent unfair discrimination in insurance practices that are using customer data or algorithms. Since being enacted, the Division on Insurance has been developing rules for specific insurance practices and specific types of insurance. The law prohibits unfair discrimination resulting from the use of algorithms and predictive models and external consumer information and data sources and would require insurers to establish a risk management framework to identify and mitigate unfair discrimination.

Why partner with Holistic AI?

Our governance platform is an all-in-one solution, providing you with the tools you need to implement the requirements of Colorado SB 21-169

Minimize cost

Reduce the risk of financial and reputational damage from discrimination in your insurance practices

Maximize AI investment

Gain oversight of your AI inventory and enact policies to improve development and deployment efficiency

Build trust

Demonstrate a commitment to unbiased AI, reinforcing customer and stakeholder trust

Schedule a call

Navigate Colorado SB 21-169 with confidence

Ensure you’re compliant with Colorado’s SB 21-169 by establishing an effective risk management framework and conducting a bias audit of your automated systems.

Catalog AI systems

Gain visibility over your entire AI inventory at all system life-cycle stages and map their capabilities

Identify risks

Map and classify inherent risks as low, medium, or high

Mitigation strategies

Implement customized mitigation strategies based on the individual system’s risk profile, technology, and use case to reduce residual risk

Schedule a call


What practices are prohibited under the Colorado SB 21-169 legislation?

Insurers are prohibited from unfair discrimination in insurance practices and the use of external customer data and information sources or algorithms and predictive models that unfairly discriminate.

What are the requirements?

The Commissioner of Insurance is tasked with developing specific rules for specific insurance practices and types of insurance. Broadly, these rules must require insurers to:

  • outline the type of external customer data and information sources used by their algorithms and predictive models;
  • provide an explanation of how the external consumer data and information sources, and algorithms and predictive models are used;
  • establish and maintain a risk management framework designed to determine whether the data or models unfairly discriminate;
  • provide an assessment of the results of the risk management framework and ongoing monitoring; and
  • provide an attestation by one or more officers that the risk management framework has been implemented.

How does the legislation define an algorithm and a predictive model?

Under the legislation, an algorithm is defined as a computational or machine-learning processes are used to inform human decision-making in insurance practices. A predictive model is defined as a process of using mathematical and computational methods that examine current and historical data sets for underlying pattern and calculate the probability of an outcome.

What does unfair discrimination mean?

Unfair discrimination occurs when external customer data and information sources or algorithms or predictive models correlate with protected characteristics (race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression) and result in a disproportionately negative outcome for these groups that exceeds the reasonable correlation to the underlying insurance practice (in respect to losses and underwriting costs etc.).

Are there any exemptions to the Bill?

The SB21-169 legislation does not apply to title insurance, bonds executed by qualified surety companies, or insurers issuing commercial insurance policies. It does apply to insurers that issue business owners’ policies or commercial general liability policies if these policies have annual premiums of $10,000 or less.

Key Resources & Insights

Prepare for Colorado SB 21-169

Schedule a call with our team and get started on preparing your organization for compliance with Colorado SB 21-169

Schedule a call