Holistic AI has submitted written comments to Colorado’s Division of Insurance in response to a draft algorithm and predictive model quantitative testing regulation for underwriting in life insurance as part of the consultation process for SB169. This follows the announcement of the enforcement of Governance and Risk Management Framework Requirements for Life Insurers due to be enforced from 14 November 2023.
Introduced to prohibit unfair discrimination from the use of external consumer data and information sources, algorithms, and predictive models in insurance practices in Colorado, SB169 was passed in the middle of 2021 and due to be enforced from 1 January 2023 at the earliest.
The draft regulation requires insurers to carry out annual testing to determine whether data sources, algorithms, or predictive models result in unfair discrimination based on inferred race/ethnicity using logistic regression for eligibility determinations and linear regression for insurance premiums.
While the quantitative assessment, or internal bias audit, is a step in the right direction to ensuring that insurance practices do not unfairly discriminate, Holistic AI raised points of contention around:
"Governance doesn’t slow us down; it accelerates AI adoption, ensures compliance, and boosts our ability to realize digital goals."
The adoption of AI governance platforms delivers measurable impact:
"Without structured governance, businesses face mounting barriers, from trust issues to regulatory fines. Governance transforms AI into a scalable, impactful tool."
Holistic AI’s Governance Platform provides:
"By embedding governance, businesses can reduce ethical incidents by 40% and position themselves as leaders in AI innovation."
Ensure alignment with business goals and foster an AI-driven mindset
Build trust, minimize risks, and accelerate ROI on AI investments
Leverage purpose-built solutions designed for the complexity and scale of AI
Videos sourced from Microsoft Ignite 2024.
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