New York Insurers Can Evaluate Your Social Media Use—If They Can Prove Why It’s Needed
February 10, 2019 by Leslie Scism
New York’s top financial regulator is going to allow life insurers to use data from social media and other nontraditional sources when setting premium rates, though the insurers will have to prove the information doesn’t unfairly discriminate against certain customers.
New York is the first state to set specific guidance governing how life insurers use algorithms to comb through everything from homeownership records to credit scores and internet use in an effort to size up an applicant’s risk. At least a couple dozen insurers are employing these automated programs to speed up the buying process, facilitate online life-insurance issuance and boost stagnant policy sales.
The regulator’s goal, according to New York Financial Services Superintendent Maria T. Vullo, is to establish ground rules before the use of this information becomes more widespread.
“Because this is a rapidly evolving area in insurance underwriting, it was important for the department to create general principles now,” she said in an interview.
Click HERE to read the full story via The Wall Street Journal.
