Colorado Law Bars Insurance Discrimination By Data

July 27, 2021 by Steve Morelli

Colorado has a new law prohibiting insurance companies from disproportionately harming people based on race, sex, sexual orientation or gender identity, although it does not directly bar the use of credit histories and other data in setting individual rates.

The law tackles the issue of discrimination by proxy, when third-party data that is used to set rates also disproportionately affects particular groups adversely. It requires that insurers to demonstrate that their use of external data and algorithms do not discriminate against protected classes.

Click HERE to read the full story via INN

Originally Posted at InsuranceNewsNet on July 26, 2021 by Steve Morelli.