Tuesday, June 30, 2020
Life Insurers Express Support For Artificial Intelligence Guidance To Safeguard Consumers
WASHINGTON – The American Council of Life Insurers (ACLI) commented today at a meeting of the Artificial Intelligence Working Group of the National Association of Insurance Commissioners, expressing its support for guidance that makes clear that artificial intelligence shouldn’t be used to make underwriting decisions or produce outcomes that otherwise would be prohibited by life insurance unfair trade practices law.
Represented by Bruce Ferguson, Senior Vice President for State Government Relations, ACLI provided the following statement regarding principles for consideration at the NAIC meeting later this summer. The guiding principles were adopted today by the Working Group and referred to the Innovation and Technology Task Force for further consideration.
Here is today’s statement from ACLI:
“ACLI believes racial discrimination in any form, directly or indirectly, is wrong. We support the goals of the principles and the Working Group’s decision to move forward with them along with a reference to proxy discrimination.
“The concept of proxy discrimination is rather new and based on the comments made on today’s conference call, means different things to different stakeholders. To life insurers, it means artificial intelligence shouldn’t be used to make underwriting decisions that would otherwise be prohibited by life insurance unfair trade practices laws as unlawful discrimination.
“Since these guiding principles will inform the work of other NAIC initiatives and state actions, it’s important that we reach a common understanding of what proxy discrimination means. We think this can be accomplished without delaying the important progress being made on these principles by the regulators, consistent with the goal of adoption of the principles by the Innovation and Technology Task Force at the Summer NAIC meeting and the full membership at the Fall NAIC meeting.”
The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 280 member companies represent 94 percent of industry assets in the United States.
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Date Posted: June 30, 2020
Document ID: NR20-017