Navigating Colorado AI Law is Easy with Lumenova AI
Any organization utilizing AI for insurance in the state of Colorado must be compliant with SB21-169, or face serious penalties. Our robust AI governance platform makes this process easy.
- AI Governance – Simplified and Automated: Develop an AI governance and risk management strategy for your organization.
- Robust and Resilient AI Risk Management: Create AI governance policies, identify and measure risks, and ensure consistent monitoring and documentation.
- Automated Compliance Checks: Automate AI practice evaluations for regulatory compliance.
- Detailed Compliance Reporting: Create compliance reports with improvement areas and recommended actions to adhere to Colorado insurance law.
What is Colorado SB21-169?
To protect Colorado consumers from insurance practices which unfairly discriminate on the basis of a protected class, Governor Polis signed SB21-169 into law in July 2021.
The legislation regulates the way in which insurers may use big data systems, and holds them accountable for testing algorithms, predictive models, and other information sources to ensure they do not result in unfair discrimination “on the basis of race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identify, or gender expression.” Specifically, the law regulates the use of external consumer data and information sources (ECDIS) for the provision of insurance services.
With the Lumenova Responsible AI platform, insurers can address their internal governance and risk management needs both efficiently and effectively.
Scope of SB21-169
This Colorado AI law applies to insurers operating within the state, and regulates their use of “big data systems – including external consumer data and information sources, algorithms, and predictive models.” The state’s commissioner of insurance is expected to also release rules to apply to specific types of insurance.
Stay Ahead of the Curve
Colorado has been at the forefront in developing regulation to apply to the use of artificial intelligence. The state’s Division of Insurance is working on unique rules to apply to specific types of insurance, so it’s crucial to stay up-to-date on new regulations. If you work with us, the Lumenova AI team watches for those updates on your behalf.
How Colorado Insurers Should Respond
AI governance and risk management platforms for Colorado insurers should help to establish the following measures.
- Document values and objectives for ECDIS use
- Ensure oversight by a board or committee
- Establish monitoring roles for senior management
- Document governance functions
- Establish complaint mechanisms
- Create risk assessment rubrics
- Maintain an inventory of ECDIS use
- Describe testing mechanisms to minimize discrimination.
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