Insurers in New York have just received a gift: clarity.
Yesterday, the New York State Department of Financial Services‘ Superintendent issued a groundbreaking circular.
This guidance, which the FairPlay team is proud to have collaborated on, provides a clear roadmap for insurers seeking to leverage AI and alternative data responsibly in high-stakes applications.
In a nutshell, NY is saying you can use AI and alternative data in insurance underwriting and pricing but with essential safeguards:
Proxy Detection: Identify and mitigate potential biases in your data.
– Fairness Testing: Ensure your models are fair and unbiased.
– Less Discriminatory Alternatives: Seek alternative algorithms with lower bias if possible
– Model Governance & Documentation: Maintain robust oversight and documentation.
This is entirely achievable.
I know because FairPlay customers, including some of the world’s largest banks, do it every day.
Our fairness-as-a-service solutions were purpose-built for this regulatory regime.
Carriers who swiftly adopt AI and alternative data with appropriate bias detection, fairness optimization, and governance will gain a competitive edge in the NY market and outperform their peers.
If that aligns with your strategy, give us a call!
