Like in many other sectors, personal data and algorithms are increasingly being used by insurers in their underwriting, claims, and rating practices. Whilst these advances can bring benefits, concerns have been raised about the quality of information sources and the rationale for using algorithms, particularly because insurance practices are high-risk and minority groups could be especially vulnerable to discrimination.

In response to these concerns, Colorado’s General Assembly enacted legislation last year that restricts insurers’ use of ‘external consumer data’, prohibits data, algorithms, or predictive models from unfairly discriminating, and requires insurers to test their systems and demonstrate that they are not biased. Here are 10 things you need to know about SB21-169.