The Connecticut Insurance Department issued a revised Notice to All Entities and Persons Licensed by the Connecticut Insurance Department concerning the Usage of Big Data and Avoidance of Discriminatory Practices (available here). The Notice, issued April 20, 2022, reminds “all entities and persons licensed by the Department that the Department continues to expect such entities and persons to use technology and Big Data in full compliance with anti-discrimination laws and have completed the [annual] data certification….”
Since the Notice was issued, many Department licensees have questioned the applicability of the annual certification requirement under the Notice, given its title and text emphasizing that it applies to “all entities and persons licensed by the Department.” The Department has confirmed, however, that the Notice applies to all Connecticut licensed persons and entities, but the annual certification requirement applies only to Connecticut domestic insurance companies. Therefore, while all Connecticut insurance licensees are required to comply with the Notice, only insurance companies domiciled in Connecticut must file the certification.
In reminding insurers of their “obligation to use technology and Big Data responsibly and transparently in full compliance with Federal and State anti-discrimination laws, the Notice includes the Department’s recognition of “the transitory nature of three aspects of the usage of Big Data:”
In view of these three aspects of Big Data usage, the Notice reiterates the following general topics for regulatory concerns: (i) use of Big Data in connection with algorithms, predictive models and analytic processes; (ii) internal governance of Big Data; and (iii) risk management and compliance throughout the life cycle.
All Connecticut insurance licensees must attend to their collection and use of Big Data in the context of regulatory compliance requirements, and Connecticut domestic insurers will need to certify annually as to the insurer’s
* With appreciation for the contributions of our summer associate Brianna L. McKenzie of The University of Connecticut School of Law Class of 2023.
The post Big Data for Insurers: Clarity about the New Connecticut Requirements appeared first on Insurance & Reinsurance.
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