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Connecticut Insurance Department (CID) Commissioner Andrew N. Mais issued a formal notice to insurers licensed by the Department that their use of technology and Big Data must be in full compliance with Federal and State anti-discrimination laws. In addition, insurers are now required to submit an annual data certification.

“The insurance landscape is rapidly changing in many ways,” said Insurance Commissioner Andrew N. Mais. “Insurers have the responsibility over the data they collect and control and the data their third-party vendors are using. Regulators need to know how the data is being used, legally and ethically, and how to better protect consumer information.”

The notice issued to all entities and persons licensed by the Department concerning their usage of big data and avoidance of discriminatory practices on April 20, can be accessed here.

“The certification is a reminder to insurers of their continuing obligation to use technology and Big Data responsibly and transparently, in full compliance with Federal and State anti-discrimination laws to protect consumers,” said Commissioner Mais. “The Department continues to closely collaborate with all stakeholders to both support their growth of innovation and use of Big Data and Artificial Intelligence.”

Big Data refers to a complex volume of data and the set of technologies that analyze and manage it. Big Data is aiding insurers’ underwriting, rating, marketing, claim settlement practices, fraud and every other facet of the insurance process life cycle.

In fulfilling the role of protecting consumers and regulating the Connecticut insurance industry, the Department has exercised its authority to require that insurance carriers and third-party data vendors, model developers, and bureaus provide the Department with access to the data used to build models or algorithms included in all rate, form, and underwriting filings since 2021. The new notice now requires them to certify their compliance with applicable anti-discrimination laws.

The April 20, 2022 Department Notice amends a prior notice to industry issued on April 8, 2021. The data certification alleviates the potential for regulatory concerns with regards to insurers data governance oversight, internal data deployment, and risk management and compliance. The data certification is due annually by September 1^st.