New York DFS Insurance Circular Letter No. 7 (2024) — AI in underwriting and pricing

Required actions

• Insurers must show that external consumer data and AI systems used in underwriting or pricing are not unfairly discriminatory, with quantitative disparate-impact testing - Board and senior management oversight, documented governance, third-party vendor controls and transparency to consumers on adverse decisions

Sources

• dfs.ny.govhttps://www.dfs.ny.gov/industry-guidance/circular-letters/cl2024-07