In the News
Guidance on data use in NY and auto insurance in Florida are a focus.
- March 2019
Life Insurance: Life insurers now have specific guidance for using algorithms informed by unconventional data sources such as credit scores and even social media to underwrite policies, courtesy of the New York State insurance regulator.
The state Department of Financial Services sent a letter Jan. 18 to life insurers advising them “of their statutory obligations regarding the use of external consumer data and information sources in underwriting life insurance.”
The regulator is the first to provide specific guidelines on how to apply data and algorithms that help set premium rates, especially useful in accelerated underwriting. Insurers should not use data unless they know it is nondiscriminatory.
Auto Insurance: Florida state Sen. Jeff Brandes has renewed efforts to repeal Florida's motor vehicle no-fault law with legislation that would mandate drivers purchase bodily injury and property damage coverage. Senate Bill 896 marks the latest attempt in a series of legislative efforts to change sthe existing law that requires insurers to provide $10,000 in personal injury protection coverage for insureds, regardless of whether they are at fault in an accident. The bill would mandate Floridians buy bodily injury liability coverage at limits of $25,000 per person, $50,000 for bodily injury and death of more than one person and $10,000 for property damage. If enacted, the new system would kick in on Jan. 1, 2021.