Last month, the California Department of Insurance sent a survey to more than 50 property & casualty insurers to gather information about the use of automated decision tools in rating, underwriting, claims handling, fraud detection, marketing loss prevention and other operative areas. Automated decision tools within the scope of the survey include big data, artificial intelligence and machine learning tools. While individual responses to the survey are confidential, the Department may later publish amalgamated information that is de-identified. And, since the survey also seeks information that may assist the Department in developing guidance or a regulatory framework, it is possible that de-identified results of the survey could eventually find their way into a Statement of Reasons for some future proposed rulemaking.
Locke Lord is monitoring developments in this quickly developing space. If you have questions, please contact your Locke Lord relationship partner or the author.