Life Insurers Sinking in Quicksand as Regulators Scrutinize Non-Traditional Consumer Data Sources
April 9, 2019 by Ann Young Black, Jamie Bigayer
As previously reported in our October 9, 2018, client alert, the sands began shifting in late 2018 when the NAIC Big Data Working Group (Big Data WG) began questioning life insurer’s use of big data after a LIMRA survey found that 50 percent of responding life insurers were already using some form of automated underwriting. At the Big Data WG’s February 25 meeting, Chair Doug Ommen confirmed the group will continue to focus on the use of big data by life insurers, since “it has become commonplace to use models in life underwriting.” Consumer representative Birny Birnbaum suggested that the Big Data WG investigate the potential for unfair discrimination in life underwriting and the use of big data for claims settlement and fraud detection. While the Big Data WG will finalize its 2019 priorities at the NAIC Spring National Meeting, it is clear life insurers will be unable to escape the regulatory sandpit.
Click HERE to read the full story via Carlton Fields.