Our latest installment of “The Insurance Interview” features Michael Consedine, Chief Executive Officer of the National Association of Insurance Commissioners (NAIC). Consedine joins FaegreBD partners Scott Kosnoff and Sara Powell to discuss what is, perhaps, the key existential question of our time: how can insurers that reap the benefits of big data and algorithms avoid the dangers of unfair discrimination and other forms of consumer harm?
Among other things, their discussion covers the following:
- The regulatory perspective. Regulators want to encourage innovation, but they have an absolute obligation to protect consumers from unfair discrimination, embedded bias and variables that serve as proxies for race or other prohibited factors.
- The role of senior management. Senior management should know exactly what goes into mathematical models, be able to explain how they work and be willing to engage in a fully transparent dialogue with regulators and consumers.
- “With great power comes great responsibility.” Insurance companies that harness the power of big data and algorithms should ensure that they are not engaging in unfair discrimination or other unfair trade practices. Independent testing and verification can help keep insurers out of hot water.
This podcast is part of our series, “The Insurance Interview,” which features insights from insurance industry thought leaders as well as updates on issues affecting the industry on the state, federal and international fronts. If there is a topic you’d like FaegreBD to consider for a future podcast, please let us know
Note: The opinions expressed in this podcast do not necessarily reflect the views of Faegre Baker Daniels or the NAIC.