b'INSURANCE REGULATORY|US/NAICnegative outcome for such protected status; andmodels using data sources that have been (3)the negative outcome exceeds the reasonablepreviously assessed and found not to be unfairly correlation to the underlying insurance practice,discriminatory. The Colorado DOI must also including losses and costs for underwriting. consider the impact of any proposed rules on the SB21-169 specifically applies to the followingsolvency of insurers when drafting such rules.insurance practices: (1) marketing; (2)A stakeholder process will be used to help underwriting; (3)pricing; (4) utilizationdetermine appropriate rules for the Colorado management; (5) reimbursement methodologies;Insurance Commissioner to promulgate and such and (6) claims management. Further, the lawrules will ultimately describe the balancing test applies broadly to life, health and P&C insurerswhich insurers doing business in Colorado will have who utilize external consumer data andto perform when testing big data practices. The information sources, algorithms and predictiveColorado DOI reported that it anticipated that models. However, the law specifically excludesstakeholder meetings by line of insurance and title insurance, bonds executed by qualifiedinsurance practice would begin in mid-January surety companies and commercial insurance2022, with any rules developed through this process policies (other than business owners orto be effective no earlier than January 1, 2023.commercial general liability policies with annual premiums of $10,000 or less). Center for Economic Justice LetterSB21-169 requires regulations adopted by theCirculated with the Fall National Meeting Colorado DOI to require insurers to: (1) providematerials for the R&I Committee was a letter from information on the external consumer data andthe Center for Economic Justice (the CEJ). In its information source used in developing andletter, the CEJ endorsed the role of the R&I implementing their algorithms and models; (2)Committee as a coordinating body for the NAICs explain how the insurer uses external consumerefforts to address systemic racism in insurance, data and information; (3)establish and maintain abut expressed the view that by centralizing these risk management framework or similar process toefforts solely on the R&I Committee, the determine whether their big data systems result incommittee was taking on an issue whose scale is unfair discrimination and attest to itsbeyond its capacity and, further, that such implementation; and (4) provide an assessment ofcentralization was precluding other groups within the results of the risk management framework orthe NAIC from examining issues of race and similar process. Further, any regulations adoptedinsurance in their subject matter areas. by the Colorado DOI must establish a reasonableConsequently, the CEJ urged the R&I Committee timeframe for insurers to remedy any unfairlyto distribute work to relevant NAIC subject matter discriminatory impact and allow insurers to utilizecommittees, task forces and working groups, external data sources and algorithms or predictivewhile continuing the coordination of work on race 92|Global Insurance Industry Year in Review 2021'