The Colorado Division of Insurance’s recent adoption of regulations to govern life insurers’ use of any external consumer data and information sources is the first step in implementing legislation approved in 2021 aimed at protecting consumers in the state from insurance practices that might result in unfair discrimination.
Property/casualty insurers doing business in Colorado should be keeping an eye on how the legislation is implemented, as rules governing their use of third-party data will certainly follow.
The implementation regulations, which have been characterized as a “scaling back” of a prior draft release in February, require life insurers using external data to establish a risk-based governance and risk-management framewor