Mastering Compliance:
Colorado Regulation 10-1-1
with Lumenova AI
Lumenova AI platform helps life insurers comply with Colorado Regulation 10-1-1 by providing advanced AI governance and ethical consumer data usage tools.
- AI Governance - Simplified and Automated: Develop an AI governance and risk management strategy for your organization.
- Robust and Resilient AI Risk Management: Create AI governance policies, identify and measure risks, and ensure consistent monitoring and documentation.
- Automated Compliance Checks: Automate AI practice assessments for regulatory compliance.
- Detailed Compliance Reporting: Create compliance reports with improvement areas and recommended actions to adhere to Colorado insurance law.
What is Colorado Regulation 10-1-1
Regulations are tightening on insurers' use of data-driven tech, making compliance challenging. For instance, Colorado Regulation 10-1-1 targets life insurers. More regulations will likely emerge in the future. As AI pushes providers towards data-driven tech, compliance will become even harder. But it doesn’t have to be.
With Lumenova AI’s Responsible AI platform, insurers can address their internal governance and risk management needs both efficiently and effectively.
Defining Technologies and Key Actors in Life Insurance Regulation
CR 10-1-1 solely targets life insurers’ development and/or use of external consumer data and information sources (ECDIS) for the provision of insurance services. ECDIS is defined as: “a data or an information source that is used by a life insurer to supplement or supplant traditional underwriting factors or other insurance practices or to establish lifestyle indicators that are used in insurance practices.”
Outlining the Scope of ECDIS Governance and Risk Management
The CR 10-1-1 requires life insurers to establish governance and risk management protocols regarding the use or potential use of ECDIS, either as a standalone data source, or as a component of an algorithm or predictive model. Crucially, life insurers must establish measures and mechanisms by which to ensure that ECDIS use does not result in undue discrimination. These factors, taken together, constitute the overall scope of this regulation enforced by the Colorado Insurance Commissioner.
Setting the Bar for Governance and Risk Management in Life Insurance
According to CR 10-1-1, life insurers’ governance and risk management programs should:
- Document values and objectives for ECDIS use
- Ensure oversight by a board or committee
- Establish monitoring roles for senior management
- Document governance functions
- Establish complaint mechanisms
- Create risk assessment rubrics
- Maintain an inventory of ECDIS use
- Describe testing mechanisms to minimize discrimination.
Comprehensive Reporting
Requirements for Life Insurance Providers
- Life insurance companies operating in Colorado are required to submit a compliance report to the Colorado Division of Insurance by June 1st, 2024, in accordance with regulation CR 10-1-1.
- Additionally, they must submit their first annual compliance progress report by December 1st, 2024, even if they plan to switch to ECDIS.
- For those without ECDIS, an officer’s attestation certifying their lack of ECDIS use is required after the regulation comes into effect and on an annual basis thereafter.
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