Colorado Proposal Takes Aim at Discrimination in Insurance Markets

Andy Spears
3 min readMay 3, 2021

The Consumer Federation of America (CFA), Center for Economic Justice (CEJ), and Consumer Reports (CR) urge Colorado lawmakers to enact proposed legislation, SB 21–169 (Sen. Buckner), that would prevent insurance companies from using data and algorithms that result in unfair discrimination against consumers based on their race, gender, or other protected classes. The proposal addresses the impact of systemic racism on the insurance market and will expand both access to coverage and make all aspects of insurance transactions fairer.

“Colorado has an opportunity to not only stop the use of harmful factors in auto insurance pricing, but to eliminate systemic bias from the field,” said J. Robert Hunter, CFA’s Director of Insurance and a former Texas Insurance Commissioner. “This is a strong consumer protection measure that will identify and root out the systemic biases that infect the insurance market.”

SB 21–169, sponsored by Senator Janet Buckner, would require insurers to eliminate practices that treated customers differently according to their race, color, national or ethnic origin, religion, sex, sexual orientation, or transgender status. It also bans insurers from using any external consumer data and information source, predictive model, or algorithm that unfairly discriminates against consumers based on these characteristics. While the bill establishes a prohibition against unfair discrimination, it provides insurers the opportunity to demonstrate that their use of…

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Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .