Insurers’ AI Use for Coverage Decisions Targeted by Blue States

States such as Colorado, New York, California, and others are stepping up to regulate insurance algorithms amid concerns about discriminatory practices. Insurers like State Farm, Cigna, and UnitedHealth have faced legal actions alleging unfair treatment of minorities and older customers due to their use of automated processes to deny coverage. The advance of AI in underwriting has allowed insurers to sell more policies but has also raised concerns about biases in risk and pricing models.