PRESS RELEASE
MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
*************************
LANSING – The Michigan Department of Insurance and Financial Services (DIFS) has issued a new bulletin to help ensure consumer protection when insurance companies use artificial intelligence (AI) technologies in underwriting new policies, determining coverage or setting the cost of their products.
“The use of AI is changing the way many industries work, including insurance. However, it is important that any decision made by insurers using these systems complies with all applicable federal and state laws and regulations,” said DIFS Director Anita Fox. “This new bulletin clarifies DIFS’ expectations and outlines insurers’ responsibilities as they adopt these new technologies to ensure Michiganders have equitable access to insurance.”
The use of AI technology has led to the development of innovative new products and has resulted in the automation and simplification of many processes in the insurance industry.
However, these technologies also pose particular risks for consumers, such as inaccuracies, unfair discrimination, lack of transparency in internal decisions and an increased risk of their data being compromised.
The new DIFS bulletin explains in detail how existing state laws apply to these technologies and outlines the Department’s expectations regarding how insurers will develop and use these technologies in their internal and customer-facing processes.
For more information about insurance in Michigan, visit Michigan.gov/DIFS. Consumers with questions or concerns can call DIFS at 877-999-6442 Monday through Friday from 8 a.m. to 5 p.m. or file a complaint online at Michigan.gov/DIFSComplaints.
The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services that are fundamental to the opportunity, security and success of Michigan residents, while promoting economic growth and sustainability in both industries. In addition, the department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the department on Facebook, X or LinkedIn.
*************************
