Menu

Expect Focus Life, Annuity, and Retirement Solutions, April 2022

Action-Packed Spring for NAIC Special Committee on Race and Insurance

Government Law & Consulting   |   Life, Annuity, and Retirement Solutions   |   Life, Annuity, and Retirement Solutions   |   Financial Services Regulatory   |   Cybersecurity and Privacy   |   May 11, 2022
Download Download   
Share Share Page

The NAIC Special Committee on Race and Insurance is moving full steam ahead in 2022, with a packed agenda during the April NAIC Spring 2022 National Meeting in Kansas City.

At the federal level, Chlora Lindley-Myers, co-chair of the special committee and director of the Missouri Department of Commerce and Insurance, indicated that the NAIC is working with the U.S. House Committee on Financial Services Subcommittee on Diversity and Inclusion, which will host a hearing and produce a report on DEI efforts within the insurance industry. The NAIC has met with Rep. Maxine Waters, chair of the U.S. House Committee on Financial Services, and some industry stakeholders have received letters and surveys regarding the subcommittee’s efforts.

Workstreams One and Two of the Special Committee on Race and Insurance will continue to research and develop ideas to enhance diversity and inclusion efforts across the insurance industry and within state insurance departments. Workstream Three will continue to focus on legal and regulatory approaches to addressing unfair discrimination in the business of insurance to make recommendations for statutory or regulatory changes. Further, this workstream will develop analytical and regulatory tools to assist state insurance regulators in defining, identifying, and addressing possible unfair discrimination.

Leadership from Workstream Three met with the newly formed Innovation, Cybersecurity, and Technology (H) Committee, the Accelerated Underwriting (A) Working Group, and mathematician Cathy O’Neil regarding unintended algorithmic biases and the development of resources for regulators to address the issue. They agreed on a collaborative approach to harness the knowledge of academics, consultants, and others with expertise in artificial intelligence, machine learning, and algorithms. Moving forward, the Innovation, Cybersecurity, and Technology (H) Committee will house a collaboration forum to hear from subject matter experts, which will then allow individual workstreams to apply their knowledge toward specific charges.

The Special Committee’s Workstream Four will focus on the marketing and distribution of life insurance products in underserved communities to address issues such as disparate treatment, proxy discrimination, access to products, and claims handling. As a part of this effort, Workstream Four has met with insurance industry stakeholders and the Financial Alliance for Racial Equity (FARE), which aims to increase racial diversity, create greater equity, and foster inclusion within the financial services industry and the communities it serves.

Insurance industry stakeholders should anticipate significant developments from the Special Committee on Race and Insurance and all associated workstreams throughout the remainder of the year, with some reports issued as early as the NAIC Summer 2022 National Meeting in Portland, Oregon.

 


©2022 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Subscribe to Publications

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.