FairPlay, which describes itself as the world’s first ‘fairness-as-a-service’ solution for algorithmic decision-making, has launched a new bias detection solution for insurance carriers.
The solution, Input Intelligence, is an expansion of FairPlay’s financial services solutions. This tool will help insurance companies review their data for bias detection, ensuring they are not proxies for protected characteristics such as race or gender.
Companies will benefit from reaching more customers, especially from historically disadvantaged groups and meeting growing consumer and regulatory demands for greater fairness in insurance.
The platform will use redlining technology for bias detection, which is able to identify unfair practices based on where people live so that insurance carriers can ensure their marketing and products are not excluding low- and moderate-income neighbourhoods.
FairPlay’s insurance division will be led by Josh Hershman, former Deputy Commissioner of the State of Connecticut Insurance Department. In this previous role, Hershman worked with stakeholders to establish guidelines around the use of big data, AI/ML models for insurance providers in the state of Connecticut.
Hershman said, “Consumers are demanding a better experience from insurance carriers, and the industry is meeting those demands using AI/ML at every stage of the consumer journey.
“Data variables used correlate to risk but may cause disparities for historically disadvantaged groups. AI/ML in insurance must be executed fairly and ethically, not only to meet consumer demand but also to give insurers better reach into underserved communities. I am thrilled to team up with FairPlay and work with carriers and regulators to alleviate this problem.”
FairPlay recently raised $10m in a Series A round, which was led by Nyca Partners.
Decision intelligence platform Quantexa recently released a report highlighting the need for bias detection. It stated that by removing bias and discrimination within technology, firms would be better placed to reduce fraud in insurance.
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