Artificial Intelligence: Insurance

(asked on 28th March 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that algorithms used in the insurance markets do not lead to racial discrimination in pricing.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 4th April 2022

Insurers are required to abide by the Equality Act (2010) and are not allowed to use ethnicity as a risk factor when determining the price of insurance.

The recent Citizens Advice report highlights an important point that there is the risk of discrimination in pricing in the insurance market and this matter should be looked into further.

Insurers must treat customers fairly and firms are required to do so under the Financial Conduct Authority’s (FCA) rules. The FCA is an independent non-governmental body responsible for regulating and supervising the financial services industry, including insurers.

The Government is keen to ensure that all consumers have access to a range of financial products that suits their needs and is keeping this situation under review.

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