Press Release

*DIFS Issues Bulletin to Address Use of AI in the Insurance Industry*

*Media Contact:* [email protected]?
*Consumer Hotline:* 877-999-6442, Michigan.gov/HealthInsurance [ [link removed] ]

*FOR IMMEDIATE RELEASE:*?August 7, 2024

(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS) has issued a new bulletin [ [link removed] ] that will help ensure consumers are protected when insurance companies use Artificial Intelligence (AI) technologies when they underwrite new policies, make coverage determinations, or decide how much their products will cost.

?The use of AI is transforming the way work is done in many industries, including insurance, but it is important that every 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 the responsibilities that insurers have when they adopt these new technologies to ensure that Michiganders have equitable access to insurance.?

The use of AI technology has led to the development of innovative new products and has led to the automation and simplification of many processes in the insurance industry. However, these technologies can also present unique risks to consumers, such as inaccuracies, unfair discrimination, a lack of transparency in internal decision making, and the increased potential for data vulnerability. The new DIFS bulletin [ [link removed] ] details how existing state laws apply to these technologies and outlines the Department?s expectations for how insurers will develop and use these technologies in their internal and consumer-facing processes.

For more information about insurance in Michigan, visit?Michigan.gov/DIFS [ [link removed] ]. Consumers with questions or concerns may call DIFS at 877-999-6442 Monday through Friday from 8 a.m. to 5 pm., or file a complaint online at?Michigan.gov/DIFSComplaints [ [link removed] ].

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering 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 [ [link removed] ]?or follow the Department on Facebook [ [link removed] ], X [ [link removed] ], or LinkedIn [ [link removed] ].

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