California drivers need defenses against the misuse of technology by insurers

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  • Consumer Watchdog, a group that works to safeguard consumers, is pleading with California’s insurance commissioner to shield citizens from insurers who abuse computer algorithms and artificial intelligence (AI).

Consumer Watchdog asserted that the use of technology to determine insurance coverage eligibility and set premiums “is a serious threat to Californians and a violation of California law” at a public meeting held by the California Department of Insurance (CDI) on Wednesday to examine bias and discrimination by insurance companies.

The proponents of AI, algorithms, and machine learning assert that every development in technology enhances our quality of life. That has been disproven to be a fiction, the group claimed in a letter to Insurance Commissioner Ricardo Lara. These technologies were created by human engineers who mainly worked for big businesses. Insurance companies would be able to pass off their covert decisions regarding the selection of data to input and the algorithms and models that modify the data as technical infallibility, masking old-school prejudice.

Harvey Rosenfield, the founder of Consumer Watchdog, responded to Repairer Driven News’ inquiry about the potential impact of the group’s statement, saying, “We have a 35-year track record of working for consumers in the insurance sector… In my opinion, the commissioner not only needs to pay attention to us, but it would also be a grave error for him to ignore us given our position.

Rates under the Rate Reduction and Reform Act, also known as Proposition 103, must be determined by “objectively verifiable elements within the driver’s control.” “Insurers now prefer to base car insurance rates on computer forecasts of the likelihood that a driver will be involved in an accident based on the ‘geographical location’ of where and when the driver is traveling.

The organization identified the use of car telematics as a key issue of concern in its statement. “tremendous volumes of data” are being exploited in ways that go beyond what California insurance law allows.

It is my wish. Based on the large amount of personal information that has not been verified but has been gathered as people shop, research, and engage online, there may be a variety of different factors that determine how and when people apply the brakes.

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