Requires certain disclosures by automobile insurers relating to the use of telematics systems in determining insurance rates and/or discounts.
Summary
This bill would regulate the use of telematics systems by automobile insurers and their third-party telematics vendors. It defines telematics systems as technology that monitors, stores, and transmits information such as vehicle location, driver behavior, engine performance, and vehicle activity, and it expands the definition of “rate service organization” to include third-party telematics developers and vendors. The bill requires those entities to file their models or algorithms with the Superintendent of Financial Services and to explain how the factors used in those models are connected to risk.
The bill also requires public disclosure of scoring methodologies, reporting on testing for discrimination or disparate impact against protected classes, and consumer access to telematics data in a readable format. It limits the use of telematics-collected data to underwriting and rating decisions only, and prohibits unfair discrimination based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression, including through external consumer data sources and predictive models. The bill would take effect 90 days after becoming law.
Impact
The bill would amend the New York Insurance Law by modifying section 2313 and adding a new section 2304-a to create a regulatory framework for telematics-based auto insurance pricing. It would give the Superintendent of Financial Services explicit authority to oversee telematics models, require filings and disclosures from insurers and vendors, and adopt implementing regulations. Affected parties would include auto insurers, telematics technology vendors, data analytics providers, and consumers whose driving data is collected and used in rating or discount decisions.
Sentiment
The available record shows the bill as introduced and referred to the Senate Committee on Insurance, with no recorded committee debate or vote history in the provided materials. Based on the bill’s text and caption, the measure appears to be framed as a consumer-protection and anti-discrimination bill aimed at increasing transparency in insurance pricing. There is no direct evidence of support or opposition in the supplied transcripts or votes, but the structure of the bill suggests an intent to balance insurer use of telematics with oversight and consumer rights.
Contention
The main points of potential contention are likely to be the disclosure and filing requirements for proprietary algorithms, the restriction on using telematics data only for underwriting and rating, and the prohibition on unfair discrimination tied to both protected-class status and external consumer data. Insurers and telematics vendors may view the bill as burdensome or as exposing trade secrets, while consumer advocates may support the transparency, access, and anti-bias provisions. Another likely issue is the scope of the superintendent’s authority to define compliance standards and data-access formats through regulation.