Colorado Governor Jared Polis and state Insurance Commissioner Michael Conway have signed insurance reform legislation targeting practices that disproportionately harm communities of color, or people on the basis of their sex, sexual orientation, or gender identity. The legislation will require insurers to demonstrate that their use of external data and complicated algorithms do not discriminate on the basis of the above classes, and will help guarantee that citizens do not overpay for coverage or become unfairly targeted by insurance companies because of who they intrinsically are.

The law, SB 169, identifies the classes that "must be protected from discrimination in the "marketing, underwriting, pricing, utilization management, and reimbursement methodologies, and claims management in the transaction of insurance." The law instructs the Insurance Commissioner to take input from companies and consumers and adopt rules to ensure that insurers' use of data and models does not result in harmful discrimination. The rules must also give companies the opportunity to mitigate any biases found in their algorithms.

It is an industry practice for auto-insurers to use non-driving characteristics like credit history, gender, education, and marital status to calculate premiums. Using these characteristics has disproportionately impacted people of color and other protected classes. These practices also perpetuate systematic bias.