Contents Forewords 5 Australian Human Rights Commission Actuaries Institute of Australia 1 Introduction 1.1 2 About the Guidance Resource 2.1 2.2 3 3.2 3.3 3.4 3.5 5.2 5.3 6 7 9 9 9 11 11 (a) Protected attributes (b) Direct discrimination (c) Indirect discrimination 11 11 11 When is discrimination unlawful? Exemptions and exceptions 14 15 (a) Insurance exemptions (b) Unjustifiable hardship exception 15 16 Has unlawful discrimination occurred? What about state and territory laws? 18 19 21 What is AI? How is it used? Algorithmic bias Mitigating against algorithmic bias and discrimination 21 21 22 (a) Data (b) Models 22 24 Case Studies: Challenges for insurers 5.1 7 What is discrimination? Artificial Intelligence and discrimination 4.1 4.2 4.3 5 Who is the Guidance Resource for? Why should I consider the Guidance resource? What does the law say? 3.1 4 A need for guidance 5 6 27 Case Study: Car Insurance 27 (a) Part A (b) Part B 27 30 Case Study: Travel Insurance Case Study: Life Insurance 32 35 Practical tips to avoid unlawful discrimination when using AI 39 Further Resources 41 Appendix 1: Key sections under the Discrimination Acts 43