1 Introduction This Guidance Resource has been developed by the Australian Human Rights Commission (the Commission), in partnership with the Actuaries Institute (Institute), to provide guidance to professionals and businesses on complying with federal anti-discrimination legislation in relation to use of artificial intelligence (AI) in insurance pricing and underwriting decisions. This Guidance Resource uses the term AI in a consistent manner to the Commission’s Human Rights and Technology Final Report (Human Rights and Technology Report) to broadly refer to a cluster of technologies and techniques, which include some forms of automation, machine learning or algorithmic decision making.1 The Guidance Resource provides: • information about the operation of the Age Discrimination Act 2004 (Cth), Disability Discrimination Act 1992 (Cth), Racial Discrimination Act 1975 (Cth), and Sex Discrimination Act 1984 (Cth) in relation to the use of the artificial intelligence in insurance pricing and underwriting decisions • information about the risks of algorithmic bias and discrimination arising from the use of artificial intelligence • practical guidance for insurers for avoiding unlawful discrimination when using artificial intelligence. 1.1 A need for guidance In 2021, the Commission published its Human Rights and Technology Report. The report was the product of a major project examining the human rights impacts of new and emerging technologies, including AI-informed decision making. In response to feedback received during the project’s extensive consultation process, the Commission recommended in its report that it be resourced to produce guidelines for government and non-government bodies on complying with federal anti-discrimination laws in the use of AIinformed decision making. The Institute, the peak professional body representing the actuarial profession in Australia, welcomed this recommendation. The Institute had made a submission to the Commission’s consultation process2 noting areas of uncertainty and the need for improved guidance. The Institute’s working party on anti-discrimination also published a conference paper3 highlighting some of these areas of uncertainty. Following an approach for collaboration from the Institute, the Commission partnered with the Institute to develop this Guidance Resource. It focuses on the use of AI in insurance pricing and underwriting decisions and was informed by a targeted consultation process of its members and industry experts. The Commission conducted a survey of Institute members in 2022 which revealed that over 70% of respondents were at least moderately concerned with the risk of breaching federal antidiscrimination laws when using AI. This Guidance Resource aims to assist in addressing those concerns. The Commission thanks the Actuaries Institute for its involvement, and those who participated in the consultations for sharing their knowledge and expertise. Guidance Resource: Artificial intelligence and discrimination in insurance pricing and underwriting • 2022 • 7