2 About the Guidance Resource 2.1 Who is the Guidance Resource for? The Guidance Resource is intended to provide guidance to professionals and businesses who are using AI when making insurance pricing and underwriting decisions. It has been developed for actuaries, insurance companies, their staff, and others working in this area. The Guidance Resource does not constitute legal advice. It only provides general guidance and is not a definitive legal answer to all issues of discrimination that may arise. There is limited legal certainty about how a court may decide many of these issues. Given these constraints, the Guidance Resource indicates when the Commission considers that conduct ‘may’ or is ‘likely’ to constitute unlawful discrimination. Ultimately, an insurer’s board of directors and Organisations or individuals should seek their own corporate officers are responsible for ensuring the insurer’s compliance with anti-discrimination law. This Guidance Resource may help to create a common understanding between such executives and practitioners of these issues, aiding discussion of it within insurers. independent legal advice if they have concerns regarding their compliance with federal, state or territory anti-discrimination legislation. The Guidance Resource may also assist customers of insurance companies and members of the public in understanding their rights in this context. 2.2 Why should I consider the Guidance resource? The Guidance Resource provides information and practical guidance to assist decision makers to comply with their obligations under federal anti-discrimination legislation when using AI in insurance pricing and underwriting decisions. There are important reasons for following the Guidance Resource. It is against the law to discriminate against a person because of protected attributes, such as their age, sex, race, or disability, when providing insurance services unless an exemption applies. An organisation or individual will not be protected from a finding of unlawful discrimination by claiming that they complied with, or relied on, the Guidance Resource. The Commission considers however that acting in accordance with the Guidance Resource represents good practice and may be a factor considered by the courts, should a matter be considered in a judicial forum, particularly when considering if any discrimination was reasonable in the circumstances. This is an area of evolving practice, and it is recommended that insurers stay up to date with any developments to current practices and the law. Some insurance products (such as private health insurance and Compulsory Third Party (CTP) insurance) are underwritten as part of statutory schemes which may impose significant restrictions over terms, conditions, or prices of policies. This Guidance Resource is written in general terms considering typical insurance products, and does not consider the specific details that apply to such products or schemes. Institute members may find it a useful resource to assist in complying with relevant laws as required under the Institute’s Code of Conduct. Guidance Resource: Artificial intelligence and discrimination in insurance pricing and underwriting • 2022 • 9