Technical

External consumer data and information source (ECDIS)

Third-party consumer data sources used in insurance models.

How the laws define this

Both provisions agree that an external consumer data and information source (ECDIS) encompasses third-party consumer data, including credit scores, social media activity, purchasing habits, and educational attainment, used by insurers to complement traditional underwriting or insurance practices. Where the instruments diverge is in their specific scope and regulatory application. Colorado Senate Bill 21-169 (Colo. Rev. Stat. § 10-3-1104.9) explicitly connects ECDIS to inputs used with algorithms or predictive models that insurers must identify, explain, and manage, while listing additional examples like geolocation, home ownership, occupation, licensures, and court records. Conversely, the text titled CONCERNING PROTECTING CONSUMERS FROM UNFAIR DISCRIMINATION IN INSURANCE PRACTICES defines ECDIS as any data source used to establish lifestyle indicators or complement traditional practices, without restricting the definition to algorithmic inputs or specifying statutory management requirements.

Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.

What it triggers

In Colorado, under Colorado SB 21-169, insurers must identify, explain, and manage ECDIS used with algorithms or predictive models.source
In Colorado, under Colorado SB 21-169, ECDIS may be used with algorithms or predictive models only if they do not cause unfair discrimination.source

Definitions (2)

A broad, illustrative category of data sources outside traditional insurer-held data that may be used with algorithms or predictive models, including credit scores, social media activity, geolocation, purchasing habits, home ownership, education, occupation, licensures, court records, and similar third-party data. ECDIS is the statutory term for such external inputs that insurers must identify, explain, and manage under the law.

Restrict Insurers' Use of External Consumer Data (Protecting Consumers from Unfair Discrimination in Insurance Practices) — Colorado Senate Bill 21-169 (Colo. Rev. Stat. § 10-3-1104.9). ([leg.colorado.gov](https://leg.colorado.gov/bills/sb21-169?utm_source=openai))Definition 1 of 2

ECDIS includes any data or information source used by an insurer to complement traditional underwriting or other insurance practices, or to establish lifestyle indicators. Examples include credit scores, social media habits, purchasing habits, and educational attainment.

CONCERNING PROTECTING CONSUMERS FROM UNFAIR DISCRIMINATION IN INSURANCE PRACTICES.Definition 2 of 2

Not to be confused with

External Consumer Data and Information Sources (ECDIS)

The related term provides a general short description of ECDIS as data supplementing or replacing traditional underwriting, while the definitions here detail specific examples and statutory duties.

Consumer Report

A consumer report is information specifically used for credit, employment, or insurance eligibility, whereas ECDIS encompasses a broader range of third-party data sources like social media and purchasing habits.

Questions and answers

What duties apply to ECDIS in Colorado insurance?

Under Colorado SB 21-169, insurers must identify, explain, and manage ECDIS when used with algorithms or predictive models to avoid unfair discrimination.

What are examples of ECDIS?

ECDIS includes credit scores, social media activity, geolocation, purchasing habits, home ownership, education, occupation, licensures, court records, and similar third-party data.

Does ECDIS apply only to algorithms in insurance?

ECDIS refers to external data sources used with algorithms or predictive models in underwriting, or to complement traditional underwriting or establish lifestyle indicators.