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.
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.
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.
Related Terms
External Consumer Data and Information Sources (ECDIS)
Data and information sources used by insurers to supplement or replace traditional underwriting factors....
Algorithms and Predictive Models
Systems that utilize external consumer data and information sources to inform various insurance practices....
Predictive model
A model that predicts outcomes for insurance decisions....
Insurance practice
Insurance activities covered by the statute....
Consumer Report
Information used for credit, employment, or insurance eligibility....