Predictive model
A model that predicts outcomes for insurance decisions.
Definitions (2)
A model that uses data to generate predictions, scores, or risk assessments intended to inform insurance-related decisions and actions. The statute treats predictive models as distinct from general algorithms for purposes of governance, testing, and oversight of insurer use.
A predictive model is a statistical or machine learning tool that uses external consumer data and information sources to forecast future events or outcomes relevant to insurance practices, such as risk assessment or claims likelihood. These models are subject to scrutiny under the Act for potential discriminatory impacts.
Related Terms
Algorithms and Predictive Models
Systems that utilize external consumer data and information sources to inform various insurance practices....
Insurance practice
Insurance activities covered by the statute....
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A trained algorithmic artifact that performs tasks using learned parameters....
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Trained algorithms used to generate inferences or predictions....
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The mathematical engine within an AI system....