New York wants to pull back the curtain on telematics pricing - and a new bill could force insurers to prove their algorithms don't discriminate.
Assembly Bill A. 10364, introduced by Assembly Member Charles Lavine on March 2, 2026 and referred to the Committee on Insurance, proposes a new set of rules governing how telematics systems - technology that monitors, stores and transmits information such as motor vehicle location, driver behavior, engine performance and vehicle activity - can be used by insurers operating in the state.
At its core, the bill is about accountability. Insurers and the third-party vendors that build these tracking systems would have to show state regulators that the factors feeding into their pricing models are genuinely tied to risk. They would also be required to publicly disclose how their scoring works - a notable ask in an industry where those methodologies have long been treated as closely guarded trade secrets.
The bill also takes a firm position on data. Any information collected through a telematics system could only be used for underwriting and rating decisions - nothing else. That means no repurposing the data for marketing or other commercial ends.
On fairness, the legislation is explicit. Insurers and vendors would be barred from discriminating on the basis of race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression - and that prohibition extends to algorithms and predictive models that draw on external consumer data sources in a way that produces the same discriminatory outcomes. Regulators have been increasingly focused on this issue as AI-driven tools become more common across the industry.
Drivers would also gain new rights under the bill. Consumers could request access to the data collected about them through a telematics system, and it would have to be provided in a readable format.
Perhaps the most significant structural change is how the bill treats third-party telematics vendors. By folding them into the definition of a "rate service organization" under New York Insurance Law, the bill brings those vendors under the direct oversight of the state's superintendent of insurance – requiring them to file their models and algorithms with regulators. Insurers, for their part, would be required to provide the superintendent with an explanation of how the factors used in their models are connected to risk.
The superintendent would also be granted broad authority to write new rules to carry out the law's purposes.
If passed and signed, the law would take effect 90 days after enactment. The bill is currently with the Assembly Committee on Insurance.
New York has long set the tone for insurance regulation in the United States, and this bill is no exception. As telematics programs continue to grow in popularity – and as scrutiny of algorithmic decision-making intensifies across financial services – the outcome of this legislation will be worth watching well beyond state lines.
