CAS Race and Insurance Pricing Research - Defining Discrimination and Quantifying Disparate Impact in Insurance

As the insurance industry focuses attention on potential racial bias across all practice areas, CAS actuaries are being called to understand, and asses the issues and develop solutions. This session will provide an overview of two new research briefs commissioned as part of the Casualty Actuarial Society's Approach to Race and Insurance Pricing - Defining Discrimination in Insurance and Methods for Quantifying Disparate Impact in Insurance. Kuda Chibanda will present key terminology being used in the industry debate on race and insurance, such as protected class, fair and unfair discrimination, proxy discrimination and disparate impact, and explain the implications of conflicting definitions of these terms. Next, Roosevelt Mosely will dive into the issue of disparate impact and compare several potential statistical methods that actuaries can apply to measure fairness in the context of insurance rating.

  • Date:Monday, November 8
  • Time:2:30 PM - 3:45 PM Pacific Standard Time
  • Room:Pacific Ballroom 18-22
  • Location:Pacific Ballroom 18-22
  • Session Type:Concurrent Session
  • Session Code:CS-6
  • Livestreamed Sessions:Livestream Session
  • Content Focus Area:CAS
  • Learning Objective 1:Understand the historical context for current insurance industry focus on racial bias.
  • Learning Objective 2:Contrast definitions of key terminology, including discrimination and disparate impact, as they relate to insurance practices.
  • Learning Objective 3:Apply several statistical methods to measure fairness in insurance rating.
  • Level of Knowledge:Level 1: No prior knowledge of the subject (0-3 years)
  • Moderator:Mallika Bender, FCAS
  • Survey Text:Survey
Speakers
Kudakwashe Chibanda, FCAS
CAS
Roosevelt Mosley, FCAS, CSPA
Pinnacle Actuarial Resources, Inc.
Mallika Bender, FCAS
Casualty Actuarial Society
Back