ARLINGTON, Va.–(BUSINESS WIRE)–Two new research reports designed to guide the insurance industry towards proactive and quantitative solutions to identify, measure and address potential racial bias in insurance pricing have been published by the Actuarial Health Insurance Society (CAS) today.
“These two new reports in our CAS research series on race and insurance pricing continue to provide additional insight into industry discussions on this topic,” said Victor Carter-Bey, MD, CAS Chief Executive Officer.
As the professional society of P&C insurance actuaries, CAS is committed to diversity, equity and inclusion in actuarial work.
To this end, the Society has published a series of four CAS research papers which form part of the CAS approach to race and insurance pricing, approved by the CAS Board of Directors. Each article discusses a different aspect of ride and insurance pricing, seen through the lens of property and casualty insurance.
Two of the four reports, Understanding the Potential Influences of Racial Bias on P&C Insurance: Four Pricing Factors Explored, and Defining Discrimination in Insurancecome out today.
Defining Discrimination in Insurance examines terms such as protected class, unjust discrimination, proxy discrimination, disparate impact, disparate treatment and disproportionate impact.
Understanding the Potential Influences of Racial Bias on P&C Insurance: Four Pricing Factors Explored examines how credit-based insurance score (CBIS), geographic location, home ownership, and motor vehicle records can be impacted by racist policies and practices outside of insurance. The aim is to highlight the multidimensional impacts of systemic racial biases, as they may relate to insurance pricing.
The other two reports Methods for quantifying discriminatory effects on protected classes in insurance, and Approaches to Addressing Racial Bias in Financial Services: Lessons for the Insurance Industryreleased on March 10.
These four research reports are just one of the ways the CAS supports the evolution of actuarial practice and strengthens the knowledge of its members. The documents demonstrate that the Society recognizes that actuaries, who are responsible for setting insurance rates, must be a voice in an ever-evolving dialogue. The CAS understands that this work is essential to maintaining public confidence in the Society and its members.