Price Discrimination Barred in Renewals

The topic of price-discrimination in insurance pricing has been a significant concern in the insurance industry, especially with the advent of Big Data and the increasing use of advanced algorithms. Let us delve into the details:

1. Background:

2. Regulation and Fair treatment:

3. Research and Models:

At the 2022 All-Actuaries Summit, Dr. Fei Huang and Xi Xin presented joint work on anti-discrimination insurance pricing. Their study aimed to:

      1. Moreover, review anti-discrimination laws and rules across different officials or governments, focusing on hidden unfairness in the general insurance industry.

      2. Subsequently, summarize fairness criteria applicable to insurance pricing and align them with anti-discrimination rules.

      3. Consequently, implement these criteria into existing and newly proposed anti-discrimination insurance pricing models.

      4. Additionally, compare different pricing models based on the fairness-accuracy trade-off and analyze their impact on customer behavior and cross-subsidies.

4. Indirect Discrimination:

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