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Open in new tab This paper from Dr. Robert Hartwig examines the origins and evolution of policymaker and insurer commitments to ensuring fairness in insurance pricing and surveys the research (historical and current) measuring the success of those commitments. According to Casualty Actuarial Society, Statement of Principles Regarding Property and Casualty Insurance Ratemaking, “actuarially sound rates must be ‘reasonable and not excessive, inadequate, or unfairly discriminatory.’” New research conducted in response to regulatory concerns about the possibility of unintended bias influencing auto insurance rates and resulting in unfair discrimination offers substantial evidence— consistent with past research—that insurance rating practices do in fact result in fair pricing for consumers, with premiums tracking losses. The paper dives into past and current research on unfair discrimination with insurance pricing and draws a clear distinction between “disparate impact” and “unfair discrimination”.
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