CAS Releases New Toolbox for Identifying Potential Bias in Insurance Rates
The Casualty Actuarial Society (CAS) has released a new research paper, A Scalable Toolbox for Exposing Indirect Discrimination in Insurance Rates, as part of the CAS Research Paper Series on Bias and Insurance.
This research paper provides actuaries with practical, quantitative approaches for identifying and evaluating potential bias in insurance pricing. Designed as a scalable toolbox, the paper introduces methods that can be applied across a range of use cases to support informed, data-driven decision making.
The research expands on earlier papers in the series, which established foundational knowledge and introduced statistical approaches for examining fairness in insurance pricing. Building onto these foundations, the toolbox revisits core concepts and advances methods for fairness testing and bias mitigation, with techniques that are broadly applicable across jurisdictions.
Developed in collaboration with the CAS Canada Race and Insurance Pricing Task Force, the paper incorporates a Canadian context while maintaining broad applicability across insurance operations.
Through the CAS Research Paper Series on Bias and Insurance, the CAS produces research examining potential bias in insurance pricing and related insurance practices, equipping actuaries with practical frameworks and analytical tools and encouraging discussion with regulators, insurers, and other stakeholders. The series was originally launched as the CAS Research Paper Series on Race and Insurance Pricing.
