NEW published reports on careers and insurance prices

ARLINGTON, Va.–(COMMERCIAL WIRE)–research reports designed to guide the insurance industry toward proactive and quantitative solutions to identify, measure, and address potential racial bias in insurance pricing were published by the Accident Actuarial Society (CAS) today.

“The CAS is proud to move forward not only with a commitment to diversity, equity and inclusion in all aspects of actuarial work, but with research that addresses the issue on a quantitative level,” said Victor Carter-Bey, DM, executive director of the CAS. official. “These documents are an important contribution to ongoing conversations in the insurance industry to address the potential implications of racial bias in insurance pricing. We want our unique and valuable actuarial perspective to help promote and enhance those conversations.”

“This research helps lay the groundwork for CAS members and other stakeholders to become aware of the discussions taking place around this topic and the potential impact on the work actuaries do,” said Roosevelt Mosley, FCAS, CSPA, president-elect of CAS, co-author of one of the articles, and senior actuary and consultant for Pinnacle Actuarial Resources. “The actuaries’ experience in insurance pricing and our extensive training, from analytical skills to deep industry knowledge, allow us to help quantify and explain the problems ahead.”

To this end, the Society is publishing a series of four CAS research papers that form part of the CAS Focus on Racing and Insurance Pricing. approved by the CAS board of directors. Each document addresses a different aspect of race and insurance prices seen through the lens of property and casualty insurance. The first two articles are available today. on the CAS website:

  • Approaches to Address Racial Bias in Financial Services: Lessons for the Insurance Industry. This paper examines the issues of racial bias in lending practice for mortgages, personal and business loans, as well as in credit scoring. It discusses these four areas and outlines solutions to address any potential bias, which may include government intervention, internal bias testing and monitoring measures, and the development of new products to mitigate bias.

The other two articles will be published on Thursday, March 31:

  • Definition of Discrimination in Insurance. This paper includes a glossary of terms and how they are used historically and in practical contexts.
  • Understanding the Potential Influences of Racial Bias in Property and Casualty Insurance: Four Rating Factors Explored. This paper examines insurance scoring based on credit, geographic location, home ownership, and motor vehicle records to understand how the data underlying insurance pricing models can be affected by racially biased policies and practices outside of insurance.

The CAS keeps its members informed of emerging industry developments, such as insurance careers and prices, that may significantly affect how actuaries practice. These four new CAS research papers reflect the CAS approach to racing and insurance pricing, which outlines four focus areas: education, research, leadership and collaboration.

These four research reports are just one of the ways that CAS supports evolving actuarial practices and strengthens the knowledge of its members. The documents demonstrate the Society’s recognition that actuaries, who are responsible for setting insurance rates, must recognize social issues and be part of an ever-evolving dialogue. The CAS understands that this work is critical to maintaining the Society and the public trust of its members.

Documents can be accessed on the CAS website.

About the Accident Actuarial Society (CAS)

The Casualty Actuarial Society (CAS) is a leading international professional education and accreditation organization. Founded in 1914, the CAS is the world’s only actuarial organization focused exclusively on property and casualty risks, serving more than 9,500 members worldwide. CAS-educated professionals empower businesses and government to make well-informed strategic, financial, and operational decisions. Learn more at casact.org.

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