About This Event
The paper explores the possibility of using telematics and usage-based
insurance technologies to reduce dependence on sensitive information when
pricing insurance. Actuaries commonly rely on demographic factors such as
age and gender when deciding insurance premiums. However, some people
regard that approach as an unfair use of personal information. Moreover,
socioeconomic factors such as marital status, credit score, and geographic
location may also be used in insurance pricing, leading to higher or lower
premiums for policyholders from similar demographic groups. Furthermore,
those factors may also be correlated with other sensitive information, such
as income and race or ethnicity, creating concern of proxy discrimination
among some consumers and regulators.
