Actuaries have a responsibility to scrutinize the processes, systems and models we build to understand if the inputs and outcomes truly reflect fair and equitable practices. Building on the foundation of the CAS’s 2022 Research Paper Series on Race and Insurance Pricing, the CAS has launched five new research projects in 2024. This session will preview two of these papers that aim to understand current and future regulations related to algorithmic bias and help actuaries to prepare and respond in this new regulatory landscape. We will begin by sharing highlights of a survey of state insurance regulators aiming to understand activity related to algorithmic bias and what issues are most likely to be addressed in the coming years. Then we will share governance and testing approaches that insurers and actuaries can utilize during model-building, implementation, and maintenance, that can support compliance with bias-related regulatory reporting and testing requirements.
Learning Objectives:
Understand the current regulatory environment with regards to potential algorithmic bias in insurance.
Explore the potential for future regulatory actions impacting the insurance industry and actuarial models along with considerations for actuaries.
Develop a set of robust processes and tools to support compliance with bias-related regulatory reporting and testing requirements.
