Welfare Cost of Fair Prediction and Pricing in Insurance Market
21 February 2023
16:00 PM (EST)| 22:00 PM (CET)
ABSTRACT
While the fairness and accountability in machine learning tasks have attracted attention from practitioners, regulators, and academicians for many applications, their consequence in terms of stakeholders’ welfare is under-explored, especially via empirical studies and in the context of insurance pricing.
This webinar will explore an empirical framework covering the entire pricing process to evaluate the impact of fairness and accountability regulations on both consumer welfare and firm profit, as the link between the predictive accuracy of cost modeling and its welfare consequence is theoretically undetermined for insurance pricing.
SPEAKERS
Fei Huang | Speaker Fei is a Senior Lecturer in Risk and Actuaries Studies and Deputy Director (Data and AI Tech) of the UNSW Business AI Lab. Her research focuses on applications of statistical machine learning and ethical AI in both life and general insurance. She has published papers in top-tier actuarial journals and received the inaugural Carol Dolan Actuaries Summit Prize in 2022. Fei teaches statistical machine learning and data science subjects for risk and actuarial applications. She has received multiple education awards including the UNSW John Prescott Award for Outstanding Teaching Innovation and ANU Vice Chancellor’s Award for Teaching Excellence. Fei is a Senior Fellow of Advance HE (SFHEA).
Brian Fannin | Session Moderator Brian Fannin is a research actuary at CAS. He is also the founder of PirateGrunt LLC, a boutique consulting firm based in Durham, North Carolina specializing in predictive modeling in the property casualty markets. Fannin has been an Associate of the CAS since 2002 and a Certified Specialist in Predictive Analytics (CSPA) through The CAS Institute since 2017
