Defining Discrimination and Quantifying Disparate Impact in Insurance

The title insurance market, a large component of the property and casualty market, grew at unprecedented levels in 2020 and 2021. Although homeowners are required to secure title insurance as a requisite to home purchase, few understand title insurance or its policy provisions. This session explores the historical financial results of the industry and investigate correlations between title underwriting experience and broad economic metrics. 

Territorial ratemaking is a tricky process. It doesn’t work well in traditional regression approaches, but is made easier and more transparent through clustering. In this APEX, Consulting Actuaries Kunshan Yin and Joey Sveda will introduce two common clustering methods – K-means clustering and hierarchical clustering – and discuss how these algorithms can be incorporated into regression-based pricing models for better results. They will also discuss territorial ratemaking in the context of the evolving conversation on disparate impact in insurance pricing.

The world changed dramatically over the past two and a half years, and the insurance industry was no different. Insurers raced to respond to the impact of COVID-19 by designing new business strategies, working to meet changing customer needs and leveraging digital and technological solutions. Pinnacle Consulting Actuary Kendra Letang and Associate Actuary Nicole McArdle will be joined by GuideOne’s Dalesa Bady to discuss what COVID-related insurance trends might be here to stay in a post-pandemic world.