Defining Discrimination and Quantifying Disparate Impact in Insurance

Join Erich Brandt, Greg Fears and Steve Jagodzinski as they review the 2021 updates to the Risk Retention Group Benchmarking Study. They will take an in-depth look at industry-level RRG financial statement data complete with trends and comparisons to the admitted market.

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.