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In this white paper, Pinnacle's Senior Consulting Actuaries Gary Wang and Michael Chen investigate "the balance between maintaining accurate risk  differentiation and ensuring equitable treatment among various classes of interest when the use of certain rating variables is restricted or banned by insurance regulatory law."

This is the sixth research paper in the Series on Race and Insurance Pricing published by the Casualty Actuarial Society (CAS), and it explores the issue of potential racial bias in insurance.

Background from the CAS about the series on risk and insurance pricing:

The CAS Research Paper Series on Race & Insurance Pricing was created to guide the insurance industry toward proactive, quantitative solutions that address potential racial bias in insurance pricing. These reports explore different aspects of unintentional potential bias in insurance pricing, address historical foundations and offer forward-looking solutions to quantify and handle possible bias. Through these reports, the CAS aims to encourage actuaries to discuss this topic with their stakeholders across all areas of insurance pricing and operations. For more information on the series, visit casact.org/raceandinsuranceresearch.