Machine learning techniques versus privacy in non-life insurance pricing
discrimination Causality and fairness
By Mathias Lindholm, Ronald Richman, Andreas Tsanakas and Mario Wüthrich
|MATHIAS LINDHOLM||RONALD RICHMAN||ANDREAS TSANAKAS||MARIO WÜTHRICH|
Over the last decade there has been a surge in applying machine learning techniques in non-life insurance pricing. This is mainly due to cheaper data collection and storage, combined with new analysis methods for unstructured data and increased computational power. In parallel there have been rising concerns about data privacy and hidden implications of using ‘black-box’ price computations.
This article represents the opinion of the authors, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 33 – March 2023