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Case study

Discrimination-free insurance pricing

Ensuring that insurance pricing is free from discrimination against protected characteristics such as ethnicity.



  • Insurance companies often use unawareness pricing to avoid direct discrimination by excluding protected characteristics from model features.

  • However, indirect discrimination arises from correlation between protected and unprotected characteristics, meaning that even unawareness pricing is not free of discrimination.


  • Creation of a causal model of the variables used in the current model for price determination.

  • Identification of protected and unprotected characteristics and cases of indirect discrimination that were not explainable by resolving factors.

  • Creation of a causal pricing model that is free of both direct and indirect discrimination with respect to the specified protected characteristics.

  • Framework to detect indirect discrimination within existing insurance pricing models.

  • New causal pricing model that is mathematically proven to be free from direct and indirect discrimination.

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