Please Note: This seminar will be held online.
|
Student seminar series
Carlos
Araiza
Iturria Link to join seminar: Hosted on Microsoft Teams |
A Discrimination-free Premium Under a Causal Framework
We
examine
the
discrimination-free
premium
in
Lindholm
et
al.
(2021)
within
a
theoretical
causal
inference
framework,
and
we
consider
its
societal
context,
to
assess
when
should
the
pricing
formula be
used.
We
consider
the
insurance
pricing
problem
through
the
use
of
directed
acyclic
graphs.
This
particular
tool
allows
us
to
rigorously
define
an
insurance
risk
factor
in
a
causal
framework.
We then
use
this
definition
in
assessing
the
appropriate
application
of
the
discrimination-free
premium through
three
simplified
pricing
examples,
including
a
health
insurance
policy
and
two
personal automobile
insurance
policies
with
different
coverages.
From
our
findings,
we
suggest
criteria
for
the application
of
the
discrimination-free
premium
that
is
dependent
on
the
risk
factors
and
the
social context.