This research introduces a multi-objective optimization framework to balance predictive accuracy with fairness in insurance pricing, using Pareto optimization and domain-specific fairness metrics.
Key findings
Proposes a framework that models the tradeoff between utility and fairness in insurance premium calculations.
Combines Pareto optimization with actuarial fairness metrics for insurance contexts.
Includes a decision support system for regulatory compliance and stakeholder communication.
Addresses the gap between theoretical fairness concepts and practical actuarial requirements.
Limitations & open questions
The framework's real-world applicability and regulatory acceptance are yet to be fully validated.
The integration of fairness metrics with actuarial standards may require further refinement.