Recoverability of market-wide fair insurance premiums under selection bias

Our article, Recoverability of market-wide fair insurance premiums under selection bias, with Marie-Pier Côté and Olivier Côté, was published in Insurance: Mathematics & Economics. Fairness adjustments in insurance pricing are defined relative to a reference population, i.e., to a joint distribution of (X, D, Y) where X are rating factors, D protected attributes, and Y is claim amount. Because an insurer’s portfolio is generally a selected subpopulation, portfolio and population reference distributions typically differ, so portfolio-calibrated and population-calibrated fairness …