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Industry’s ‘pursuit of a perfect price’ penalising certain groups in society – Fairer Finance

By 2024-07-02T06:00:00

pricing model data black box

’If insurers want people to trust them, then we need to have some clarity about what’s going into their [pricing] models and how that’s being used,’ says managing director

The insurance sector’s pursuit of more data to inform ever more accurate pricing is having an unintended negative impact on some groups in society, according to Fairer Finance managing director James Daley. 

Speaking to Insurance Times, Daley explained that the use of increasing amounts of data to segment pricing without control has led to the issues for the industry, such as reputational harm from widespread reports of an ethnicity penalty. 

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