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Verisk launches FairCheck to address regulatory scrutiny and ensure fair insurance pricing

20th November 2023 - Author: Akankshita Mukhopadhyay

Global data analytics and technology provider, Verisk, has introduced FairCheck, a comprehensive solution aimed at helping insurers assess their personal lines models and variables to address regulatory changes.

FairCheck offers a customisable and scalable methodology along with consultative services to evaluate and mitigate the potential for unfairly discriminatory outcomes, especially in anticipation of regulatory filings, Verisk said.

Adrian Cuc, Senior Vice President of Analytics at Verisk, highlighted the proactive nature of the initiative, citing Verisk’s own assessment of its personal auto rating model to determine fairness in pricing differentials related to race.

The analysis formed the basis for FairCheck, allowing insurers to assess their models, variables, and geographical regions for potential unintended bias.

Verisk, equipped with one of the largest insurance databases, developed a robust methodology to investigate the role of race in personal lines pricing models.

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The results, detailed in the white paper “Assessing for Unfair Discrimination with Respect to Race in a Personal Rating Model,” underwent review by the Maguire Academy of Insurance and Risk Management at Saint Joseph’s University, providing credibility to Verisk’s approach.

Michael Angelina, Executive in Residence of the Maguire Academy of Insurance and Risk Management, acknowledged Verisk’s thoughtful process and leading role in the equity in insurance initiative, emphasising the importance of a correct and robust approach.

With a team of experts in government relations, actuarial science, data science, and analytics, Verisk is poised to support impartial underwriting and rating outcomes, benefiting insurers, regulators, and consumers alike.

Neil Spector, President of Underwriting Solutions at Verisk, emphasised the company’s commitment to adapting and responding to the evolving insurance regulatory landscape with their extensive data and compliance services.

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