New framework balances actuarial and solidarity fairness in insurance pricing
2026-06-16
Researchers propose a new framework, $\alpha$-Fair Individual Solvent Premium ($\alpha$-FISP), to address the inherent tension between actuarial and solidarity fairness in insurance pricing. The model allows for a continuum of pricing strategies, balancing risk differentiation with cross-subsidization.
Source: arXiv · cs.LG
Reported by VERA Newswire.