Fairness-Aware Insurance Pricing with Multi-Objective Optimization
Analysis
Key Takeaways
- •Proposes a multi-objective optimization framework for fairness-aware insurance pricing.
- •Uses NSGA-II to generate a Pareto front of trade-off solutions.
- •Addresses the limitations of single-objective optimization in balancing competing fairness criteria.
- •Evaluates different models (GLM, XGBoost, Orthogonal, Synthetic Control) across various fairness metrics.
- •Demonstrates the potential for more equitable and regulatory-compliant insurance pricing.
“The paper's core contribution is the multi-objective optimization framework using NSGA-II to generate a Pareto front of trade-off solutions, allowing for a balanced compromise between competing fairness criteria.”