Premium disparities exposed as EU AI Act tightens oversight on insurers
Published on: Aug. 23, 2025, 10:55 p.m. | Source: Devdiscourse
The study uncovers significant pricing disparities in existing underwriting systems. Premiums for low-income policyholders are elevated by 5.8% in life insurance and 7.2% in health insurance compared to actuarially fair benchmarks. These discrepancies, the authors note, are driven by proxy variables embedded within machine learning models, such as occupational codes and urban density indicators, which indirectly amplify socio-economic biases in risk assessments.
