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Big data and risk classification: Understanding the actuarial and social issues

 

The Canadian Institute of Actuaries believes that the use of big data is appropriate in insurance ratemaking. Access to such data creates improved insight about risk and its contributing factors, while restricting access to this data could adversely affect the availability or price of insurance for individuals.

Canada’s actuaries stress that big data – like all data used in ratemaking – is subject to the ethical data collection practices, privacy laws, and information security requirements necessary to protect consumers.

With thoughtful innovation and evolution in the use of big data, in collaboration with proper limitations to ensure that the public interest is at the forefront of insurance and policymaking, we can collectively make progress toward reducing risk and refining insurance costs.


For media queries or to discuss the statement, contact [email protected].