Risk Classification Statement of Principles¶
American Academy of Actuaries. (1980). Risk Classification Statement of Principles.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Majority-Dominated Aggregate Objective
- Insurance and actuarial pricing — pricing optimized on expected loss works in aggregate while systematically failing high-cost minority segments.
This sourceStates that actuarial pricing places each risk in a class whose premium matches its expected cost, so that pricing optimized on expected loss can systematically diverge for high-cost minority segments under coarse or constrained classification.
- Insurance and actuarial pricing — pricing optimized on expected loss works in aggregate while systematically failing high-cost minority segments.
Verification¶
This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.
Registry ID ref:5882dcca08d6 · see in the full table