FSRA2022-004-3 - AIP Actuarial & Operational Risk Management Consulting Contracts

This initiative aims to address the shortage of internal credentialed actuaries and provide qualified actuarial opinions in reviewing and approving rate filing activities, as well as fulfilling operational requirements and expectations. AIP intends to issue Requests for Proposals (RFPs) for three consulting contracts that will

1. Predictive Model Review - Experience and expertise in comprehensive review of predictive models used in auto insurance rating and underwriting, which encompasses comprehensive analysis of predictive models and rating algorithms, segmentation methodologies and pricing strategies, provide recommendations and opinions to regulators on the justness, reasonableness, and rationality of model results.

2. Filing Process and Guidance - Experience and expertise in auto insurance rating and underwriting, including techniques such as ratemaking, reserving, and predictive models, with the ability to design and offer insight into rate filing guidance that aligns with FSRA's principle-based and outcome-focused approach.

3. Fairness and Fairness Assessment - Experience and expertise in fairness in auto insurance rating and underwriting, with the ability to identify, measure, detect, and offer solutions to rectify potential unfair discrimination in the rating and underwriting system. Expertise in understanding vulnerable or protected classes, bias, and discrimination in the auto insurance system, and offering advice on solutions.