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The Conversation
The Conversation
Arthur Charpentier, Professeur de mathématiques, Université du Québec à Montréal (UQAM); Université de Rennes 1 - Université de Rennes

Will AI make cheaper personalized insurance premiums possible? Here’s why it’s a slippery slope

Insurance is based on a principle of solidarity, but that is now being undermined by the algorithms used to build our profiles.

As these algorithms grow more sophisticated and precise, premiums become increasingly personalized. That means “high-risk” profiles may end up excluded from insurance schemes altogether because the costs become prohibitive. Personalizing has some legitimacy, but it must be balanced with fair access to insurance.

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