Log in / My SOA

Fairness Metrics for Life Insurance

soa-research-societal-purpose-logo.png

February 2026

This paper offers a critical and practical framework to help evaluate and implement fairness in life insurance, recognizing that fairness is contextual and not one-size-fits-all.

Measuring fairness in life insurance is inherently complex. The paper reveals that fairness criteria varies for both individuals and groups. The paper demonstrates that each approach carries ethical, operational, and financial trade-offs for insurers.

  • The Fairness Metrics for Life Insurance report presents a practical framework for evaluating fairness in life insurance practices without advocating for or against either any particular definition or metric of fairness.
  • The report distinguishes individual fairness, which aligns with actuarial principles by matching premiums to risk, from group fairness, which promotes parity across demographic or other cohorts.
  • The report explains that these two concepts often conflict—achieving both simultaneously is usually impossible.

Authors

Eric Krafcheck, FCAS, MAAA, Milliman Inc
Igor Balnozan, Ph.D., University of New South Wales
Fei Huang, Ph.D., University of New South Wales

Material

Fairness Metrics for Life Insurance

Suggested Citation

Krafcheck, Eric, Balnozan, Igor, and Huang, Fei. Fairness Metrics for Life Insurance. Society of Actuaries Research Institute, February 2026. https://www.soa.org/resources/research-reports/2026/fairness-metrics-life-insurance/

Acknowledgements

Thank you to the Project Oversight Group members:

Dorothy L. Andrews, ASA, CSPA, MAAA, Ph.D.
Brian Bayerle, FSA, MAAA
Andrew Clark, PhD
Bruce A. Friedland, FSA, MAAA, CLU, ChFC, MBA,
Thomas P. Hinrichs, FSA, MAAA
Hezhong (Mark) Ma, FSA, MAAA
Shisheng (Rose) Qian, FSA, CERA
David Sandberg, FSA, CERA, FCA, MAAA
Mark A. Sayre, FSA, CERA
David Schaub, FSA, CERA, MAAA, AQ
Matthew S. Wolf, FSA, CERA, MAAA

At the Society of Actuaries Research Institute:

Lisa S. Schilling, FSA, EA, FCA, MAAA
Barbara Scott, Senior Research Administrator

Questions or Comments?

Give us your feedback! Take a short survey on this report. Take Survey

If you have comments or questions, please send an email to Research@soa.org