FCA Consumer Duty, PRA SS1/23, proxy discrimination under IPID, and the model risk governance requirements that now sit alongside them. Regulatory obligations translated into audit-ready Python workflows. 21 articles.
SS1/23 is in active enforcement for banks. Its monitoring principles — operating boundaries, outcome analysis, documented escalation — are the benchmark the whole market is bein...
UK motor NCR is at 111% (EY Q4 2024). The market is at or near technical floor. Here is how to identify underpriced segments using loss cost trending, A/E monitoring, and Bühlma...
A companion post to our March coverage of arXiv:2603.17106. This one walks through the code: where exactly in a UK proxy-based fairness audit does the bias from Xin et al. enter...
SS1/23 applies to banks, not insurers — but its monitoring principles are the benchmark auditors use regardless. This post maps the five SS1/23 validation principles to what a p...
FCA cohort 2 is live as of April 2026. This post maps the four things a submission actually needs to include — outcome monitoring, proxy bias detection, uncertainty quantificati...
The FCA is consulting in Q2 2026 on exactly this question. Every layer in a DA chain — insurer, MGA, broker, PCW — is expected to evidence outcomes, not just process. Here is wh...
FCA AI Live Testing cohort 2 opened in January 2026. Testing is live from April. Firms in scope for AI underwriting and pricing need to demonstrate four things: outcome monitori...
The FCA confirmed its motor finance redress scheme on 30 March 2026 — £7.5bn, 12.1m agreements, going back to 2007. The enforcement pattern is not motor-finance-specific. Insura...
Thibodeau et al. build a multi-firm market simulator and train an RL social planner to design fairness tax schedules. The collusion result stops the paper cold: a cartel that ex...
An FCA Research Note (December 2025) found a £28 unexplained ethnicity residual across six million motor policies. Your pricing team cannot measure it because you do not hold et...
Flood Re ends in 2039. From that date, 350,000+ currently subsidised properties need risk-reflective pricing. We work through Moriah et al. 2026's sequential GLM using geolocate...
The FCA's pure protection market study interim report landed in January 2026. The final report is due Q3 2026. For income protection pricing teams, the central question is wheth...
The FCA published its first consolidated insurance priorities report on 24 February 2026. It replaces individual portfolio letters and signals where regulatory action is coming ...
Pricing teams treat fairness as a single slider between accuracy and parity. NSGA-II reveals it is a landscape with multiple competing criteria. Here is what the Pareto front lo...
Kong, Liu & Yang prove that standard conformal coverage guarantees degrade unevenly when protected attributes are absent at test time. With post-ECJ gender prohibition and GDPR ...
insurance-governance v0.3.0 adds ExplainabilityAuditTrail: a per-prediction audit log that records SHAP values, fairness flags, and plain-language summaries for every pricing de...
The FCA has flagged travel insurance for mental health conditions and contents insurance for social renters as supervisory priorities. Here is what ML can genuinely help with, w...
Protected NCD is widely misunderstood by consumers, and the product may not deliver the value it charges for. The Consumer Duty fair value test and the hunger-for-bonus literatu...
The FCA's February 2026 insurance priorities report signals active supervisory review of AI pricing in Q1-Q2 2026. Under existing PRIN 2A, firms must already demonstrate Consume...
The FCA published its first annual insurance regulatory priorities document in February 2026. Here is everything a pricing actuary needs to do in response — ten action items wit...
Solvency II requires age-based pricing. EU AI Act Article 21 lists age as a prohibited characteristic. Chouldechova's impossibility theorem shows you cannot satisfy both fairnes...
Age is a legally permitted rating factor under Solvency II. Age is also a protected characteristic under EU law. The EU AI Act imposes non-discrimination obligations on high-ris...
EIOPA published its AI Governance Opinion (EIOPA-BoS-25-360) in August 2025. It names the actuarial function as responsible for AI controls, endorses SHAP and LIME explicitly, a...
Thibodeau et al. build a multi-firm market simulator and demonstrate the collusion pathology: a cartel that excludes every income group equally passes standard demand-fairness m...
In January 2026 the PRA named AI as an insurance supervisory theme for the first time. The FCA published a bias research note in December 2024. The FRC updated TAS 100 to make b...
The FCA published its final premium finance market study on 3 February 2026. No APR cap was imposed. That does not mean your book is clean. Here is what changed, what double dip...
The FCA's 2026 access priorities are not a compliance problem — they are an actuarial evidence problem. The question is whether the data exists to justify what your models are d...
We published a post three weeks ago treating all insurance pricing models as potentially high-risk under the EU AI Act. After reading the primary sources, we need to correct thr...
Most industry guidance on the EU AI Act and insurance pricing is wrong in ways that matter. Motor and property pricing is not high-risk AI. Traditional GLMs may not be AI system...
A step-by-step guide to building an EU AI Act conformity assessment for an insurance pricing model. Covers risk classification, Article 11 technical documentation, Article 14 hu...
Article 13 of the EU AI Act is not about SHAP values. It is about deployer-facing documentation — what the underwriter or product team needs to interpret and use a pricing model...
Miao & Pesenti (arXiv:2603.16720) derive discrimination-insensitive premiums by finding the probability measure nearest to the real-world measure in KL-divergence, subject to ze...
A new paper (Xin, Hooker, Huang 2026) shows that BIFSG proxy race distorts regression-based fairness audits in two distinct mechanisms — and the direction of distortion is group...
Two deregulatory signals in the FCA's February 2026 insurance priorities document. The SMCR one is almost entirely administrative. The Consumer Duty one is real but has no CP nu...
FCA PS26/2 (March 2026) creates mandatory incident reporting and material third party registers for all authorised insurers. Every pricing actuary who owns a rating API, renewal...
The FCA's Mills Review is not another compliance checklist — it is the regulator thinking aloud about how UK financial services might look in 2030. Pricing teams should read it ...
The complete PS21/5 compliance workflow: CATE estimation with insurance-causal, ENBP-constrained optimisation with insurance-optimise, fairness audit with insurance-fairness, an...
UK GDPR constrains what pricing data you can share across entities. Federated learning and differential privacy offer a way around the constraint — but only if you understand wh...
FCA MS24/2 (February 2026) means pricing teams now own the APR question. Here is how to treat it as a pricing problem — with the same tools used for the insurance itself.
The FCA has explicitly flagged pet insurance for monitoring in its 2026 regulatory priorities. FOS complaint upheld rates hit 52% in Q1 2025 — the highest of any UKGI business l...
Scenario modelling for UK motor bodily injury claims under whiplash reform uncertainty — Taylor separation, severity distributions, and conformal prediction intervals.
The FCA's interim report on MS24/1 landed in January 2026 with a Q3 2026 final report expected. Here is what pure protection pricing teams need to build before that lands.
FCA EP25/2 published July 2025. Expected claim costs per home policy up 49% from £92 to £138. Average inception premium up only 5%. The data says insurers absorbed the shock — n...
The FCA has committed to evaluating how UK insurers use AI in pricing, underwriting, and claims. No new AI-specific rulebook is coming — but the regulator now expects evidence, ...
The FCA replaced 40+ portfolio letters with a single annual priorities document on 24 February 2026. Here is what it says, what it means for pricing teams, and which library too...
A February 2026 paper from Lim, Xu, and Zhou cracks open the problem of fair pricing in multi-state insurance products — the ones that matter most for Consumer Duty obligations ...
Life and health insurance pricing models are high-risk AI under Annex III of the EU AI Act. General insurance (motor, home) may also be in scope but the classification is not ex...
BCG's 2025 analysis puts embedded insurance at 30% CAGR. The pricing architecture question is not whether to do it - it's whether your model can answer in under 100ms without co...
arXiv:2504.16592 formalises what pricing teams have been quietly observing for years: autonomous pricing algorithms can converge to supra-competitive prices without any firm eve...
PS25/21 abolished the mandatory 12-month product review cycle in December 2025. Harm-proportionate review cadence is now the requirement. Here is what that means for actuarial g...
Under Consumer Duty and the Equality Act 2010, non-life insurers must test whether rating factors act as proxies for protected characteristics. Here is exactly how to run that t...
Fairlearn is excellent for classification fairness. It was not built for insurance pricing, the Equality Act 2010, or the FCA's specific concern: proxy discrimination in a multi...
EquiPy is a technically excellent fairness correction tool built on optimal transport theory, from Arthur Charpentier's group at UQAM. insurance-fairness is an FCA-focused proxy...
insurance-governance merges insurance-validation and insurance-mrm. PRA SS1/23 statistical validation and MRM governance in one install - no version conflicts.
DiD and Callaway-Sant'Anna for rate change attribution. insurance-causal-policy quantifies what your rate change actually achieved, with FCA Consumer Duty-aligned evidence output.
Model risk governance for UK insurers: model inventory, risk tier scoring, exec committee reports. Built on SS1/23 principles (formally a banking standard, widely adopted by ins...
Champion/challenger with ICOBS 6B.2.51R compliance for UK insurers. SHA-256 routing, SQLite logging, bootstrap LR tests, SMF-signable report - insurance-deploy.