102 karma · joined November 14, 2018
It's even more constrained than my experience. The U.S has two actuarial governing bodies: the CAS and SOA - the former handles P&C, the latter just about everything else (life, health, retirement). The two organizations hate each other and it's almost impossible to get a respectable job in one industry if you have the wrong credentials. What makes it even more crazy is that the two orgs have the same exact first couple of qualifying exams.
My advice has always been: only consider dedicating your time to these exams if you're highly certain this is the career you want. The pay isn't as great as it once was, you're constrained to legacy industries, the process is as time-consuming as a PhD without getting the respect that comes along with it, and you need to decide early on which area of insurance you'll want to practice.
For good reasons, guardrails are required to not only protect against discrimination, but also so proxies can't be used either. For example, we can't include race in health and life underwriting decisions. But since zip code is highly predictive of race, that attribute must also be excluded.
I'm not familiar with banking regulations, but imagine similar policies are applied. In these cases, being able to demonstrate that a model isn't discriminating is not only ethically important, but in many cases is legally required.
[0]. mib.com
Bias in this context can be simply interpreted as analogous to the intercept in y = mx + b. Kind of like the baseline when no additional information is given.