Tesla tricked into reacting to false lane markers
US insurer Allstate increased premiums for customers already paying the highest rates for their insurance, while keeping premiums more or less the same for 'thriftier' customers. A joint investigation by The Mark Up and Consumer Reports found that Allstate devised a 'customer retention model' or 'advanced' price adjustment algorithm that identified existing big spenders and squeezed more money out of them than others. The algorithm also determined customers which customers were owed discounts. Though some customers were owed thousands of dollars, Allstate capped the discounts at a half percent irrespective of the amount owed. Senior customers were overrepresented within this cohort. Insurers are not obliged to inform customers if they are denied discounts, and the National Association of Insurance Commissioners told The Markup that it had never heard of an insurer voluntarily informing its customers that they had been denied a discount. Maryland rejected Allstate’s proposal on the grounds that it was discriminatory. However, it was approved by Arizona, Arkansas, Wisconsin, and a number of other US states. System 🤖 Allstate customer retention model Operator: Allstate Developer: Allstate Country: USA Sector: Banking/financial services Purpose: Assess customer risk Technology: Price adjustment algorithm Issue: Bias/discrimination
- Date it happened
- 2020-02-01
- Organisation involved
- Ben-Gurion University
- Product, system or model
- Tesla Autopilot
This incident was imported from AIAAIC and is used under CC BY-SA 4.0. Our additions to it — the structured fields, the translation, the checks against other reports — are published under the same licence.
This is a record of what was reported, not a finding that anyone broke the law. If it names your organisation and you believe it is wrong, the corrections process is free and open to everyone.