While the benefits of risk-based pricing are clear, there are undoubtedly opportunities to strengthen the ecosystem. This paper makes policy recommendations to increase equity in the risk-based pricing system while leveraging the aspects that work, but we know that the general economic opportunity and full potential for minorities and underserved communities has yet to be fully embraced and realized in America. All Americans should have a fair chance to earn their success, rise on their merit, and live their own American Dream.
Last year, the U.S. Chamber of Commerce launched the Equality of Opportunity Initiative to develop real, sustainable solutions to help close race-based opportunity gaps in six areas: education, employment, entrepreneurship, criminal justice, health, and wealth. Inequalities in these six areas perpetuate broader inequalities in our society, hold back individual and business success, and hinder economic growth.
Driven by data and informed by conversations with business, government, academics, and civic leaders, we developed the Equality of Opportunity Agenda to advance private sector solutions and best practices, scale impactful programs, and drive policy action at the federal, state, and local level. In early 2021, the U.S. Chamber of Commerce established task forces around six main pillars as well as access to capital and supplier diversity. These conversations are bringing together business, policy experts, and others to share and discuss strategies to advance progress on these issues and solutions in the years to come—including opportunities to strengthen the risk-based pricing system.
