What should be the fair premium of an insurance policy?

Authors

DOI:

https://doi.org/10.24310/Contrastescontrastes.v27i2.13045

Keywords:

Actuarial fairness, mathematical expectation, shared uncertainty, contractualism

Abstract

Traditionally, the premiums of the insurance contracts have been considered fair when they mirror exactly the risk of the policies, measured as the mathematical expectation of their claims. In this paper we criticize this seemingly objective approach and we propose an alternative justification for the actuarial fairness, based on contractualist arguments. We build on some intuitions of the 17th French jurist Jean Domat about the shared uncertainty among the stakeholders, in the general framework of the contractualist theory of the contemporary philosopher and economist Robert Sugden.

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Published

2022-03-07

How to Cite

Heras, A. (2022). What should be the fair premium of an insurance policy?. Contrastes. Revista Internacional De Filosofía, 27(2), 147–165. https://doi.org/10.24310/Contrastescontrastes.v27i2.13045

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ARTICLES