A contractarian approach to actuarial fairness

We defend, from a contractarian perspective, that the fair price of an insurance policy is the amount that the contracting parties agree when they are both equally uncertain about the insured event. Drawing on the approach developed by R. Sugden in The Community of Advantage, we answer two standard...

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Detalles Bibliográficos
Autores: Heras Martínez, Antonio José, Pradier, Pierre Charles, Teira Serrano, David
Tipo de recurso: artículo
Fecha de publicación:2024
País:España
Institución:Universidad Nacional de Educación a Distancia
Repositorio:e-spacio. Repositorio Institucional de la UNED
Idioma:inglés
OAI Identifier:oai:e-spacio.uned.es:20.500.14468/19411
Acceso en línea:https://hdl.handle.net/20.500.14468/19411
Access Level:acceso abierto
Palabra clave:actuarial fairness
contractarianism
risk
Descripción
Sumario:We defend, from a contractarian perspective, that the fair price of an insurance policy is the amount that the contracting parties agree when they are both equally uncertain about the insured event. Drawing on the approach developed by R. Sugden in The Community of Advantage, we answer two standard objections raised against contractarianism in the actuarial sciences: 1) people are not wise enough to assess their actuarial risks; 2) they are not rational enough to decide which insurance policy suits them better. We show under which circumstances people can make fair actuarial agreements, without presupposing any objective risk or rationality benchmarks.