Chalkias, K. orcid.org/0000-0001-5365-9579, Jarzabkowski, P., Kavas, M. orcid.org/0000-0002-6881-2262 et al. (1 more author) (2025) That's not fair! Navigating the duality of fairness in insurance. The British Journal of Sociology. ISSN 0007-1315
Abstract
Insurance serves as a social good, providing financial protection against disasters whilst operating within a profit-driven market. This dual role highlights the complex intersection of social and commercial interests, raising a fairness puzzle often portrayed as a trade-off between solidarity and actuarial fairness. Insurance organisations adhere to actuarial fairness by setting insurance premiums proportional to each individual's risk. As extreme weather drives greater losses in high-risk areas, actuarial fairness often results in unaffordable premiums for many. To address this, societies may adopt principles of solidarity fairness to subsidise their premiums. However, this approach threats diminishing personal responsibility to contain risk, as individuals may rely on subsidised protection rather than taking proactive measures. This study draws on a longitudinal qualitative study of a government-legislated insurance organisation to develop a process framework that reconceptualises fairness in insurance as a duality of solidarity and actuarial fairness. It offers insights into designing insurance systems that are socially equitable and financially sustainable.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Author(s). The British Journal of Sociology published by John Wiley & Sons Ltd on behalf of London School of Economics and Political Science. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. http://creativecommons.org/licenses/by/4.0/ |
Keywords: | dual mission; duality; fairness; insurance; unaffordability |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 17 Mar 2025 14:53 |
Last Modified: | 17 Mar 2025 14:53 |
Status: | Published online |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/1468-4446.13206 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:224522 |