Chalkias, Konstantinos and Jarzabkowski, P. and Kavas, M. and Krull, E. (2025) That's not fair! Navigating the duality of fairness in insurance. The British Journal of Sociology , ISSN 0007-1315.
![[img]](https://eprints.bbk.ac.uk/style/images/fileicons/text.png) |
Text
55193.pdf - Published Version of Record Available under License Creative Commons Attribution. Download (690kB) |
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 |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Administrator |
| Date Deposited: | 17 Mar 2025 14:06 |
| Last Modified: | 01 Apr 2025 01:30 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/55193 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
