Recent Findings from National University of Distance Education Has Provided New Information about Human Sciences (What Was Fair In Actuarial Fairness?)

2019 OCT 28 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Science Daily -- Data detailed on Science - Human Sciences have been presented. According to news reporting from Madrid, Spain, by NewsRx journalists, research stated, “In actuarial parlance, the price of an insurance policy is considered fair if customers bearing the same risk are charged the same price. The estimate of this fair amount hinges on the expected value obtained by weighting the different claims by their probability.”

Financial support for this research came from Spanish Ministerio de Economia y Ciencia.

The news correspondents obtained a quote from the research from the National University of Distance Education, “We argue that, historically, this concept of actuarial fairness originates in an Aristotelian principle of justice in exchange (equality in risk). We will examine how this principle was formalized in the 16th century and shaped in life insurance during the following two hundred years, in two different interpretations. The Domatian account of actuarial fairness relied on subjective uncertainty: An agreement on risk was fair if both parties were equally ignorant about the chances of an uncertain event. The objectivist version grounded any agreement on an objective risk estimate drawn from a mortality table.”

According to the news reporters, the research concluded: “We will show how the objectivist approach collapsed in the market for life annuities during the 18th century, leaving open the question of why we still speak of actuarial fairness as if it were an objective expected value.”

For more information on this research see: What Was Fair In Actuarial Fairness? History of the Human Sciences, 2019;():. History of the Human Sciences can be contacted at: Sage Publications Ltd, 1 Olivers Yard, 55 City Road, London EC1Y 1SP, England. (Sage Publications - http://www.sagepub.com/; History of the Human Sciences - hhs.sagepub.com)

Our news journalists report that additional information may be obtained by contacting D. Teira, National University of Distance Education, Hist & Philosophy Sci, Madrid, Spain. Additional authors for this research include A.J. Heras and P.C. Pradier.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1177/0952695119856292. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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