IDEAS home Printed from https://ideas.repec.org/a/spr/sochwe/v19y2002i1p113-125.html
   My bibliography  Save this article

Equitable insurance premium schemes

Author

Listed:
  • Marc Fleurbaey

    (CATT, THEMA, Université de Pau, Avenue de l'Université, 64000 Pau, France)

  • Walter Bossert

    (Département de Sciences Economiques and C.R.D.E., Université de Montréal, C.P. 6128, succursale Centre-ville, Montréal QC H3C 3J7, Canada)

Abstract

We analyze the equity properties of insurance premium schemes where agents are partitioned into groups with different average accident probabilities and each individual has to pay a premium according to the average probability of the group to which it belongs. In particular, we examine the question whether choosing finer partitions to define these groups generates more equitable situations than coarser groups. Though it turns out that partitioning the agents into finer groups can never be Lorenz dominated by the coarser partition, it cannot be guaranteed that finer partitions represent improvements over coarser ones except in very restrictive circumstances.

Suggested Citation

  • Marc Fleurbaey & Walter Bossert, 2002. "Equitable insurance premium schemes," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 113-125.
    • Handle: RePEc:spr:sochwe:v:19:y:2002:i:1:p:113-125
    Note: Received: 27 March 2000/Accepted: 28 August 2000
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00355/papers/2019001/20190113.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aboudi, Ronny & Thon, Dominique, 2006. "Refinements of Muirhead's Lemma and income inequality," Mathematical Social Sciences, Elsevier, vol. 51(2), pages 201-216, March.
    2. Marc Fleurbaey, 2014. "The facets of exploitation," Journal of Theoretical Politics, , vol. 26(4), pages 653-676, October.
    3. Michael Hoy & Michael Ruse, 2005. "Regulating Genetic Information in Insurance Markets," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 8(2), pages 211-237, September.
    4. Satya R. Chakravarty & Claudio Zoli, 2019. "Stochastic Dominance Relations for Integer Variables," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 211-222, Springer.
    5. Michael Hoy & Julia Witt, 2007. "Welfare Effects of Banning Genetic Information in the Life Insurance Market: The Case of BRCA1/2 Genes," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 74(3), pages 523-546, September.
    6. Yann Braouezec, 2015. "Public versus Private Insurance System with (and without) Transaction Costs: Optimal Segmentation Policy of an Informed monopolistPublic versus Private Insurance System with (and without) Transaction ," Working Papers 2013-ECO-23, IESEG School of Management, revised May 2014.
    7. Michael Hoy & Michael Ruse, 2008. "“No Solution to This Dilemma Exists”: Discrimination, Insurance, and the Human Genome Project," Working Papers 0808, University of Guelph, Department of Economics and Finance.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sochwe:v:19:y:2002:i:1:p:113-125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.