The Influence and Considerations of Social Responsibility In Health Insurance Actuarial Science

Abstract

 In recent years, as the public pays increasing attention to social equity and sustainability, the health insurance industry is facing new responsibilities and challenges.This paper discusses the intersection between health insurance actuarial science and corporate responsibility. Traditional health insurance actuarial pricing models rely on the principle of actuarial fairness, where premiums are risk-based and charged higher for individual with greater risks. However, in response to the evolving ESG (Environmental, Social, and Governance) standards, insurers must expand their focus beyond narrow risk pools to societal impact. This paper examines the limitations of traditional health insurance actuarial models under new challenges, exploring how pricing mechanisms and product design can be reshaped to meet the evolving social expectations while remaining profitable. Moreover, this paper discusses the future directions in actuarial science for health insurance, pointing out some potential opportunities.