such insurance lines, securitizationis rapidly emerging as an alternative form of risk transfer. The ultimatesuccess of …, which illustrate ourmethodology in several types of insurance markets subject to systemic risk. …High correlations between risks can increase required insurer capital and/orreduce the availability of insurance. For …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …

People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many … homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts … to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …

This paper uncovers if and how insurance companies react to shocks to collateral in their portfolio of securitized … surge in small banks holding CMBS—and the composition of their CMBS portfolio affects their trading behavior in other assets …. Our results indicate that institutional investors actively monitor underlying asset risk, and even gain an informational …

fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over … whose type turns out to be high risk but low demand renew more of their GR insurance than is efficient due to the attractive …

This paper estimates a reduced-form model to assess the credit risk of General Insurance (GI) non-life firms in the UK … wider set of possible determinants of credit risk. The empirical results suggest that macroeconomic and firm …-specific factors both play important roles. Other key findings are the following: credit risk varies across firms depending on their …

. The pandemic risk cannot be mutualized since it affects simultaneously a large number of businesses, and furthermore, it … risk coverage mechanisms based on a portfolio of financial securities, including long-short positions and options in stock … conclusions are derived from a theoretical model of corporate risk management, and they are illustrated by numerical simulations …

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …

, and climate change is predicted to intensify this problem. The Index-Based Livestock Insurance (IBLI) scheme piloted in …