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 …

Is the reputation of a firm tradeable when the previous owner has to retire even though ownership change is observable … good type. Hence reputation is tradeable, although ownership change is observable. In our model, reputation is an …

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

retirement. In order to introduce the existence of limited-time pension insurance, we assume that for each period of retirement … that different risk-groups prefer different types of contracts, and that only the sequential contracts, which are …

uncertainty decreases the rate of efficient service provision and leads to less trade. In theory, insurance also decreases the … that considers both diagnostic uncertainty of sellers and the effects of insurance coverage of consumers in a unified … framework. We test the model’s predictions in a laboratory experiment. Both in theory and in the experiment diagnostic …

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 …

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 …

We consider a competitive insurance market with adverse selection. Unlike the standard models, we assume that … limited liability afforded via bankruptcy laws. Government assistance is calculated ex post of any insurance benefits. This … alters the individuals' demand for insurance coverage. In turn, this affects equilibria in various insurance models of …