Showing 1 - 10 of 299
This paper presents a new axiomatic characterization of risk measures that are additive for independent random … variables. In contrast to previous work, we include an axiom that guarantees monotonicity of the risk measure. Furthermore, the …. The risk measure characterized can be regarded as a mixed exponential premium. …
Persistent link: https://www.econbiz.de/10011334834
markets with small initial loss sizes, insurers may try to raise these in order to create demand for insurance. After having … defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … power have incentives to create insurance markets. Insurer competition will push their profits to zero but markets do not …
Persistent link: https://www.econbiz.de/10011456744
We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and … insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from … diversification within large banks and financial conglomerates. We discuss the limited value of the normal distribution based …
Persistent link: https://www.econbiz.de/10011346454
the insurance sector. The downside risk of insurers is explicitly modelled by common and idiosyncratic risk factors. Since … results point to a relatively low insurance sector wide risk. Dependence among insurers is higher than among reinsurers. … reinsurance is important for the capacity of insurers, we measure risk dependence among European insurers and reinsurers. The …
Persistent link: https://www.econbiz.de/10011349192
consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution. …
Persistent link: https://www.econbiz.de/10013186823
insurance mechanisms, bride wealth qualifies as an importantsecurity enhancing institution: the arrangement covers nearly the …
Persistent link: https://www.econbiz.de/10011303853
This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex …
Persistent link: https://www.econbiz.de/10011376656
worker buys an insurance, which gives a constant income and retirement benefits in exchange for the total output. The level …
Persistent link: https://www.econbiz.de/10011334338
Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the expected profit maximizing loss probability within an...
Persistent link: https://www.econbiz.de/10010395085
We offer a theory of how the combination of budget constraints and insurance drives up prices. A natural context for …
Persistent link: https://www.econbiz.de/10012416335