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This paper deals with the optimal design of insurance contracts when the administrative costs borne by a risk-neutral insurer are non-linear and when the insured person bears a single risk. Thanks to a unique optimality condition, we unify and generalize the results stressed in the literature,...
Persistent link: https://www.econbiz.de/10005035857
In this paper we focus on optimal insurance contracts when the insured person is forced to bear a risk of wrong estimation of his loos made by the insurer. We extend the scope of the existing models by taking simultaneously into account non-linear administrative costs and prudence.
Persistent link: https://www.econbiz.de/10005641005