Contract-relevant information asymmetries are known to cause inefficien-cies in markets. The information asymmetry is largest in the beginning of the customer-insurer relationship but reduces over time; the longer a poli-cyholder stays with the insurer the more the insurer learns about the...

Risky driving behavior is regarded as being one of the best predictors of traffic accidents. Traffic violations certainly signal risky driving behvior, but the analysis of the linkage of traffic violations, individual and vehicle characteristics and annual mileage has so far been hampered by the...

Automobile insurers currently use available information about the vehicle, the owner and residential area when determining the probability of a claim (insurance risk). A drawback is that several risk classification variables are based on the policyholder’s self-reported risk. This study...

This paper empirically investigates the effect of policyholders’ private information about risky traffic behavior on automobile insurance coverage and ex post risk. It combines insurance company information with the policyholders’ private information on risky traffic behavior (traffic...

Risky driving behavior is regarded as being one of the best predictors of traffic accidents. Traffic violations certainly signal risky driving behavior, but the analysis of the linkage of traffic violations, individual and vehicle characteristics and annual mileage has so far been hampered by...

Contract relevant information asymmetries are known to cause inefficiencies in markets. The information asymmetry is largest in the beginning of the customer insurer relationship but reduces over time; the longer a policyholder stays with the insurer the more the insurer learns about the...