Insurance contracts are often complex and difficult to verify outside the insurance relation. We show that standard one …-period insurance policies with an upper limit and a deductible are the optimal incentive-compatible contracts in a competitive market … with repeated interaction. Optimal group insurance policies involve a joint upper limit but individual deductibles and …

Under certain conditions the optimal insurance policy will offer full coverage above a deductible, as Arrow and others … have shown long time ago. Interestingly, the same design of insurance policies applies in case of a single loss and ex …-ante moral hazard. However, many insurance policies provide coverage against a variety of losses and the possibilities for the …

risks, insofar as they may provide coverage at a lower cost than standard insurance schemes. …

correlation in their assets (health, wealth, wisdom, i.e. skills), causing them to demand a great deal of insurance coverage …. Insurers on the other hand eschew positively correlated risks. It can be shown that insurance contributes to a reduction of … insurance. Analyzing deviations from trend in aggregate insurance payments, one finds the following for the United States and …

other, but not to a larger degree than dictated by the social norm. We compare such informal family insurance with … actuarially fair formal insurance. We show that coerced family altruism reduces individual efforts in equilibrium. However … show that if family members are sufficiently altruistic to each other, then informal family insurance by way of coerced …

Expected utility theory holds that the demand for insurance is a demand for certainty, because under the conventional … specification of the theory, it appears as if buyers of insurance prefer certain losses to actuarially equivalent uncertain ones … paper attempts to reconcile expected utility theory with this empirical evidence by suggesting that insurance is demanded to …

Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast … uncertainty about fraud detection can be an effective strategy to deter ambiguity-averse agents from reporting false insurance …

We discuss the prevalence of pooling equilibria in a two-period model of an insurance market with asymmetric …

Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast … uncertainty about fraud detection can be an effective strategy to deter ambiguity-averse agents from reporting false insurance …