Insurance guarantee schemes aim to protect policyholders from the costs of insurer insolvencies. However, guarantee …-shifting behavior for insurance guarantee schemes under the two different financing alternatives: a flat-rate premium assessment versus … expected utility. We find that the risk-based insurance guarantee scheme can only mitigate the insurer's risk-shifting behavior …

Persistently high profits on “insurance” for small value losses sold as an add-on to other products or services (such … insurance sold with a loan) pose a twofold challenge to the standard economic analysis of insurance. First, expected utility … theory teaches that people should not buy insurance for small value losses. Second, the market should not in the long run …

Credit related insurance and other debt protection are products sold in conjunction with credit that extinguish a … penetration rates observed in the 1950s and 1960s raised concerns about coercion in the sale of credit insurance. This study … presents evidence on credit insurance purchase and debt protection decisions from a new survey. The findings provide little …