contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

insurance solutions through to injustices of a minor and inconspicuous nature. We illustrate that the measures taken depend on … the uncertainty about the risks in question, and involve three trade-offs: innovation vs. risk avoidance; liability vs …. collective risk sharing; and equity vs. practicable claims settlement. We study two highly instructive examples: nuclear …

an insurance captive, the advantages and disadvantages thereof, and the effects for risk management and risk financing …Captive insurance companies are ‘in-house' (re)insurance companies formed with the specific objective of insuring the … risks of their parent company and/or its affiliated companies. This alternative form of risk management is potentially or in …

(UBI) contracts that incorporate behavioral risk factors in pricing. Economic theory predicts that any informative …Technological progress has improved insurers' ability to monitor policyholders and has led to usage-based insurance … market shares in the single digits. We modify the standard moral-hazard model in insurance economics by trading off a simpler …

that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …

's (1976) model of competitive insurance. I allow for stochastic contract offers by insurance firms and show that a unique … mixed equilibrium features (i) cross-subsidization across risk levels, (ii) dependence of offers on the risk distribution …

This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex … ante moral hazard) and claim (ex post moral hazard) choices and Dutch longitudinal micro data. We use the theory to …

We show that on-demand insurance contracts, an innovative form of coverage recently introduced through the InsurTech …), Miyazaki (1977) and Spence (1978). Consumers have private information on their risk profile and the frequency with which they …

insurance. For this we specify and estimate dynamic models for health insurance decisions and health care utilization. Estimates …