Kenneth Arrow and Karl Borch published several important articles in the early 1960s that can be viewed as the beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical contributions in insurance economics since that time. The review...

Objective: The objective of this article is to study the correlations between the most important European insurers and their participation in systemic risk in the insurance sector. We compare systemic risk in different market regimes. Research Design & Methods: We use statistical clustering...

One of the most significant economic developments of the past decade has been the development of innovative risk-financing techniques in the insurance industry. Innovation has been driven by the increase in the frequency and severity of catastrophic losses, capital management needs in the life...

We offer a novel explanation of underwriting volatility in property-liability insurance markets in terms of private uncertainty over public regulatory policy. Underwriting involving random losses to policyholders is one source of risk to the equity value of insurance firms. Solvency regulations,...

Human behavior, rational or irrational one, influences one of the most complex markets worldwide: the insurance market. In most situations, insurance markets are not competitive and risk neutral insurers negotiate under asymmetric information with actors who exhibit risk aversion. In this paper...

How does catastrophe-risk awareness affect selection patterns in catastrophe insurance markets? Catastrophe insurance is often provided by government entities and frequently involves substantial cross-subsidization between people facing very different levels of risk, which could generate adverse...

This paper discusses the development of drone insurance and its market. Specifically, we examine drone regulations and management of the risk arising from drone ownership and operations for commercial purposes, followed by our recommendation for coverages in insurance markets

Financial stability is the key objective that sustains and empowers investments and economic groth, or scatters the opportunities when lacking. As growth translates to profitability, and profitability is dependent upon solvalibility, the need for a deep knowledge of all potential risks surfaces....

The common view that buyer power of insurers may effectively counteract provider market power critically rests on the idea that consumers and insurers have a joint interest in extracting price concessions. However, in markets where the buyer is an insurer, the interests of insurers and consumers...

We study a competitive insurance market in which insurers have an imperfect informative advantage over policyholders. We show that the presence of insurers privately and heterogeneously informed about risk can explain the concentration levels, the persistent profitability and the pooling of risk...