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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
Persistent link: https://www.econbiz.de/10014239416
This article examines the determinants of cyber insurance participation, the amount of coverage offered, and the performance of current cyber insurers. Our results support the competitive advantage hypothesis, are in line with the coordinated risk management hypothesis, but only partially...
Persistent link: https://www.econbiz.de/10012864337
Half of U.S. 50-year-olds will experience a nursing home stay before they die, and one in ten will incur out-of-pocket long-term care expenses in excess of $200,000. Surprisingly, only about 10% of individuals over age 62 have private long-term care insurance (LTCI). This paper proposes a...
Persistent link: https://www.econbiz.de/10012854481
Cummins, Doherty, and Lo (2002) present a theoretical and empirical analysis of the capacity of the property liability insurance industry in the U.S. to finance catastrophic losses. In their theoretical analysis, they show that a sufficient condition for capacity maximization is for all insurers...
Persistent link: https://www.econbiz.de/10013405928
While the traditional role of insurers is to provide protection against idiosyncratic risks of individuals, insurers themselves face substantial uncertainties due to aggregate shocks. To prevent insurers from passing through aggregate risks to consumers, governments have increasingly adopted...
Persistent link: https://www.econbiz.de/10014226149
This research examines the effects of rate regulations and compulsory insurance laws on insurance purchases. Three stage least squares (3sls) regressions have been employed to control for the endogeneity of the main variables, which are premiums, regulations, and insurance purchases. The...
Persistent link: https://www.econbiz.de/10014350934
Persistent link: https://www.econbiz.de/10011973551
This contribution starts out by noting a conflict of interest between consumers and insurers. Consumers face positive 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...
Persistent link: https://www.econbiz.de/10010315580
Present value calculations require predictions of cash flows both at near and distant future points in time. Such predictions are generally surrounded by considerable uncertainty and may critically depend on assumptions about parameter values as well as the form and stability of the data...
Persistent link: https://www.econbiz.de/10010276173
We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice that incorporates standard risk aversion (concave utility over final wealth), loss aversion, and nonlinear probability weighting. Our estimates indicate that nonlinear...
Persistent link: https://www.econbiz.de/10010292086