We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In … this setting, we characterize the equilibria under hidden information about the type of customers and hidden action. We … positive correlation between the amount of insurance coverage and risk type, as in the standard economic models of adverse …

risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information … about the probability of the event (reversed asymmetric information). We find that indemnity insurance tends to be welfare …Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …

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 begins with the role of utility, risk, and risk aversion in the … insurance literature and then summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

This paper studies insurance demand for individuals with limited financial literacy. We propose uncertainty about … insurance payouts, resulting from contract complexity, as a novel channel that affects decision-making of financially illiterate … individuals. Then, a trade-off between second-order (risk aversion) and third-order (prudence) risk preferences drives insurance …

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 begins with the role of utility, risk, and risk aversion in the … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information … about the probability of the event (reversed asymmetric information). We find that indemnity insurance tends to be welfare …Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …

Recent events involving major insurance companies and insurance brokerage firms highlight substantial incentive … without intermediation. A controversial matter in the discussion concerning insurance intermediation is the issue of … by insurance companies. The rationale for the latter is the fact that a fee paid by uninformed consumers limits the …

markets with small initial loss sizes, insurers may try to raise these in order to create demand for insurance. After having … defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … power have incentives to create insurance markets. Insurer competition will push their profits to zero but markets do not …