I develop and estimate a dynamic stochastic optimization model to assess the impact of weather insurance on the … consumption, investment, and welfare of farmers in developing countries. Weather insurance has the potential to provide large … liquidity constraints, basis risk, and loading factor on the insurance premium may account for the low take-up that is often …

Insurance regulation is typically aimed at policyholder protection. In particular, regulators attempt to ensure the … financial "safety" of insurance firms, for example, by means of capital regulation, and to enhance the "affordability" of … insurance, for example, by means of price ceilings. However, these goals are in conflict. Therefore, we identify situations in …

This paper compares the shareholder-value-maximizing capital structure and pricing policy of insurance groups against … instruments. We show that using these instruments enables the group to offer insurance with less default risk and at lower … group building being beneficial for shareholders but detrimental for policyholders. -- Insurance groups ; insurer default …

We study an insurance model characterized by a continuum of risk types, private information and a competitive supply …