of insurance. Third, we help answer the puzzle why the most risk averse are least likely to take up agricultural …We employ a novel approach to investigate the reasons for a low demand for agricultural insurance. We confirm that … farmers systematically undervalue agricultural insurance. First, we find that private transfers, mainly from family members …

and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher … demand for car insurance. - the effects of increases in labor income risk after 1979 seem to be more than offset by a more …Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting … decision to insure will depend on whether the benefits the insuree derives from insurance after having compensated the damaged …

risk. This paper focuses on the transmission of sovereign risk to insurance companies as some of the largest institutional … investors in the sovereign bond market. We use a firm level panel dataset that covers large insurance companies, banks and non … effects from sovereign risk to domestic insurers. The impact on insurers is larger than for non-financial firms and slightly …

individuals. Then, a trade-off between second-order (risk aversion) and third-order (prudence) risk preferences drives insurance …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 …

such insurance lines, securitizationis rapidly emerging as an alternative form of risk transfer. The ultimatesuccess of …, which illustrate ourmethodology in several types of insurance markets subject to systemic risk. …High correlations between risks can increase required insurer capital and/orreduce the availability of insurance. For …

; insurance ; resilience ; risk ; risk preferences … often interpreted as insurance: by decreasing the probability of future drops in the provision of ecosystem services …, resilience insures risk-averse ecosystem users against potential welfare losses. Using a general and stringent definition of …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

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 …. More specifically, we find that standard risk aversion is small, loss aversion is nonexistent, and nonlinear probability …

People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many … homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts … to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …