that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … costlessly observable, then it should be included in the contract to improve the risk sharing-incentive trade-off under moral … resulting incompleteness of the contract opens the door to controversies and disputes that may lead to judicial procedures. We …

High correlations between risks can increase required insurer capital and/orreduce the availability of insurance. For … such insurance lines, securitizationis rapidly emerging as an alternative form of risk transfer. The ultimatesuccess of … to facilitateand/or be facilitated by insurance contracts. We consider how insuredlosses might be decomposed into …

insurance when the contracting parties have limited commitment. They define, characterize, and compute Markov-perfect risk …-sharing contracts with bargaining. These contracts significantly improve consumption smoothing and welfare relative to self-insurance … through savings. Incorporating savings decisions into the contract (asset contractibility) implies sizable gains for both the …