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 …

This paper adds to the ongoing debate about low farmers' uptake of risk management (RM) tools subsidised by the Common … intermediaries and the perceived barriers to adopting may influence farmers' intention to adopt the insurance and to participate in … intention to adopt (e.g. risk attitude). Data were gleaned from direct interviews among 105 Italian farmers and analysed through …

In decision theory projects are usually evaluated in terms of their riskiness, and often decision under risk is … intended as the one-shot-type binary choice of accepting or not accepting the risk. This paper elaborates on the concept of … risk acceptance, and aims at developing a theoretical framework based on networks theory. In doing this, the …

Exclusions are part of any property insurance. A prototypically simple contract covers losses from a single peril but … excludes losses from all other perils and, typically, from the insured peril in some instances. Demand for insurance is … impacted by exlcuded risks. There are two tendencies here: Exclusions might increase demand by heightening risk aversion, or …

insurance companies to the risk of bankruptcy, when liquidity shocks and low investment payoffs jointly appear. Therefore …Insurance companies invest their wealth in financial markets. The wealth evolution strongly depends on the success of …, regulatory authorities impose solvency restrictions to ensure that insurance companies are able to face their obligations with …

on deductible choice in Dutch universal health insurance, we find that risk preferences are a dominant factor in decision …This paper provides new field evidence on risk preferences over small stakes. Using unique population and survey data … aking. In fact, our results indicate that risk preferences are both statistically and quantitatively more significant in …

lines of insurance coverage and a model that nests expected utility theory plus a range of non-expected utility models, we … and other structural assumptions to tighten the bounds, and we explore what we can learn about households’ risk …

This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting … with risk management and capital allocation; (ii) some, but not all, of the risks they face can be frictionlessly hedged in … of risk and capital structure of the firm. This approach allows us to integrate these features into: (i) the pricing of …

Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …