The paper deals with the so called external moral hazard. This problem occurs, when-ever insurance companies bear the repair costs of the insured in the case of a damage. The insurance coverage results in a decrease of the price elasticity of demand and therefore in higher prices for repair...

Die Hochwasserkatastrophe im August dieses Jahres hat deutlich gezeigt, welches Schadenspotential Naturkatastrophen auch in Europa haben. Sollten solche Schäden in Deutschland weiterhin durch staatliche Ad-hoc-Hilfen und private Spenden behoben werden? Oder sollte eine Zwangsversicherung gegen...

This paper locks at markets charaterized by the fact that the demand side is insured. In these markets a consumer purchases a good to compensate consequences of unfavorable events, such as an accident or an illness. Insurance policies in most lines of insurance base indemnity on the insured's...

The present paper analyzes the demand for insurance when the insurer has incomplete information about types of potential customers. We assume that customers' risk preferences cannot be distinguished by the insurer. Therefore, the standard result in insurance economics that the insurer...

Dramatic events in the recent past have drawn attention to catastrophe risk management problems. The devastating terrorist attacks of September 11th, 2001 incurred the highest insured losses to date. Furthermore, a trend of increasing losses from natural catastrophes appears to be observable...