Human behavior, rational or irrational one, influences one of the most complex markets worldwide: the insurance market …. In most situations, insurance markets are not competitive and risk neutral insurers negotiate under asymmetric … information with actors who exhibit risk aversion. In this paper we develop a game theory model that analyzes the negotiation of …

This paper values equity-linked life insurance contracts with surrender guarantees for risk averse and loss averse … underlying equity fund, compared to an optimally stopped insurance contract, leading to substantial losses. Moreover, high …