. Because death risk increases with age, the actuarial value of a life insurance policy increases over time and becomes positive …Life insurance contracts can be exceptionally long term and are typically written with a level premium structure … far enough into the policy. Life insurance is also unique in that the payout is valued through a bequest motive. If …

(UBI) contracts that incorporate behavioral risk factors in pricing. Economic theory predicts that any informative …Technological progress has improved insurers' ability to monitor policyholders and has led to usage-based insurance … market shares in the single digits. We modify the standard moral-hazard model in insurance economics by trading off a simpler …

Road safety policies and automobile insurance contracts often use incentive mechanisms based on traffic violations and … asymmetric information in road safety management and in automobile insurance contracting. We also propose a theoretical analysis …

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 …

This article deals with optimal insurance contracts in an imprecise probabilities framework. The informational …

This paper extends previous resuls on optimal insurance trading in the presence of a stock market that allows … with references to the role of genetic testing in insurance markets. We find a novel and surprising result under symmetric … information: agents may optimally prefer to purchase full insurance despite the presence of unfairly priced insurance contracts …

This paper proposes a historically-grounded mechanism-design model of corporate finance, with two-side risk aversion … capital structure shares optimally the non-diversifiable risk associated with costly and risky ventures. Furthermore, it … uniquely sustains the optimal risk allocation if agents' personal wealth is contractible at a higher enforcement cost than the …

This paper, instead of focusing on agency cost, analyzes the role of risk-sharing under problems of enforceability …

This study aims at characterizing the optimal regulation of risky activities when risk assessment is subjective as a … risk perceptions, which substantially affect the optimal intervention. To explore this issue, we construct a moral hazard … optimal fine level, which is in contrast to the effect of less risk-aversion. We then extend the analysis to the case where …