“El sector asegurador tiene una importancia creciente para la economía. En la medida que un país avanza en su proceso de desarrollo, los mayores niveles de inversión y el dinamismo de la activada económica involucran cada vez mayores riesgos. El tamaño del sector asegurador colombiano...

Household demand for actuarially unfair insurance against small risks has long puzzled economists. One way to potentially rationalize this demand is to recognize that (non-life) insurance is an incentive-compatible means of engaging an expert buyer. To quantify the benefits of expert buying, we...

Financial barrier is still a dominant problem for access to necessary healthcare for majority of the Indians. To ensure universal and comprehensive healthcare to its citizens, alternative healthcare financing strategies like health insurance are being widely accepted. However, despite health...

Many countries have introduced competition in health insurance markets. Managed competition settings have been implemented in order to avoid risk selection problems. In Germany, the Netherlands, Switzerland and Israel citizens can choose between different providers for basic coverage. In this...

In this paper we investigate the possible presence of switching costs when consumers are offered the opportunity to change their basic health insurance provider. We focus on the specific case of Switzerland which implemented a pure form of competition in basic health insurance markets. We...

The creation of modern insurance industry will allow the state: to reduce the burden on the state budget as concerns the compensation of unexpected losses, caused by factors of different nature; to solve some problems of Social Security in the conditions of the market economy; and to attract the...

We use employee-level panel data from a single firm to explore the possibility that individuals may select insurance coverage in part based on their anticipated behavioral ("moral hazard") response to insurance, a phenomenon we label "selection on moral hazard." Using a model of plan choice and...

Microfinance institutions have started to bundle their basic loans with other financial services, such as health insurance. Using a randomized control trial in Karnataka, India, we evaluate the impact on loan renewal from mandating the purchase of actuarially-fair health insurance covering...

Microeconomic theory predicts that if patients are fully insured and providers are paid fee-for-service, utilization of medical services exceeds the efficient level (‘moral hazard effect’). In Switzerland, both demand-side and supply-side cost sharing have been introduced to mitigate this...

We analyze the value of insurance when individuals have access to credit markets. Loans allow consumers to smooth financial shocks over time, decreasing the value of consumption smoothing from insurance. We derive formulas for the value of insurance that can be taken to data, and show how that...