We study the optimal insurance design problem. This is a risk sharing problem between an insured and an insurer. The … for the insurance cover. This risk-adjusted premium calculation principle uses the cost-of-capital approach as it is … main novelty in this paper is that we study this optimization problem under a risk-adjusted premium calculation principle …

unambiguously reduce risk, and decision makers might demand more insurance when there is a positive loading on the premium than when …This article studies insurance demand in a two-period framework in which an individual faces risks in both current and … the insurance price is actuarially fair. We compare the demand for insurance in our framework with that in a two …

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of …-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively … documented in real insurance markets. …

How should intermediaries influence the insurance demand decision? The answer must refer to the interdependence of … essential for the insurance demand decision. Undoubtedly, consumers lack information about certain variables, and therefore … economic determinants and legal duties. Intermediaries potentially guide demand decisions by delivering objective information …