We leverage telematics data on driving behavior variables to assess driver risk and predict future insurance claims in a case study utilising a representative telematics sample. In the study, we aim to categorise drivers according to their driving habits and establish premiums that accurately...

This paper uses nighttime light (NTL) data to measure the nexus of the non-banking sector, particularly insurance, and economic growth in South Africa. We hypothesize that insurance sector growth positively propels economic growth due to its economic growth-supportive traits like investment...

Universal health coverage is a widely shared goal across lower-income countries. We conducted a large-scale, 4-year trial that randomized premiums and subsidies for India's first national, public hospital insurance program, RSBY. We find roughly 60% uptake even when consumers were charged...

Population events such as natural disasters, pandemics, extreme weather, and wars might cause jumps that have an immediate impact on mortality rates. The recent COVID-19 pandemic has demonstrated that these events should not be treated as nonrepetitive exogenous interventions. Therefore,...

Universal health coverage is a widely shared goal across lower-income countries. We conducted a large-scale, 4-year trial that randomized premiums and subsidies for India's first national, public hospital insurance program, RSBY. We find roughly 60% uptake even when consumers were charged...

Universal health coverage is a widely shared goal across lower-income countries. We conducted a large-scale, 4-year trial that randomized premiums and subsidies for India's first national, public hospital insurance program, RSBY. We find roughly 60% uptake even when consumers were charged...

The frequency and economic damage of natural disasters have increased globally over the last two decades due to climate change. This increase has an impact on the disaster insurance field, particularly in the calculation of premiums. Many regions have a shortcoming in employing insurance because...

Universal health coverage is a widely shared goal across lower-income countries. We conducted a large-scale, 4-year trial that randomized premiums and subsidies for India's first national, public hospital insurance program, called RSBY. We find substantial demand (~ 60% uptake) even when...

There is growing interest in market design using default rules and other choice architecture principles to steer consumers toward desirable outcomes. Using data from Massachusetts’ health insurance exchange, we study an "automatic retention" policy intended to prevent coverage interruptions...

Premium subsidies are an instrument to address low demand for natural hazard insurance, which is partly caused by governmental disaster relief payments. This study analyzes how the introduction of ex ante premium subsidies affects the frost insurance demand of German wine growers after the...

This paper used Reiterative Truncated Projected Least Squares (RTPLS) to estimate the effects on life expectancy of an additional dollar of insurance premiums for 43 countries. The data shows a clear positive relationship between insurance and life expectancy with insurance premiums increasing...

A risk averse insurance company which knows the quota of coverage demanded by a client at the status-quo premium but has imperfect information otherwise may choose not to change the premium although an else identical risk neutral company would do so, provided the variance of the company’s...

Climate-related physical risks pose serious concerns for both public and private finances, and it is of utmost importance to contain economic losses when natural catastrophes occur. In this context, the paper models the potential economic impact of currently uninsured floods in the EU. It also...

The researchers aim to examine the firm-specific variables that impact the financial performance of general insurance firms in India. The study's scope is limited to India's insurance industries from 2010-2011 to 2019-2020. The research considers 21 insurance firms in India out of 35 general...

This paper estimates pure–exporter premium, which captures the differences between pure exporters and general exporters in various firm characteristics. The data are Thailand’s firm-level data from three rounds of the industrial census in 2007, 2012, and 2017. The analysis finds positive...

This paper introduces and examines an intriguing puzzle arising from the market’s persistent tendency to overestimate the trajectory of spot interest rates resulting in lucrative cumulative long-term returns for net zero investments. We introduce a new metric called the “Hairy” premium to...

In this short note we discuss duration effects on the consistency of mean parameter and dispersion parameter estimators in exponential dispersion families (EDFs). Particular focus is on the situation corresponding to the standard generalised linear model assumptions where both the mean and...

Indirect discrimination and fairness are major concerns in algorithmic models. This is particularly true in insurance, where protected policyholder attributes are not allowed to be used for insurance pricing. Simply disregarding protected policyholder attributes is not an appropriate solution,...

We develop a theory that connects insurance premiums, insurance companies’ investment behavior, and equilibrium asset prices. Consistent with the model's key predictions, we show empirically that (1) insurers with more stable insurance funding take more investment risk and, therefore, earn...

Tarifdifferenzierung in der privaten Krankenversicherung anhand von gesundheitsbezogenen Verhaltensdaten des Versicherungsnehmers, wie sie sich im Zeitpunkt des Vertragsschlusses darstellen - wie etwa der Impfstatus gegen Covid-19 -, ist grundsätzlich zulässig. Anderes gilt für eine...

This paper investigates an optimal reinsurance policy using a risk model with dependent claim and insurance premium by assuming that the insurance premium is random. Their dependence structure is modeled using Sarmanov’s bivariate exponential distribution and the Farlie–Gumbel–Morgenstern...

Correlation in cyber risk represents an additional source of concern for utility and industrial infrastructures, where risks may be introduced by connected systems. A major means of reducing risk is to transfer it through insurance. In this paper, we consider a company which has peripheral...

This paper investigates the optimal private health insurance contract design problem considering the joint interests of a policyholder and an insurer. They jointly determine the premium of a private health insurance. To better reflect the reality, the illness expenditure is governed by an...

In 2013, the Competition and Fair Trade Commission (CFTC) raided the offices of the Insurance Association of Malawi on allegations that the Association was being used by its members as a “forum for discussing premiums charged.” Upon investigations, the Commission concluded that the...

Under the Bayesian model for Esscher premium principle, a new method is proposed to derive the credibility estimator of the risk premium. Compared with some existing estimators, the new estimator is more useful and practical due to its desired statistical properties. Furthermore, the Bayesian...

While the fairness and accountability in machine learning tasks have attracted attention from practitioners, regulators, and academicians for many applications, their consequence in terms of stakeholders' welfare is under-explored, especially via empirical studies and in the context of insurance...