A note on increased probability of loss and the demand for insurance

It is shown that the effect of increased probability of loss on the demand for insurance depends on whether both insured and insurer are aware of the change. When both insurer and insured share the same beliefs about the probability of loss (symmetric information), an increase in the loss probability may lead risk-averse agents to demand less insurance. The Geneva Papers on Risk and Insurance Theory (1995) 20, 213–216. doi:10.1007/BF01258398

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Year of publication:	1995
Authors:	Jang, You-Song ; Hadar, Josef
Published in:	The Geneva Risk and Insurance Review. - Palgrave Macmillan, ISSN 1554-964X. - Vol. 20.1995, 2, p. 213-216
Publisher:	Palgrave Macmillan

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Extent:	application/pdf text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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