Managed Claims: Zur Notwendigkeit einer vertikalen Integration von Versicherungs- und Reparaturleistungen

The paper deals with the so called external moral hazard. This problem occurs, when-everinsurance companies bear the repair costs of the insured in the case of a damage. The insurancecoverage results in a decrease of the price elasticity of demand and therefore in higher prices for repairservices and goods, since markets for repair goods are usually imperfect and prices are thus abovemarginal costs. Empirical evidence is given that the price increase for repair services and goods due toexternal moral hazard is quite substantial. It is argued in this paper that the only way to tackle externalmoral hazard efficiently is a vertical integration of insurance on the one hand and the supply of repairgoods and services on the other hand: Insurance companies have either to provide repair goods andservices by themselves or make cooperation agreements with providers. [Martin Nell]<p>