Revealed-preference measures of willingness to pay (WTP) capture the value of insurance only against the risk that … remains when choosing insurance. This paper provides a method to translate observed market WTP and cost curves into an ex …-ante value of insurance that can analyze the impact of insurance market policies on ex-ante expected utility. The key additional …

Insurance choices are often hard to rationalize by standard theory and frequently appear sub-optimal. A key reason may … experiments mirroring typical health insurance decisions, we find that when people choose plans using standard feature … decision aid, though, significantly more people have choice patterns that are better explained by expected utility theory. We …

Demand for insurance can be driven by high risk aversion or high risk. We show how to separately identify risk … preferences and risk types using only choices from menus of insurance plans. Our revealed preference approach does not rely on … in insurance plans, offered separately to random cross-sections or offered as part of the same menu to one cross …

some or all of the financial risk associated with the insurance. This paper generalizes the theory of insurance to analyze … the market. The" theory makes cross-sectional predictions on which firms will choose to produce insurance, as well as how … prices and loss experience will vary with the production decision; the theory also predicts which lines of insurance are …

Home equity insurance policies, policies insuring homeowners against declines in the price of their homes, would bear … some resemblance both to ordinary insurance and to financial hedging vehicles. A menu of choices for the design of such … insurance company in effect serves as a retailer to homeowners of short positions in real estate futures markets or of put …

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve … insurance choices over different loss probabilities and prices. The insurance choices show coherence and some correlation with …

We assemble and analyze a new data set of homeowner insurance claims from 28 independently operated country … subsidiaries of a multinational insurance company. A fundamental feature of the data is that such claims are often disputed, and … lead to rejections or lower payments. We propose a new model of insurance, in which consumers can make invalid claims and …

Adverse selection is a classic market failure known to limit or "unravel"' trade in high-quality insurance and many … other economic settings. While the standard theory emphasizes quality distortions, we argue that selection has another big … competition, estimated using administrative data from Massachusetts' health insurance exchange. We find a large "selection wedge …

We describe the risks faced by the ageing population and survey the corresponding insurance markets for these risks. We … interactions between social insurance and private insurance markets …