Guaranteed renewability is a prominent feature in many health and life insurance markets. It is well established in the … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …

We study the demand for actuarially fair Long Term Care (LTC hereafter) insurance in a setting where autonomous agents … themselves, while no agent wishes to buy complete insurance. We then show that the comparison of marginal utility of income (as … opposed to consumption) across health states depends on (i) whether agents do buy LTC insurance at equilibrium or not, (ii …

competitive life insurance market offering actuarially fair annuities. There exists a tragedy of annuitization: although full …

nature. Competitive equilibrium cannot provide such transfers if insurance firms are unable to precommit their customers. On … the other hand, public insurance plans that do not distinguish between "risk-class" realizations are also inefficient. It …

This informal paper explores models of competitive insurance market equilibrium when individuals of initially similar …

This paper introduces a new rationale for the existence of "Directors' and Officers'" (D&O) insurance. We use a model …-term increases in stock prices that do not maximize long run stock market value. We show that D&O insurance provides a convenient … in capital markets. The empirical results support the idea that both the insurance coverage and the premium are higher in …

Global financial regulators are currently reflecting on the nature of the insurance business. Specifically, they are … trying to classify insurance into "traditional" and "non-traditional" activities, and to distinguish them from "non-insurance … international finance is "what is insurance and where does insurance end?" This paper aims to elaborate on the economics of …

This paper estimates a reduced-form model to assess the credit risk of General Insurance (GI) non-life firms in the UK … insurance firms. The implications of these findings for regulators of GI firms under the coming Solvency II are discussed. …