Showing 1 - 10 of 4,175
We analyze how pandemic business interruption coverage can be put in place by building on capitalization mechanisms. The pandemic risk cannot be mutualized since it affects simultaneously a large number of businesses, and furthermore, it has a systemic nature because it goes along with a severe...
Persistent link: https://www.econbiz.de/10012387545
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. …
Persistent link: https://www.econbiz.de/10011497884
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 …
Persistent link: https://www.econbiz.de/10011864322
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 …
Persistent link: https://www.econbiz.de/10010237759
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 …
Persistent link: https://www.econbiz.de/10010479958
We study the impact of insurance on the amount of fraud in a physician-patient relationship. In a market for credence …
Persistent link: https://www.econbiz.de/10011409200
formal insurance in a setting where donors make redistributive transfers to anonymously paired recipients. We find that … donors reduce their transfers to recipients who don't take-up insurance, and that this effect is larger for donors who hold … the ex ante belief that the recipient is more likely to take-up insurance. The findings are consistent with a model of a …
Persistent link: https://www.econbiz.de/10011996393
People often fail to insure against catastrophes, even when insurance is subsidized. Even when insuring homes, many … homeowners still underinsure the full value of their assets. Some researchers have suggested using long-term insurance contracts … to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …
Persistent link: https://www.econbiz.de/10012694052
Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …
Persistent link: https://www.econbiz.de/10013093046
that hardly explains the many features of an insurance contract. We extend this setup to include the situation that the … show how the law of insurance contracts should allow insurers to incentivize policyholders to exert an adequate level of …
Persistent link: https://www.econbiz.de/10011723471