Recent events involving major insurance companies and insurance brokerage firms highlight substantial incentive problems in commercial and reinsurance markets where intermediation takes place. We show that in markets with informed as well as uninformed consumers and heterogeneous risk profiles...

Aktuelle Ereignisse in der deutschen und der US-amerikanischen Industrieversicherung deuten nachhaltige Anreizprobleme in der Beziehung zwischen Anbietern, Nachfragern und den beteiligten Versicherungsvermittlern an. In den USA wurde dem weltgrößten Versicherungsmakler Marsh & McLennan...

“Risk and insurance” provides an illustrative set of decisions made in the presence of uncertainty. As behavioral models become more integrated into economics and finance, many of their effects are illustrated quite well within insurance markets. Especially noteworthy are the complementary...

This paper empirically assesses the selection effects and determinants of the demand for supple-mental health insurance that covers hospital and dental benefits in Germany. Our representative dataset provides doctor-diagnosed indicators of the individual's health status, risk attitude, demand...

This paper analyzes the German market for supplemental dental insurance (SuppDI) to identify selection behavior based on individuals’ private information. The rather limited underwriting by German private health insurers makes this market especially prone to selection effects. Although the...