Asymmetric information is an important phenomenon in insurance markets, but the empirical evidence on the extent of … crucial to test for asymmetric information in specific insurance markets. In this paper, we analyse a recent data set on … automobile insurance in Germany, the largest such market in Europe. We present and compare a variety of statistical testing …

In a two-stage model insurance companies first decide upon risk classification and then compete in prices. I show that … insurance market individual application of classification schemes induces welfare losses due to cream skimming. Classification …

and to outline new directions for research. In this paper we analyse accident insurance, which has not been analysed … information if unobserved risk anversion influences both the insurance demand and the risk type …