How should intermediaries influence the insurance demand decision? The answer must refer to the interdependence of economic determinants and legal duties. Intermediaries potentially guide demand decisions by delivering objective information and by considering individuals' situation and economic...

The essential promise of an insurance policy is that when a claim is filed, the company will pay what it owes, promptly and fairly. Increasingly that promise is being violated. Insurance companies often delay payment of valid claims, deny payment in part or altogether, and force claimants to...

In the past few years the insurance community has paid increasing attention to the concept of “protection gaps”—the extent to which significant losses are not covered by insurance. Homeowners insurance is a key area in which these discussions have occurred, particularly as natural...

There are some microinsurance schemes in Western Asia but not many. The question is why? The existence of microinsurance in Western Asia shows that it is principally feasible in this part of the world. And the large range of different products offered by the existing scheme shows that the...

Anti-selection occurs when information asymmetry exists between an insurer and an applicant. When an applicant knows that they are at high risk of loss, but the insurer does not, the applicant may try to exploit this knowledge differential to secure insurance at a lower premium that does not...

Homeowners insurance provides financial security for 70 million American households and stability to the communities in which they live — but only when it works. Homeowners insurance only works because it is supported and regulated by state law. This article describes the Essential Protections...

We study an insurance model characterized by a continuum of risk types, private information and a competitive supply side. We investigate the contestability clause in the policy: when a claim is filed, the insurer may dispute it on grounds of the information provided by the insuree. Smoking in...

The delicate art of managing foreign affairs is one of the oldest in human history. This long- established practice has recently experienced a renaissance with the introduction of “cyber diplomacy” as an exciting new frontier for traditional diplomatic work. Under this novel banner a pincer...

Article 42 of the Solvency-II-Directive requires all persons who effectively run the insurance company or have other key functions to be fit and proper. The Solvency II-Directive extends the supervision with regard to the persons concerned and also with regard to the qualifications required. The...