s: This paper attempts to understand the outcomes when each party of the insurance contracts simultaneously has superior information to the other. We decompose the risk of a policyholder into a general risk and a specific risk. We assume that policyholders have superior information about specific risks while insurers have superior information about general risks. When each risk can be either hi...

We study the existence of self-selection and moral hazard in the Chilean health insurance industry. Dependent workers must purchase health insurance either from one public or several private insurance providers. For them, we analyze the relationship between health care services utilization and the choice of either private or public insurance. In the case of independent workers, where there is n...

We provide an experimental analysis of competitive insurance markets with adverse selection. Our parameterized version of the lemons’ model (Akerlof 1970) in the insurance context predicts total crowding out of low-risks when insurers offer a single full insurance contract. The therapy proposed by Rothschild and Stiglitz (1976) to solve this major inefficiency consists of adding a partial insur...

insurance is one kind of uncertain contract. it is possiblethat insurance located as another form and title but it is noone of them and it is independent contract. extension ofloss in process of insurance is possible (like othercontract) because the rate of insurance may be more lessthan the installments and payment of insurance or it maybe less that whole of it. possibility of loss in insuranc...

BACKGROUND Existence or non-existence of adverse selection in insurance market is one of the important cases that have always been considered by insurers. Adverse selection is one of the consequences of asymmetric information. Theory of adverse selection states that high-risk individuals demand the insurance service more than low risk individuals do. METHODS The presence of adverse selection ...

Background and Aim:  The health financing system is the process of collecting, pooling and managing financial resources to purchase health services. Sustainable financing of the Iranian health system is crucial for achieving universal health coverage. The purpose of this study was to identify strategies for sustainable financing of the Iranian health system. Materials and Methods:  This study ...

Many experts encourage homeowners to improve their houses to better survive natural catastrophes and reduce overall societal costs. However, we find these encouragements are not necessarily financially sound for the homeowner at risk of hurricane wind damage. We find that subsidized insurance reduces the incentive for a risk-neutral homeowner to purchase structural mitigation, as mitigation doe...

This article is based on two recent reports by the American Council of Life Insurers (ACLI) that illuminate the reasons why individuals purchase private long-term care insurance in both the group and individual markets. This information suggests that a younger and more diverse group of individuals are becoming increasingly interested in private long-term care insurance and that workplace educat...

Employers have many financial, liability and human resource reasons for providing employees purchase substance abuse treatment programs. However, using medical insurance to facilitate the purchase of this service does not make sense. This column explains why insurance is not the best vehicle for providing treatment for chemical dependency and how the purchasing of such a service can be better m...