Asymmetric information is an important phenomenon in many markets and in particular in insurance markets. Testing for asymmetric information has become a very important issue in the literature in the last two decades. Almost all testing procedures that are used in empirical studies are parametric, which may yield misleading conclusions in the case of misspecification of either functional or dis...

We provide novel insights into the effects of private information in automobile insurance. Our analysis is based on telematic data of insured cars which includes detailed information about driving behavior that is unobservable to the insurance company. We find that private information about driving behavior has significant and counteracting effects on the choice of third-party liability and fir...

OBJECTIVES This study was conducted to estimate the socioeconomic cost of injuries in South Korea. METHODS We matched claims data from national health insurance, automobile insurance and industrial accident compensation insurance (IACI), and mortality data obtained from the national statistical office from 2001 to 2003 by patients' unique identifier. Socioeconomic cost included both direct co...