We review the optimality of partial insurance contracts in the presence of moral hazard when consumers are affected by probability weighting. In valuing risky prospects individuals commonly overweight extreme outcomes at the expense of intermediate outcomes; these deviations systematically bias the ex-ante value of insurance. We characterize optimal contracts for the case of perfectly competiti...

In this paper, we focus on the calibration of affine stochastic mortality models using insurance contracts premiums. Viewing insurance contracts as “market products,” we propose fitting stochastic models on the quotes of insurance policies. For this purpose, insurance contracts are viewed as a “swap” in which policyholders exchange cash flows (premiums vs. benefits) with an insurer analogous to...

In this paper we consider an insurer who has incomplete information about the claim frequency of the risk process. He therefore calculates the premium on the basis of a prior distribution for the claim frequency. Future information might then reveal that it is no longer optimal for the insurer to continue to offer the insurance under the current conditions. We consider a model where, at certain...

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Competition between insurance companies for employees of a firm often increases the prices and reduces the availability of high-quality health plans offered to employees. An insurance company can reduce competition by signing an exclusive contract, which guarantees that the company is the only insurance provider. The study assesses whether exclusive contracts can alleviate the negative conseque...

High correlations between risks can increase required insurer capital and/or reduce the availability of insurance. For such insurance lines, securitization is rapidly emerging as an alternative form of risk transfer. The ultimate success of securitization in replacing or complementing traditional insurance and reinsurance products depends on the ability of securitization to facilitate and/or be...

  Background: The rule "anyone who has the power over things" is one of the legal rules that the jurists of Islam have been referring to for more than a thousand years and it is very useful in trials and even administrative authorities. It is also one of the most important and practical rules in civil and jurisprudential law because it is closely related to confession, which is one of the main...

<p><em>Perbuatan churning adalah perbuatan yang merugikan tertanggung dari segi penerimaan manfaat dan tersebut dilarang oleh Asosiasi Asuransi Jiwa Indonesia maupun perusahaan asuransi seperti PT.Prudential Life Assurance. Penelitian ini bertujuan untuk mengetahui akibat hukum jika agen melakukan melawan (churning) bentuk tanggung jawab terhadap di dalam asuransi. Adapun metode dig...

Impediments to worker mobility serve to mitigate the attrition of healthy individuals from employer-sponsored insurance pools, thereby creating a de facto commitment mechanism that allows for more complete insurance of health risks than would be possible in the absence of such frictions. Using data on health insurance contracts obtained from the 1987 National Medical Expenditure Survey, we find...