Doherty, Neil, Laux, Christian, Mürmann, Alexander. 2015. Insuring Nonverifiable Losses. Review of Finance 19 (1): S. 283-316.
BibTeX
Abstract
Insurance contracts are often complex and difficult to verify outside the insurance relation. We show that standard one-period insurance policies with an upper limit and a deductible are the optimal incentive-compatible contracts in a competitive market with repeated interaction. Optimal group insurance policies involve a joint upper limit and individual deductibles; insurance brokers can play a role implementing such contracts for their clients. Our model provides new insights and predictions about the determinants of insurance.
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| Status of publication | Published |
|---|---|
| Affiliation | WU |
| Type of publication | Journal article |
| Journal | Review of Finance |
| Citation Index | SSCI |
| WU Journalrating 2009 | A |
| WU-Journal-Rating new | FIN-A, STRAT-A, VW-A, WH-A |
| Language | English |
| Title | Insuring Nonverifiable Losses |
| Volume | 19 |
| Number | 1 |
| Year | 2015 |
| Page from | 283 |
| Page to | 316 |
| URL | http://rof.oxfordjournals.org/content/19/1/283.abstract |
| DOI | http://dx.doi.org/10.1093/rof/rft056 |
Associations
- Projects
- PhD Programm: Vienna Graduate School of Finance
- People
- Laux, Christian (Details)
- Mürmann, Alexander (Details)
- External
- Doherty, Neil
- Organization
- Institute for Finance, Banking and Insurance IN (Details)