Borch / Sandmo / Aase Economics of Insurance

1. Auflage 2014
ISBN: 978-1-4832-9490-2
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band Volume 29, 410 Seiten, Web PDF

Reihe: Advanced Textbooks in Economics

The theory of insurance is presented in this book, discussed from the viewpoint of the theory of economics of uncertainty. The principle of premium calculation which the book uses is based on economic equilibrium theory and differs from many of the premium systems discussed by actuaries.Reinsurance is developed in the framework of general economic equilibrium theory under uncertainty. Here ordering of risks, preferences and utility theory play an important role. The book discusses the markets for insurance and divides them into three classes: (i) life insurance (ii) business insurance and (iii) household insurance, and these classes are each treated extensively in three separate chapters. Finally uninsurable risks are presented under 'asymmetric information'. Here moral hazard and adverse selection are treated and illustrations are given, some based on game theory.

Autoren/Hrsg.

Borch, K. H.

Sandmo, A.

Aase, K. K.

Inhaltsverzeichnis

1;Front Cover;1
2;Economics of Insurance;4
3;Copyright Page;5
4;Table of Contents;10
5;Preface;8
6;Chapter 1. Insurance and Economics;16
6.1;1. Insurance and Economic Analysis;16
6.2;2. Insurance in the National Economy;21
6.3;3. Different Markets for Insurance;26
6.4;4. The Place of Uncertainty in the Theories of the Austrian School;31
7;Chapter 2. Insurance and Utility Theory;44
7.1;1. The Ordering of Insurance Risks;44
7.2;2. The Development of Reinsurance;50
7.3;3. The Reinsurance Market;54
7.4;4. Some Elements of a Theory of Reinsurance;62
7.5;5. The Safety Loading of Reinsurance Premiums;76
7.6;6. Equilibrium in a Reinsurance Market;96
7.7;7. The Theory of Risk;120
7.8;8. The Utility Concept Applied to the Theory of Insurance;149
7.9;9. Optimal Insurance Arrangements;159
7.10;10. Objectives and Optimal Decisions in Insurance;165
8;Chapter 3. Insurance and Competitive Equilibrium;178
8.1;1. Principles of Premium Calculation;178
8.2;2. Insurance Premiums in the Market;183
8.3;3. Insurance Premiums and Asset Prices;189
8.4;4. Insurance and the Theory of Financial Markets;196
8.5;5. Additive Insurance Premiums: A Note;207
8.6;6. Static Equilibrium under Uncertainty and Incomplete Markets;213
8.7;7. A Theory of Insurance Premiums;224
9;Chapter 4. Life Insurance;246
9.1;1. Early Development of Life Insurance;246
9.2;2. Elements of Actuarial Mathematics;248
9.3;3. Life Insurance, Consumption and Saving;255
9.4;4. Optimal Life Insurance;259
9.5;5. Life Insurance and Consumption;276
10;Chapter 5. Business Insurance;280
10.1;1. Insurance bought by Business Enterprises;280
10.2;2. Risk Sharing in Business;283
10.3;3. Captive Insurance Companies;288
10.4;4. Application of Game Theory to some Problems in Automobile Insurance;291
11;Chapter 6. Household Insurance;308
11.1;1. Administrative Expenses;308
11.2;2. No-Claim Bonus and Merit Rating;314
11.3;3. The Market for Household Insurance;319
11.4;4. The Optimal Insurance Contract in a Competitive Market;325
12;Chapter 7. Uninsurable Risks;330
12.1;1. Conditions that a Risk is Insurable;330
12.2;2. Adverse Selection;334
12.3;3. Moral Hazard;340
12.4;4. The Monster in Loch Ness;346
12.5;5. Ethics, Institutions and Optimality;350
12.6;6. The Price of Moral Hazard;361
12.7;7. Insuring and Auditing the Auditor;365
13;Chapter 8. Risk Theory and Government Supervision;378
13.1;1. Is Regulation of Insurance Companies Necessary?;378
13.2;2. Risk theory and Serendipity;390
14;Author Index;410
15;Subject Index;412