Economics of Insurance

Economics of Insurance

1st Edition - December 14, 1989

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  • Authors: K.H. Borch, A. Sandmo, K.K. Aase
  • eBook ISBN: 9781483294902

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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.

Table of Contents

  • Insurance and Economics. Insurance and Utility Theory. Insurance and Competitive Equilibrium. Life Insurance. Business Insurance. Household Insurance. Uninsurable Risks. Risk Theory and Government Supervision. Indexes.

Product details

  • No. of pages: 410
  • Language: English
  • Copyright: © North Holland 1989
  • Published: December 14, 1989
  • Imprint: North Holland
  • eBook ISBN: 9781483294902

About the Authors

K.H. Borch

A. Sandmo

K.K. Aase

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