Centro de Documentacion de Fundación MAPFRE - The efficiency of voluntary risk classification in insurance markets

MAP20210022654

The efficiency of voluntary risk classification in insurance markets / Keith J. Crocker, Nan Zhu

Sumario: It has been established that categorical discrimination based on observable characteristics such as gender, age, or ethnicity enhances efficiency. We consider a different form of risk classification when there exists a costless yet imperfectly informative test of risk type, with the test outcome unknown to the agents ex ante. We show that a voluntary risk classification in which agents are given the option to take the test always increases efficiency compared with no risk classification. Moreover, voluntary risk classification also Pareto dominates a regime of compulsory risk classification in which all agents are required to take the test

En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 01/06/2021 Volumen 88 Número 2 - junio 2021 , p. 325-350

1. Riesgo . 2. Pérdidas . 3. Eficiencia operacional . 4. Mercado de seguros . 5. Cálculo actuarial . I. Zhu, Nan . II. Title.