Centro de Documentacion de Fundación MAPFRE - Personal non-life insurance decisions and the welfare loss from flat deductibles

MAP20190019118

Personal non-life insurance decisions and the welfare loss from flat deductibles / Mogens Steffensen, Julie Thogersen

32 p.

Sumario: We view the retail non-life insurance decision from the perspective of the insured. We formalize different consumption insurance problems depending on the flexibility of the insurance contract. For exponential utility and power utility we find the optimal flexible insurance decision or insurance contract. For exponential utility we also find the optimal position in standard contracts that are less flexible and therefore, for certain nonlinear pricing rules, lead to a welfare loss for the individual insuree compared to the optimal flexible insurance decision. For the exponential loss distribution, we quantify a signifcant welfare loss. This calls for product development in the retail insurance business

En: Astin bulletin. - Belgium : ASTIN and AFIR Sections of the International Actuarial Association = ISSN 0515-0361. - 01/01/2019 Volumen 49 Número 1 - enero 2019 , p. 85-116

1. Matemática del seguro . 2. Seguros no vida . 3. Comercio al por menor . 4. Bienes de consumo . I. Thogersen, Julie .