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Title:Insuring non-verifiable losses PDF Logo
Authors:Doherty, Neil A.
Laux, Christian
Muermann, Alexander
Issue Date:2011
Series/Report no.:CFS Working Paper 2011/31
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 but individual deductibles and insurance brokers can play a role implementing such contracts for the group of clients. Our model provides new insights and predictions about the determinants of insurance.
Subjects:Deductible Insurance
Upper Limit
Implicit Insurance Contracts
Insurance Brokers
Persistent Identifier of the first edition:urn:nbn:de:hebis:30:3-241157
Document Type:Working Paper
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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