Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57366
Authors: 
Doherty, Neil A.
Laux, Christian
Muermann, Alexander
Year of Publication: 
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
JEL: 
D6
G22
L14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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