A review of recent theoretical and empirical analyses of asymmetric information in road safety and automobile insurance

Georges Dionne (), Pierre-Carl Michaud and Jean Pinquet

Research in Transportation Economics, 2013, vol. 43, issue 1, 85-97

Abstract: Road safety policies and automobile insurance contracts often use incentive mechanisms based on traffic violations and accidents to promote safe driving. Can these mechanisms improve road safety efficiently? Do they reduce asymmetric information between drivers and insurers and regulators? In other words, is there residual asymmetric information in observed distributions of accidents and infractions? We answer these questions in this article by reviewing recent theoretical and empirical results that rest on various data and methodologies. We present recent tests related to the identification of residual asymmetric information in road safety management and in automobile insurance contracting. We also propose a theoretical analysis of the foundations of point-record driver's licenses observed around the world.

Keywords: Road safety; Point-record driver's license; Asymmetric information; Road safety management; Empirical test (search for similar items in EconPapers)
JEL-codes: C12 C14 C23 C33 D81 D82 G22 L90 R41 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: A Review of Recent Theoretical and Empirical Analyses of Asymmetric Information in Road Safety and Automobile Insurance (2012)
Working Paper: A review of recent theoretical and empirical analyses of asymmetric information in road safety and automobile insurance (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:retrec:v:43:y:2013:i:1:p:85-97

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DOI: 10.1016/j.retrec.2012.12.006

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