On the Emergence of Private Insurance in Presence of Mutual Agreements

Renaud Bourlès ()

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to analyze the impact of the existence of mutual firms on the behavior of an insurance company and more precisely to study in which situations a private insurance firm may replace mutual agreements. Our approach differs from the existing literature as we integrate the investment choices of the company and the fact that, because it commits on a fixed contract, it can become insolvent. In such a situation we are able to characterize the unique optimal choices of an entrant company and the conditions favoring or preventing its appearance.

Keywords: Insurance market; Mutual firms; Insolvency; Demutualization (search for similar items in EconPapers)
JEL-codes: G22 D8 L1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-ias
Date: 2009-05-11
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http://mpra.ub.uni-muenchen.de/5821/ orginal version
http://mpra.ub.uni-muenchen.de/5827/ revised version
http://mpra.ub.uni-muenchen.de/15374/ revised version

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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:5821

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