Insurance and Insurance Markets
Georges Dionne and
Scott Harrington ()
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Scott Harrington: University of Pennsylvania, Postal: Wharton School, 206 Colonial Penn Center, 3641 Locust Walk, Philadelphia, PA 19104, USA, http://www.scottharringtonphd.com/
No 17-2, Working Papers from HEC Montreal, Canada Research Chair in Risk Management
Kenneth Arrow and Karl Borch published several important articles in the early 1960s that can be viewed as the beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the insurance literature and then summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and adverse selection. It then turns to financial pricing models of insurance and to analyses of price volatility and underwriting cycles; insurance price regulation; insurance company capital adequacy and capital regulation; the development of insurance securitization and insurance-linked securities; and the efficiency, distribution, organizational form, and governance of insurance organizations.
Keywords: Insurance; insurance market; risk sharing; moral hazard; adverse selection; demand for insurance; financial pricing of insurance; price volatility; insurance regulation; capital regulation; securitization; insurance-linked security; organization form; governance of insurance firms. (search for similar items in EconPapers)
JEL-codes: D80 D81 D82 G22 G30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-hea, nep-his, nep-hpe, nep-ias, nep-rmg and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ris:crcrmw:2017_002
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