Economics of Insurance

Description

Front Cover; Economics of Insurance; Copyright Page; Table of Contents; Preface; Chapter 1. Insurance and Economics; 1. Insurance and Economic Analysis; 2. Insurance in the National Economy; 3. Different Markets for Insurance; 4. The Place of Uncertainty in the Theories of the Austrian School; Chapter 2. Insurance and Utility Theory; 1. The Ordering of Insurance Risks; 2. The Development of Reinsurance; 3. The Reinsurance Market; 4. Some Elements of a Theory of Reinsurance; 5. The Safety Loading of Reinsurance Premiums; 6. Equilibrium in a Reinsurance Market; 7. The Theory of Risk.;The theory of insurance is presented in this book, discussed from the viewpoint of the theory of economics of uncertainty. The principle of premium calculation which the book uses is based on economic equilibrium theory and differs from many of the premium systems discussed by actuaries. Reinsurance is developed in the framework of general economic equilibrium theory under uncertainty. Here ordering of risks, preferences and utility theory play an important role. The book discusses the markets for insurance and divides them into three classes: (i) life insurance (ii) business insurance. Front Cover Economics of Insurance Copyright Page Table of Contents Preface Chapter 1. Insurance and Economics 1. Insurance and Economic Analysis 2. Insurance in the National Economy 3. Different Markets for Insurance 4. The Place of Uncertainty in the Theories of the Austrian School Chapter 2. Insurance and Utility Theory 1. The Ordering of Insurance Risks 2. The Development of Reinsurance 3. The Reinsurance Market 4. Some Elements of a Theory of Reinsurance 5. The Safety Loading of Reinsurance Premiums 6. Equilibrium in a Reinsurance Market 7. The Theory of Risk. 8. The Utility Concept Applied to the Theory of Insurance9. Optimal Insurance Arrangements 10. Objectives and Optimal Decisions in Insurance Chapter 3. Insurance and Competitive Equilibrium 1. Principles of Premium Calculation 2. Insurance Premiums in the Market 3. Insurance Premiums and Asset Prices 4. Insurance and the Theory of Financial Markets 5. Additive Insurance Premiums: A Note 6. Static Equilibrium under Uncertainty and Incomplete Markets 7. A Theory of Insurance Premiums Chapter 4. Life Insurance 1. Early Development of Life Insurance. 2. Elements of Actuarial Mathematics3. Life Insurance, Consumption and Saving 4. Optimal Life Insurance 5. Life Insurance and Consumption Chapter 5. Business Insurance 1. Insurance bought by Business Enterprises 2. Risk Sharing in Business 3. Captive Insurance Companies 4. Application of Game Theory to some Problems in Automobile Insurance Chapter 6. Household Insurance 1. Administrative Expenses 2. No-Claim Bonus and Merit Rating 3. The Market for Household Insurance 4. The Optimal Insurance Contract in a Competitive Market Chapter 7. Uninsurable Risks. 1. Conditions that a Risk is Insurable2. Adverse Selection 3. Moral Hazard 4. The Monster in Loch Ness 5. Ethics, Institutions and Optimality 6. The Price of Moral Hazard 7. Insuring and Auditing the Auditor Chapter 8. Risk Theory and Government Supervision 1. Is Regulation of Insurance Companies Necessary? 2. Risk theory and Serendipity Author Index Subject Index.