| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP15234 |
| DP15234 Organizing insurance supply for new and undiversifiable risks | |
| David Alary; Catherine Bobtcheff; Carole Haritchabalet | |
| 发表日期 | 2020-08-31 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | This paper explores how insurance companies can coordinate to extend their joint capacity for the coverage of new and undiversifiable risks. The undiversifiable nature of such risks causes a shortage of insurance capacity and their limited knowledge makes learning and information sharing necessary. We develop a unified theoretical model to analyse co-insurance agreements. We show that organizing this insurance supply amounts to sharing a common value divisible good between capacity constrained and privately informed insurers with a reserve price. Coinsurance via the creation of an insurance pool turns out to operate as a uniform price auction with an ``exit/re-entry'' option. We compare it to a discriminatory auction for which no specific agreements are needed. Both auction formats lead to different coverage/premium tradeoffs. If at least one insurer provides an optimistic expertise about the risk, the pool offers higher coverage. This result is reversed when all insurers are pessimistic about the risk. Static comparative results with respect to the severity of the capacity constraints and the reserve price are provided. In the case of completely new risks, a regulator aiming at maximizing the expected coverage should promote the pool when the reserve price is low enough or when competition is high enough. |
| 主题 | Industrial Organization |
| 关键词 | Coinsurance Undiversifiable and new risks Common value divisible goods auctions Competition Reserve price |
| URL | https://cepr.org/publications/dp15234-1 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/544209 |
| 推荐引用方式 GB/T 7714 | David Alary,Catherine Bobtcheff,Carole Haritchabalet. DP15234 Organizing insurance supply for new and undiversifiable risks. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
