Combining participating insurance and financial policies
| Autor: | Robert Kast, Geoffroy Enjolras |
|---|---|
| Rok vydání: | 2012 |
| Předmět: |
Finance
Crop insurance Actuarial science business.industry 05 social sciences Economics Econometrics and Finance (miscellaneous) Business interruption insurance General insurance Agricultural and Biological Sciences (miscellaneous) Key person insurance Insurance policy 0502 economics and business Auto insurance risk selection Economics Casualty insurance 050202 agricultural economics & policy Risk pool 050207 economics business |
| Zdroj: | Agricultural Finance Review. 72:156-178 |
| ISSN: | 0002-1466 |
| DOI: | 10.1108/00021461211222231 |
| Popis: | Purpose – The purpose of this paper is to examine a new insurance policy against natural disasters.Design/methodology/approach – The authors propose an optimisation model, which involves both the insurer and the farmer. The farmer decides to insure his farm if and only if insurance improves the utility he is expecting over a given year. Therefore, the paper takes the perspective of an insurer who wants to maximise the farmer's wealth, so that he will be more likely to subscribe the policy. The choice and combination of the policies are then determined and designed by the insurer to reach that aim.Findings – The paper proves that the market for insurance could grow with a combination of participating contracts and market‐based instruments. The first cover individual risks while the second cover systematic risks.Practical implications – The new policy leads both the insurer to manage small and large risks and the insured to be financially interested. It also provides an optimal coverage against natural even... |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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