Empirical tests for ex post moral hazard in a market for automobile insurance

Autor:	David Rowell, Son Nghiem, Luke B. Connelly
Rok vydání:	2021
Předmět:	Statistics and Probability Economics and Econometrics Actuarial science Moral hazard Automobile insurance Business Statistics Probability and Uncertainty
Zdroj:	Annals of Actuarial Science. 16:243-260
ISSN:	1748-5002 1748-4995
DOI:	10.1017/s1748499521000191
Popis:	Ex post moral hazard arises when the insured has an unobservable influence on the size of a loss after its occurrence. In automobile (property) insurance, ex post moral hazard could increase in the scope of the repairs and/or the value of the repairs. Both vehicle owners and auto repairers could gain from increasing the scope of repairs, while auto repairers would gain from an increase in the value of repairs. An analysis of 994 Australian road traffic crashes found that ex post moral hazard increased the value of repairs by 46.8 per cent of which 9 percentage points was explained by an increase in the scope of the repairs, which was defined as an increased from 2 to 2.4 parts per auto repair.
Databáze:	OpenAIRE
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