Insuring Project Risks: Contractor Expectations versus Insurance Company Policies

Insuring Liability Risks

(Over)insuring Modest Risks

Despite the large literature on anomalies in risky choice, very little research has explored the relevance of these insights in real insurance markets. This paper uses new data on consumers’ choices of deductibles for home insurance to provide evidence that a surprising level of risk aversion over modest stakes is a reality in the market. Most customers purchase low deductibles despite costs si...

Insuring risks when pure premium is infinite ?

Insurability is a major issue for risk managers in the insurance industry. Zajdenweber (1996) mentioned that business interruption is hardly insurable, using extreme value results: the right tail of the distribution should be modeled using some Pareto distribution with parameter 1, which has none finite moment. Since the expected value in tails is infinite, on a theoretical point of view, it be...

Modeling contractor and company employee behavior in high hazard operation

The recent blow-out and subsequent environmental disaster in the Gulf of Mexico have highlighted a number of serious problems in scientific thinking about safety. Risk models have generally concentrated on technical failures, which are easier to model and for which there are more concrete data. However, many primary cause of the disasters, such as BP’s Texas City and Deepwater Horizon, are root...

Insuring Health or Insuring Wealth? An Experimental Evaluation of Health Insurance in Rural Cambodia

We randomize the insurance premium for the SKY micro-health insurance program in rural Cambodia, allowing us to estimate the causal effects of health insurance on economic, health care utilization, and health outcomes. We nd that SKY insurance has its greatest impact on economic outcomes. SKY also changed health-seeking behavior, increasing the use of covered public facilities and decreasing th...