Optimal insurance under maxmin expected utility

We examine a problem of demand for insurance indemnification, when the insured is sensitive to ambiguity and behaves according maxmin expected utility model Gilboa Schmeidler (J. Math. Econ. 18:141–153, 1989), whereas insurer (risk-averse or risk-neutral) expected-utility maximiser. characterise optimal indemnity functions both with without customary ex ante no-sabotage requirement on feasible indemnities, concave linear two agents. This allows us provide unifying framework in which we effects condition, marginal wealth, belief heterogeneity, as well (multiplicity priors) structure functions. In particular, show how singularity beliefs leads an function that involves full event assigns zero probability, while decision maker positive probability. several illustrative examples, numerical studies case Wasserstein Rényi set.