Price Cutting in Liability Insurance Markets

Price Cutting in Liability Insurance Markets

This article analyzes alleged underpricing of general liability insurance prior to the mid-1980s liability insurance "crisis." The theoretical analysis considers whether moral hazard and/or heterogeneous information for forecasting claim costs can cause some firms to price too low and depress other firms' prices. Crosssectional analysis of insurer loss forecast revisions (which should be greate...

The Liability Crisis and the Dynamics of Competitive Insurance Markets

Realizing Efficient Cyber-Insurance Markets Via Price Discriminating Security Products

Current cyber-insurance research community has mainly focussed about studying the market success of an insurance-driven security ecosystem. Such an ecosystem comprises of several market elements like cyber-insurers, ISPs, network users (individuals and organizations), security vendors (SVs), regulatory agencies, etc.,which coexist with the goal of mutually satisfying one’s interests in order to...

Liability and liability insurance for medical malpractice.

Physicians typically carry virtually complete malpractice insurance coverage. This contradicts standard theoretical predictions that under a negligence rule of liability there should be no demand for insurance, and insurance policies under moral hazard will contain co-payment provisions. It is argued that judicial 'errors' in defining negligence generate a demand for liability and legal defense...

Trust & Insurance Markets Trust & Insurance Markets

Trust is a key determinants of any financial transaction. Exchanges in insurance markets are a particular type of financial transaction where a current payment – the premium – is exchanges for a promise of a future, contingent payment – the indemnity due when the casualty occurs. We argue that trust is key in fostering these type of exchanges. Trust enters two ways: because it affects the willi...