Whoops! It Happened Again: Demand for Insurance That Covers Multiple Risks

This article studies insurance demand in a two-period framework which an individual faces risks both current and future periods. Models for with without the presence of endogenous saving are discussed. In contrast to what most literature suggests, when decisions on made separately, alone does not always unambiguously reduce risk, decision makers might more there is positive loading premium than price actuarially fair. We compare our that model where risk concentrated second period derive conditions under these demands differ. examine effects aversion risk-averse or less insurance.