Asymmetric Information in Automobile Insurance: New Evidence from Telematic Data∗
نویسندگان
چکیده
We provide novel insights into the effects of private information in automobile insurance. Our analysis is based on telematic data of insured cars which includes detailed information about driving behavior that is unobservable to the insurance company. We find that private information about driving behavior has significant and counteracting effects on the choice of third-party liability and first-party insurance coverage. Yet, there is no residual correlation between the level of insurance coverage and risk. These results suggest overlapping and offsetting effects of private information based on risk preferences and driving behavior.
منابع مشابه
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