This study examines the impact of ownership structure on reinsurance decisions in the Chinese property casualty insurance industry. The evidence shows that foreign insurers have higher reinsurance demand than domestic insurers. Specifically, foreign insurers are more likely to purchase volunteer reinsurance. More important, foreign insurers are associated with a higher percentage of facultative...

Abstract We provide a comprehensive analysis of the impact probability weighting on optimal insurance demand in unified framework. identify decreasing relative overweighting as new local condition function that is useful for comparative static analysis. discuss effects coinsurance, deductible choice, low-probability, high-impact risks versus high-probability, low-impact risks, and presence nonp...

This paper characterises the insurance demand in terms of the entropy of the underlying probability distribution for losses. A characterisation of this nature provides the prediction that insurance for large losses with small probabilities tends to be purchased less frequently than insurance for moderate losses with higher probabilities, without deviating from the standard expected utility fram...