Description :

This chapter discusses insurance and economics the objective of a theory of insurance is to determine the relationship between the two elements which means that the results in the theory of insurance might be relevant in the study of uncertainty in general economics and finance. The theory of insurance is presented in this book discussed from the viewpoint of the theory of economics of uncertainty the principle of premium calculation which the book uses is based on economic equilibrium theory and differs from many of the premium systems discussed by actuaries. The theory of insurance is presented in this book discussed from the viewpoint of the theory of economics of uncertainty the principle of premium calculation which the book uses is based on economic equilibrium theory and differs from many of the premium systems discussed by actuaries. Written for advanced undergraduate and masters level courses this book builds from a base of asymmetric information issues to discuss a wide array of topics and is illustrated with some timely examples covers diverse issues such as risk aversion expected utility and moral hazard within the pure theory of insurance. Insurance economics brings together the economic analysis of decision making under risk risk management and demand for insurance by individuals and corporations objectives pursued and management tools used by insurance companies the regulation of insurance and the division of labor between private and social insurance