The Design of Optimal Insurance Contracts without the Nonnegativity Constraint on Claims

1987 ◽  
Vol 54 (2) ◽  
pp. 314 ◽  
Author(s):  
Christian Gollier
Keyword(s):  
Optimal Insurance ◽  
Insurance Contracts

scholarly journals Pareto-Optimal Insurance Contracts With Premium Budget and Minimum Charge Constraints

2019 ◽  
Author(s):  
Alexandru Vali Asimit ◽  
Ka Chun Cheung ◽  
Wing Fung Chong ◽  
Junlei Hu
Keyword(s):  
Pareto Optimal ◽  
Optimal Insurance ◽  
Insurance Contracts

scholarly journals OPTIMAL ASSET ALLOCATION IN LIFE INSURANCE: THE IMPACT OF REGULATION

2016 ◽  
Vol 46 (3) ◽  
pp. 605-626 ◽  
Author(s):  
An Chen ◽  
Peter Hieber
Keyword(s):  
Life Insurance ◽  
Asset Allocation ◽  
Regulatory Policy ◽  
Capital Requirements ◽  
Insurance Company ◽  
Traffic Light ◽  
Optimal Insurance ◽  
Insurance Contracts ◽  
Solvency Capital ◽  
The Impact

AbstractIn a typical equity-linked life insurance contract, the insurance company is entitled to a share of return surpluses as compensation for the return guarantee granted to the policyholders. The set of possible contract terms might, however, be restricted by a regulatory default constraint — a fact that can force the two parties to initiate sub-optimal insurance contracts. We show that this effect can be mitigated if regulatory policy is more flexible. We suggest that the regulator implement a traffic light system where companies are forced to reduce the riskiness of their asset allocation in distress. In a utility-based framework, we show that the introduction of such a system can increase the benefits of the policyholder without deteriorating the benefits of the insurance company. At the same time, default probabilities (and thus solvency capital requirements) can be reduced.

Optimal Insurance Contracts with Limited Commitment and Unobservable Disability

2019 ◽  
Author(s):  
Kyoung Jin Choi ◽  
Junkee Jeon ◽  
Ho-Seok Lee ◽  
Hsuan-Chih Lin
Keyword(s):  
Limited Commitment ◽  
Optimal Insurance ◽  
Insurance Contracts

scholarly journals An Extension of the Gerber-Bühlmann-Jewell Conditions for Optimal Risk Sharing

2004 ◽  
Vol 34 (1) ◽  
pp. 27-48 ◽  
Author(s):  
Marek Kaluszka
Keyword(s):  
Risk Sharing ◽  
Sufficient Conditions ◽  
Utility Functions ◽  
Optimal Reinsurance ◽  
Optimal Insurance ◽  
Insurance Contracts ◽  
Optimal Dividend ◽  
Sufficient Conditions For Optimality ◽  
Necessary And Sufficient ◽  
Optimal Risk Sharing

We provide necessary and sufficient conditions for optimality of mutual contracts for risk sharing under constraints on premiums or utility functions of participants of the agreement. These conditions are an extension of those of the Borch, Gerber and Bühlmann-Jewell ones. Some applications to optimal insurance contracts, optimal dividend sharing and optimal reinsurance are given.

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