IDEAS home Printed from https://ideas.repec.org/a/pal/genrir/v31y2006i1p5-9.html
   My bibliography  Save this article

Optimal insurance contracts without the non-negativity constraint on indemnities: revisited

Author

Listed:
  • Michael Breuer

    (Socioeconomic Institute, University of Zurich, Hottingerstr 10, 8032 Zurich, Switzerland, e-mail: mbreuer@soi.unizh.ch)

Abstract

In the literature on optimal indemnity schedules, indemnities are usually restricted to be non-negative. Keeler [1974] and Gollier [1987] show that this constraint might well bind: insured could get higher expected utility if insurance contracts would allow payments from the insured to the insurer at some losses. This paper extends Collier's findings by allowing for negative indemnity payments for a broader class of insurers' cost functions and argues that the indemnity schedule derived here is more appropriate for practical applications (e.g. in health insurance). The Geneva Risk and Insurance Review (2006) 31, 5–9. doi:10.1007/s10713-006-9463-0

Suggested Citation

  • Michael Breuer, 2006. "Optimal insurance contracts without the non-negativity constraint on indemnities: revisited," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 31(1), pages 5-9, July.
    • Handle: RePEc:pal:genrir:v:31:y:2006:i:1:p:5-9
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/grir/journal/v31/n1/pdf/grir2006182a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/grir/journal/v31/n1/full/grir2006182a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J François Outreville, 2010. "The Geneva Risk and Insurance Review 2009: In Quest of Behavioural Insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(3), pages 484-497, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:genrir:v:31:y:2006:i:1:p:5-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.