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Developments in Risk and Insurance Economics: The Past 50 Years

Author

Listed:
  • Henri Loubergé

    (GSEM – Geneva School of Economics and Management)

  • Georges Dionne

    (Canada Research Chair in Risk Management and Finance Department, HEC Montréal)

Abstract

This chapter reviews the evolution in risk and insurance economics over the past 50 years, first recalling the situation in 1973 and then presenting the developments and new approaches that have flourished since then. We argue that these developments were only possible because steady advances were made in the economics of risk and uncertainty and in financial theory. Insurance economics has grown in importance to become a central theme in modern economics, providing not only practical examples and original data to illustrate new theories but also inspiring new ideas that are relevant to the overall economy.

Suggested Citation

  • Henri Loubergé & Georges Dionne, 2025. "Developments in Risk and Insurance Economics: The Past 50 Years," Palgrave Macmillan Books,, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-3-031-69561-2_1
    DOI: 10.1007/978-3-031-69561-2_1
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    References listed on IDEAS

    as
    1. Jiang Cheng & Elyas Elyasiani & Jingyi (Jane) Jia, 2011. "Institutional Ownership Stability and Risk Taking: Evidence From the Life–Health Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(3), pages 609-641, September.
    2. repec:bla:scandj:v:97:y:1995:i:1:p:123-35 is not listed on IDEAS
    3. Narjess Boubakri, 2011. "Corporate Governance and Issues From the Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 78(3), pages 501-518, September.
    4. Ilia Tsetlin & Robert L. Winkler, 2005. "Risky Choices and Correlated Background Risk," Management Science, INFORMS, vol. 51(9), pages 1336-1345, September.
    5. Hyojoung Kim & Doyoung Kim & Subin Im & James W. Hardin, 2009. "Evidence of Asymmetric Information in the Automobile Insurance Market: Dichotomous Versus Multinomial Measurement of Insurance Coverage," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(2), pages 343-366, June.
    6. William B. Fairley, 1979. "Investment Income and Profit Margins in Property-Liability Insurance: Theory and Empirical Results," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 192-210, Spring.
    7. M. Martin Boyer & Eric Jacquier & Simon Van Norden, 2012. "Are Underwriting Cycles Real and Forecastable?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 79(4), pages 995-1015, December.
    8. Mayers, David & Smith, Clifford W, Jr, 1990. "On the Corporate Demand for Insurance: Evidence from the Reinsurance Market," The Journal of Business, University of Chicago Press, vol. 63(1), pages 19-40, January.
    9. Rochet, Jean-Charles & Villeneuve, Stéphane, 2011. "Liquidity management and corporate demand for hedging and insurance," Journal of Financial Intermediation, Elsevier, vol. 20(3), pages 303-323, July.
    10. Smart, Michael, 2000. "Competitive Insurance Markets with Two Unobservables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 153-169, February.
    11. Neil Doherty & Richard Phillips, 2002. "Keeping up with the Joneses: Changing Rating Standards and the Buildup of Capital by U.S. Property-Liability Insurers," Journal of Financial Services Research, Springer;Western Finance Association, vol. 21(1), pages 55-78, February.
    12. Jianli Wang & Jingyuan Li, 2015. "Precautionary Effort: Another Trait for Prudence," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 82(4), pages 977-983, December.
    13. Kunreuther, Howard & Pauly, Mark, 1985. "Market equilibrium with private knowledge : An insurance example," Journal of Public Economics, Elsevier, vol. 26(3), pages 269-288, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Insurance economics; Optimal insurance protection; Optimal self-protection; Insurance pricing; Insurance demand; Economics of risk and uncertainty; Financial economics; Risk management; Asymmetric information; Insurance markets; Climate finance;
    All these keywords.

    JEL classification:

    • A33 - General Economics and Teaching - - Multisubject Collective Works - - - Handbooks
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • D10 - Microeconomics - - Household Behavior - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G52 - Financial Economics - - Household Finance - - - Insurance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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