• Media type: Report; E-Book
  • Title: The gains of ignoring risk: Insurance with better informed principals
  • Contributor: Abrardi, Laura [Author]; Colombo, Luca [Author]; Tedeschi, Piero [Author]
  • Published: Milano: Università Cattolica del Sacro Cuore, Dipartimento di Economia e Finanza (DISCE), 2019
  • Language: English
  • Keywords: D82 ; Asymmetric information ; D43 ; Risk assessment ; G22 ; Insurance markets ; Market concentration
  • Origination:
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  • Description: We study a competitive insurance market in which insurers have an imperfect informative advantage over policyholders. We show that the presence of insurers privately and heterogeneously informed about risk can explain the concentration levels, the persistent profitability and the pooling of risk observed in some insurance markets. Furthermore, we find that a lower market concentration may entail an increase in insurance premia.
  • Access State: Open Access