Economics of Insurance (Volume 29) (Advanced Textbooks in Economics, Volume 29) - Hardcover

Borch, K.H.; Sandmo, A.; Aase, K.K.

Hardcover

ISBN 10: 0444873449 ISBN 13: 9780444873446

Publisher: North Holland, 1989

Synopsis

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.Reinsurance is developed in the framework of general economic equilibrium theory under uncertainty. Here ordering of risks, preferences and utility theory play an important role. The book discusses the markets for insurance and divides them into three classes: (i) life insurance (ii) business insurance and (iii) household insurance, and these classes are each treated extensively in three separate chapters. Finally uninsurable risks are presented under "asymmetric information". Here moral hazard and adverse selection are treated and illustrations are given, some based on game theory.

About this title

Review

So the book is much more than a memorial to a famous scholar. It is an advanced textbook, indeed, that gives a vivid testimony of how insurance, as a field of scientific endeavour, can and should be developed from the economic point of view...
Journal of Economics
... the book is illuminated by Borch's considerable experience and knowledge of insurance and any student interested in insurance markets would learn much by working their way through the models.
The Economic Journal

Edition details

• Publisher: North Holland
• Publication date: 1989
• Language: English
• ISBN 10: 0444873449
• ISBN 13: 9780444873446
• Binding: Hardcover
• Edition number: 1
• Number of pages: 410