@article{ART002227884},
author={Hong,Soon-Koo},
title={A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2017},
volume={28},
number={2},
pages={59-97},
doi={10.23842/jif.2017.28.2.003}
TY - JOUR
AU - Hong,Soon-Koo
TI - A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage
JO - Journal of Insurance and Finance
PY - 2017
VL - 28
IS - 2
PB - Korea Insurance Research Institute
SP - 59
EP - 97
SN - 2384-3209
AB - It is well-known in the insurance economics that the objective function with expected utility may not be concave in the deductible level purchased by the insured, unlike coinsurance case. First, we show that given the proportional loading, expected utility function with respect to deductible level is strictly quasi-concave. In addition, as our main contribution, we establish a set of premium conditions under which a risk-averse individual selects full, partial or no coverage level, and gives an intuitive economic interpretation. Moreover, we also consider the comparative statics effects of changes in risk aversion and in wealth. In comparison with the existing literature; for example, Schlesinger (1981), all the findings of this article are obtained only by proportional loading assumption without further restriction on the expected utility function.
KW - deductible;demand for insurance;no coverage;partial insurance;full insurance
DO - 10.23842/jif.2017.28.2.003
ER -
Hong,Soon-Koo. (2017). A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage. Journal of Insurance and Finance, 28(2), 59-97.
Hong,Soon-Koo. 2017, "A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage", Journal of Insurance and Finance, vol.28, no.2 pp.59-97. Available from: doi:10.23842/jif.2017.28.2.003
Hong,Soon-Koo "A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage" Journal of Insurance and Finance 28.2 pp.59-97 (2017) : 59.
Hong,Soon-Koo. A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage. 2017; 28(2), 59-97. Available from: doi:10.23842/jif.2017.28.2.003
Hong,Soon-Koo. "A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage" Journal of Insurance and Finance 28, no.2 (2017) : 59-97.doi: 10.23842/jif.2017.28.2.003
Hong,Soon-Koo. A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage. Journal of Insurance and Finance, 28(2), 59-97. doi: 10.23842/jif.2017.28.2.003
Hong,Soon-Koo. A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage. Journal of Insurance and Finance. 2017; 28(2) 59-97. doi: 10.23842/jif.2017.28.2.003
Hong,Soon-Koo. A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage. 2017; 28(2), 59-97. Available from: doi:10.23842/jif.2017.28.2.003
Hong,Soon-Koo. "A Study on Deductible Insurance Demand: Premium Conditions for No Coverage, Partial Coverage and Full Coverage" Journal of Insurance and Finance 28, no.2 (2017) : 59-97.doi: 10.23842/jif.2017.28.2.003
