This paper provides a theoretical explanation for the common observation that people often
fail to purchase insurance against low-probability high-loss events even when it is offered at …

We examine optimal insurance purchase decisions of individuals that exhibit behavior
consistent with Regret Theory. Our model incorporates a utility function that assigns a …

This article builds on Froot and Stein in developing a framework for analyzing the risk
allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers …

Considerable evidence suggests that many people for whom insurance is worth purchasing
do not have coverage and others who appear not to need financial protection against certain …

With pleasure I like to take this opportunity to thank all those who direct or indirectly helped
me to write this book. Special thanks go to my doctoral thesis supervisor Dr. Georg Pflug …

We estimate the demand for homeowners insurance in Florida and New York with indicated
loss costs as our proxy for the quantity of real insurance services demanded. We …

Catastrophe bonds (CAT bonds) are risk-linked securities used by the insurance industry to
transfer risks associated with the occurrence of natural disasters to the capital markets …

This paper discusses new challenges we face with terrorism as a catastrophic risk by
focusing on risk assessment, risk management as well as risk financing issues. The special …

The intense hurricane seasons of 2004 and 2005 caused considerable instability in property
insurance markets in coastal states with the greatest problems occurring in Florida and the …

Index insurance offers an innovative risk management solution for uninsured agricultural
weather risk. We investigate the theoretical relationship between prospect theory risk …