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dc.contributor.authorAase, Knut Kristian
dc.date.accessioned2017-10-25T13:48:35Z
dc.date.available2017-10-25T13:48:35Z
dc.date.created2017-09-11T13:58:09Z
dc.date.issued2017
dc.identifier.citationRisks. 2017, 5 (3), .nb_NO
dc.identifier.issn2227-9091
dc.identifier.urihttp://hdl.handle.net/11250/2462175
dc.description.abstractWe reconsider costs in insurance, and suggest a new type of cost function, which we argue is a natural choice when there are relatively small, but frequent, claims. If a fixed cost is incurred each time a claim is made, we obtain a Pareto optimal deductible even if the cost function does not vary with the indemnity. The classical result says that deductibles appear if and only if costs are variable. This implies that when the claims are relatively small, it is not optimal for the insured to be compensated, since the costs outweigh the benefits and a deductible will naturally occur. When we constrain the contract to contain a cap, a non-trivial deductible is Pareto optimal regardless of the assumptions about the cost structure, which is what is known as an XL-contract.nb_NO
dc.language.isoengnb_NO
dc.rightsNavngivelse 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/deed.no*
dc.titleOptimal Insurance Policies in the Presence of Costsnb_NO
dc.typeJournal articlenb_NO
dc.typePeer reviewednb_NO
dc.description.versionpublishedVersionnb_NO
dc.source.pagenumber17nb_NO
dc.source.volume5nb_NO
dc.source.journalRisksnb_NO
dc.source.issue3nb_NO
dc.identifier.doi10.3390/risks5030046
dc.identifier.cristin1492707
cristin.unitcode191,10,0,0
cristin.unitnameInstitutt for foretaksøkonomi
cristin.ispublishedtrue
cristin.fulltextoriginal
cristin.qualitycode1


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Navngivelse 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Navngivelse 4.0 Internasjonal