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On insurance contract design for low probability events

Author

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  • Eric Langlais

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper extends the analysis of insurance contracts design to the case of "low probability events", when there is a probability mass on the event "no accident-zero loss". The optimality of the deductible clause is discussed both at the theoretical and empirical levels.

Suggested Citation

  • Eric Langlais, 2008. "On insurance contract design for low probability events," Working Papers hal-04140722, HAL.
    • Handle: RePEc:hal:wpaper:hal-04140722
    Note: View the original document on HAL open archive server: https://hal.science/hal-04140722
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    References listed on IDEAS

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