IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Optimal insurance contracts without the non-negativity constraint on indemnities: revisited

  • Michael Breuer

    (Socioeconomic Institute, University of Zurich, Hottingerstr 10, 8032 Zurich, Switzerland, e-mail:

Registered author(s):

    In the literature on optimal indemnity schedules, indemnities are usually restricted to be non-negative. Keeler [1974] and Gollier [1987] show that this constraint might well bind: insured could get higher expected utility if insurance contracts would allow payments from the insured to the insurer at some losses. This paper extends Collier's findings by allowing for negative indemnity payments for a broader class of insurers' cost functions and argues that the indemnity schedule derived here is more appropriate for practical applications (e.g. in health insurance). The Geneva Risk and Insurance Review (2006) 31, 5–9. doi:10.1007/s10713-006-9463-0

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Palgrave Macmillan in its journal The Geneva Risk and Insurance Review.

    Volume (Year): 31 (2006)
    Issue (Month): 1 (July)
    Pages: 5-9

    in new window

    Handle: RePEc:pal:genrir:v:31:y:2006:i:1:p:5-9
    Contact details of provider: Web page:

    Order Information: Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
    Web: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pal:genrir:v:31:y:2006:i:1:p:5-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulia Badea)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.