| 제목 | 49권 1호 A Model of Insurance Premium in Response to Probability of Loss | ||||
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| 작성자 | 성희 전 | 조회수 | 182 | 날짜 | 2022/06/01 |
| 첨부파일 |
A Model of Insurance Premium in Response to Probability of Loss.pdf |
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A Model of Insurance Premium in Response to Probability of Loss Daegon Cho Hyo-Youn Chu Abstract We apply a microeconomics model of the insurance firm designed to provide insight into firm price reaction to changes in loss probability. Based on the optimal insurance quantity and price from both consumer and firm points of view, comparative statics is shown in which buyer and seller interact to determine the insurance premium due to changes in the probability of loss. To test the theoretical model, we use a panel data set of 11 Korean liability insurance firms from 2008 to 2015. The regression results show that the insurance premium charged by the firm with more coverage benefit is more responsive to the probability of loss than that of the firm with less coverage benefit, in line with our theoretical result. Keywords Liability Insurance. Insurance Premium. Price Response. Probability of Loss. Empirical Analysis A Model of Insurance Premium in Response to Probability of Loss |
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