Asymmetric Information in Insurance Markets | Munich Center for the Economics of Aging - MEA
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Asymmetric Information in Insurance Markets

In recent years, testing for asymmetric information in insurance markets has gained much popularity. This leads to narrowing the gap between theory and empirical evidence. Empirical results also show directions for further theoretical developments. The theory of asymmetric information has been well understood for a long time (Akerlof ,1970; Rothschild and Stiglitz ,1976; Holmström ,1979; Shavell, 1979). The models for both phenomena, i.e. adverse selection and moral hazard, predict a positive correlation between risk and coverage. Although it is in general difficult to disentangle adverse selection from moral hazard, tests for asymmetric information as a whole are possible. While the theory has been highly developed, empirical studies have lagged behind. One reason is the scarcity of data sets in this field. The aim of this project is both to test for asymmetric information in insurance markets and to develop new econometric methods. In Su and Spindler (2013, Journal of Business and Economic Statistics) a nonparametric test for asymmetric information is proposed and applied to both long-term care and automobile insurance. In a series of papers tests for asymmetric information are conducted in the German car insurance (Spindler, Winter and Hagmayer, 2013, Journal of Risk and Insurance), in the disability insurance (Spindler, 2013) and in the market for daily hospital benefits (Spindler, 2014, The Geneva Risk and Insurance Review).
Ansprechpartner
Spindler-2

Martin Spindler

Vorträge und Beiträge
Prof. Dr. Martin Spindler
Asymmetric Information and Unobserved Heterogeneity in the Accident Insurance
Prof. Dr. Martin Spindler
Asymmetric Information and Unobserved Heterogeneity in the Accident Insurance
Prof. Dr. Martin Spindler
Asymmetric Information and Unobserved Heterogeneity in the Accident Insurance
Prof. Dr. Martin Spindler
Asymmetric Information and Unobserved Heterogeneity in the Accident Insurance
Prof. Dr. Martin Spindler
“They do know what they are doing ... at least most of them.” Asymmetric information in the (private) disability insurance
Publikationen

16-2014
Spindler, Martin: "How do unisex rating regulations affect gender differences in insurance premiums?".

Spindler, Martin (2014): "Econometric Methods for Testing for Asymmetric Information Information – A Comparison of Parametric and Nonparametric Methods with an Application to Hospital Daily Benefits". In: The Geneva Risk and Insurance Review, 39, S. 254 - 266.

08-2012
Spindler, Martin; Winter, Joachim; Hagmayer, Steffen: "Asymmetric Information in the Market for Automobile Insurance: Evidence from Germany".