Journal article
Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence From Auto Insurance
The Journal of risk and insurance, v 80(4), pp 1001-1026
Dec 2013
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This article investigates the impact of policyholder tenure on contractual relationships in nonlife insurance markets. For a sample of auto insurance policies, we find that average risk decreases with policyholder tenure, but the effect is entirely due to the impact of observable information. We reject the hypothesis that the incumbent insurer is privately learning faster about quality of their policyholders. We highlight the importance of a public signal regarding policyholders' claims experiences and suggest alternative explanations for the unconditional relationships in the data.
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Details
- Title
- Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence From Auto Insurance
- Creators
- Paul Kofman - University of MelbourneGregory P. Nini - Drexel University, Finance
- Publication Details
- The Journal of risk and insurance, v 80(4), pp 1001-1026
- Publisher
- Wiley
- Number of pages
- 26
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000328574300006
- Scopus ID
- 2-s2.0-84890438768
- Other Identifier
- 991021873115104721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance
- Economics