Optimal Insurance Policies in the Presence of Costs
We reconsider costs in insurance, and suggest a new type of cost function, which we argue is a natural choice when there are relatively small, but frequent, claims. If a fixed cost is incurred each time a claim is made, we obtain a Pareto optimal deductible even if the cost function does not vary wi...
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| Format: | Article |
| Language: | English |
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MDPI AG
2017-09-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/5/3/46 |