Asymmetric information in automobile insurance: evidence from driving behavior

Based on a unique data set of driving behavior we find direct evidence that private information has significant effects on contract choice and risk in automobile insurance. The number of car rides and the relative distan
Based on a unique data set of driving behavior we find direct evidence that private information has significant effects on contract choice and risk in automobile insurance. The number of car rides and the relative distance driven on weekends are significant risk factors. While the number of car rides and average speeding are negatively related to the level of liability coverage, the number of car rides and the relative distance driven at night are positively related to the level of first-party coverage. These results indicate multiple and counteracting effects of private information based on risk preferences and driving behavior.
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Metadaten
Author:Daniela Kremslehner, Alexander Muermann
URN:urn:nbn:de:hebis:30:3-416822
URL:https://ssrn.com/abstract=2850537
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 543
Series (Serial Number):CFS working paper series (543)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Year of Completion:2016
Year of first Publication:2016
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2016/10/18
Issue:September 2016
Pagenumber:35
HeBIS PPN:390270954
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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