Vulnerability and mutual insurance

  • Vulnerability comes, according to Orio Giarini, with two risks: human-made risks, also called entrepreneurial risks, and natural or pure risks such as accidents and earthquakes. Both types of risk are growing in dimension and are increasingly interrelated. To control the vulnerability, sophisticated insurance products are called for. Here, mutual insurance is relevant, in particular when risks are large, probabilities uncertain or unknown, and events interrelated or correlated. In this paper the following three examples are discussed and the advantages of mutual insurance are shown: unknown probabilities connected with unforeseeable events, correlated risks and macroeconomic or demographic risks.

Download full text files

Export metadata

Metadaten
Author:Roland EisenGND
URN:urn:nbn:de:hebis:30:3-793344
DOI:https://doi.org/10.1057/s41288-021-00217-7
ISSN:1468-0440
ISSN:2311-0112
Parent Title (English):The Geneva papers on risk and insurance - issues and practice
Publisher:Palgrave Macmillan
Place of publication:Basingstoke
Document Type:Article
Language:English
Date of Publication (online):2021/04/22
Date of first Publication:2021/04/22
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2023/11/07
Tag:Correlated risks; Macroeconomic risks; Mutuality principle; Unknown probabilities
Volume:46
Issue:2
Page Number:12
First Page:224
Last Page:235
Note:
Open Access funding enabled and organized by Projekt DEAL.
Institutes:Wirtschaftswissenschaften
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universit├Ątspublikationen
Licence (German):License LogoCreative Commons - CC BY - Namensnennung 4.0 International