.png){kind=icon}
.png){kind=icon}
Return
Equilibrium with Monoline and Multiline Structures
.png){kind=icon}
PRE
AI
DOI：10.1093/rof/rfw073.png)
.png){kind=icon}
Original request for help.png){kind=icon}
Share.png){kind=icon}
Save
Abstract
En 中文
We study a competitive market for risk-sharing, in which risk-tolerant providers of risk protection, who face frictional costs in holding capital, offer coverage over a range of risk classes to risk-averse agents. We distinguish monoline and multiline industry structures and characterize when each structure is optimal. Markets for which the risks are limited in number, asymmetric or correlated will be served by monoline structures, whereas markets characterized by a large number of essentially independent risks will be served by many multiline firms. Our results are consistent with observed structures within insurance, and also have general implications for the financial services industry.
Keywords:
Insurance
Financial services
Risk-sharing
Diversification
AI Summary
Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.
Journal
IF:
8.4
Papers:
901
Citations:
4.8K
