Moral Hazard, Basis Risk, and Gap Insurance

By Neil A. Doherty, Andreas Richter. 2002

127 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Soil Science

View Paper: https://www.semanticscholar.org/paper/4239d850be31d219c148270af59d04fa426e35b2

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Citations in the corpus

Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk Transfer Solutions (2008, unknown): “Doherty and Richter (2002) argue that the optimal contract may involve a combination of index-linked financial instruments and indemnity-based reinsurance contracts to cover the basis risk “gap.””
Mortality-Indexed Annuities Managing Longevity Risk Via Product Design (2011, background): “…transparency and basis risk has to be pondered, and it is similar to the discussion in the microeconomic literature of whether an index-based or an indemnitybased trigger is preferable when designing insurance-linked securities; see, for instance, Doherty (1997) or Doherty and Richter (2002).”
Pricing Death: Frameworks for the Valuation and Securitization of Mortality Risk* (2006, background): “papers by Doherty (1997) and Doherty and Richter (2002) .”
A Theory of Rational Demand for Index Insurance (2016, background): “One immediate implication of Theorem 1 is that gap insurance, which would make a payment in state L0 at least equal to the premium, would be valuable for the most risk averse if bundled with indexed cover (Doherty and Richter 2002).”
How Basis Risk and Spatiotemporal Adverse Selection Influence Demand for Index Insurance: Evidence from Northern Kenya (2014, background): “…gains offered by index insurance (or hedges) to the insurance market and the inverse relationships between basis risk and moral hazard, and between basis risk and demand have also been discussed in regards to reinsurance and catastrophe bonds (e.g., Doherty & Richter 2002; Lee & Yu 2002).”