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Self-insurance

  • Matthias RödlEmail author
Chapter
Part of the Management, Organisation und ökonomische Analyse book series (MOÖA)

Abstract

This chapter extends the previous results in regard to demand, granting the insured the ability to reduce the loss magnitude via self-insurance efforts. In general, it is established that self-insurance and index insurance are substitutes, with the level of efforts undertaken being extended in comparison to a situation with a classic insurance being offered. The effect is two fold; on the one hand, efforts are increased because coverage under an index based insurance is smaller than under a classic insurance while further, basic chance and basic risk promote some additional undertaking of efforts.

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Copyright information

© Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2019

Authors and Affiliations

  1. 1.VallendarGermany

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