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Introduction: Insurance and Its Economic Role

  • Peter ZweifelEmail author
  • Roland Eisen
Chapter
  • 4.8k Downloads
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

Uncertaintyis at the heart of insurance. This is already manifested in our limited knowledge about (observable) past events. In the “real” world all our activities depend on uncertain and unknown circumstances beyond the control of a single individual. Unambiguous, deterministic cause-effect relationships are replaced by ambiguity in the perception of the economic environment. With respect to the future, uncertainty looms still larger. However, it is possible to make forecasts about future events even with incomplete knowledge of past events.

Keywords

Consumer Surplus Insurance Market Life Insurance Insurance Industry Premium Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ZurichZurichSwitzerland
  2. 2.MunichGermany

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