Research on Risk Management Described by a Researcher at University of Texas Dallas (Whoops! It Happened Again: Demand for Insurance That Covers Multiple Risks): Insurance – Risk Management

2023 APR 25 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on risk management. According to news reporting out of Richardson, Texas, by NewsRx editors, research stated, “This article studies insurance demand in a two-period framework in which an individual faces risks in both current and future periods.”

Our news editors obtained a quote from the research from University of Texas Dallas: “Models for insurance with and without the presence of endogenous saving are both discussed. In contrast to what most literature suggests, when decisions on insurance and saving are made separately, insurance alone does not always unambiguously reduce risk, and decision makers might demand more insurance when there is a positive loading on the premium than when the insurance price is actuarially fair.”

According to the news editors, the research concluded: “We compare the demand for insurance in our framework with that in a two-period model where risk is concentrated in the second period and derive the conditions under which these demands differ. We examine the effects of risk aversion and derive the conditions under which a more risk-averse individual demands more or less insurance.”

For more information on this research see: Whoops! It Happened Again: Demand for Insurance That Covers Multiple Risks. Risks, 2023,11(4). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11040073.

Our news journalists report that additional information may be obtained by contacting Liang Hong, Department of Mathematical Sciences, University of Texas Dallas, Richardson, TX 75080, United States. Additional authors for this research include Harris Schlesinger, Boyi Zhuang.

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: Boyi Zhuang (http://orcid.org/0000-0002-3649-0393).

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