Demand of Insurance under the Cost-of-Capital Premium Calculation Principle

Demand of Insurance under the Cost-of-Capital Premium Calculation Principle

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We study the optimal insurance design problem.This is a cystorelin 100ml risk sharing problem between an insured and an insurer.The main novelty in this paper is that we study this optimization problem under a risk-adjusted premium calculation principle for the insurance cover.This risk-adjusted premium calculation principle uses the cost-of-capital approach as it is suggested (and used) by the regulator and cottonmouth 3.5 high shirt the insurance industry.