Is the market classification of risk always efficient?: evidence from German third party motor insurance

Reimund Schwarze; Thomas Wein

Is the market classification of risk always efficient? evidence from German third party motor insurance

Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet

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Is the market classification of risk always efficient? evidence from German third party motor insurance. / Schwarze, Reimund; Wein, Thomas.
in: German Risk and Insurance Review, Jahrgang 1, 2005, S. 173-203.

Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet

Bibtex

@article{ef7fda024eb54c3cae7d1a6f3074c816,

title = "Is the market classification of risk always efficient?: evidence from German third party motor insurance",

abstract = "This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union{\textquoteright}s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classifi-cation did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing exis-tence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance. ",

keywords = "Economics, Kraftfahrzeughaftpflichtversicherung , Haftpflichtrisiko , Markteffizienz ",

author = "Reimund Schwarze and Thomas Wein",

note = "Literaturverz. S. 200 - 203 http://www.risk-insurance.de/",

year = "2005",

language = "English",

volume = "1",

pages = "173--203",

journal = "German Risk and Insurance Review",

issn = "1860-5400",

publisher = "DiPP - NRW",

}

RIS

TY - JOUR

T1 - Is the market classification of risk always efficient?

T2 - evidence from German third party motor insurance

AU - Schwarze, Reimund

AU - Wein, Thomas

N1 - Literaturverz. S. 200 - 203 http://www.risk-insurance.de/

PY - 2005

Y1 - 2005

N2 - This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classifi-cation did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing exis-tence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

AB - This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classifi-cation did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing exis-tence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

KW - Economics

KW - Kraftfahrzeughaftpflichtversicherung

KW - Haftpflichtrisiko

KW - Markteffizienz

M3 - Journal articles

VL - 1

SP - 173

EP - 203

JO - German Risk and Insurance Review

JF - German Risk and Insurance Review

SN - 1860-5400

ER -

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