I examine the design of optimal insurance contracts considering the possibility of
government disaster relief payments. This work focuses on the impact of (risky and …

In a reinsurance contract, a reinsurer promises to pay the part of the loss faced by an insurer
in exchange for receiving a reinsurance premium from the insurer. However, the reinsurer …

We study optimal insurance demand for a risk-and ambiguity-averse consumer under
ambiguity about contract nonperformance. Ambiguity aversion lowers optimal insurance …

Reinsurance and CAT bonds are two alternative risk management instruments used by
insurance companies. Insurers should be indifferent between the two instruments in a …

We provide a comprehensive analysis of the impact of probability weighting on optimal
insurance demand in a unified framework. We identify decreasing relative overweighting as …

The optimal reinsurance arrangement is identified whenever the reinsurer counterparty
default risk is incorporated in a one-period model. Our default risk model allows the …

This paper studies the optimal insurance design from the perspective of an insured when
there is possibility for the insurer to default on its promised indemnity. Default of the insurer …

This paper studies the design of optimal insurance from an insurer's perspective when it is
subject to adverse selection issue. Different from the literature, the insureds who are …

In this paper, we explore how to design the optimal insurance contracts when the insured
faces insurable, counterparty, and additive background risk simultaneously. The target is to …

The optimal reinsurance contract is investigated from the perspective of an insurer who
would like to minimise its risk exposure under Solvency II. Under this regulatory framework …