From a household’s perspective, insurance is an important part of financial planning and well-being. Traditionally, insurance has been used to diversify idiosyncratic health, life, longevity, and property/casualty risk. More recently, insurance is used to diversify aggregate risk across generations through guaranteed-return products that are replacing public and private pension plans. Adverse selection and moral hazard can arise in insurance markets when policyholders have more information than the insurer. These informational frictions can affect pricing and contractual form and ultimately cause market incompleteness.
Various frictions can also affect the supply side of insurance markets. Agency problems can cause insurance companies to not always act in the interests of policyholders and guaranty funds that protect them. Therefore, insurance companies are monitored and regulated in many countries. Regulation can in turn affect how insurance companies invest, what products they offer, and how they price products. Capital market imperfections and market power are also important frictions that affect the supply of insurance.
NBER’s Insurance Working Group is a forum for gathering experts from academia, government, and the industry to better understand insurance markets and to address related policy questions. We have a broad focus that welcomes both empirical and theoretical approaches from various fields of economics. We usually meet once a year for a one-day conference, part of which is joint with another NBER group (Corporate Finance, Health Care, Industrial Organization, or Public Economics).
Insgroup is one of the nation’s leading independent strategic risk and insurance advisors. Over 40 years we’ve established a reputation for relentless client advocacy, integrity, and exceptional service.
Insgroup is one of the largest privately held independent insurance brokers in Texas with offices in Houston and Austin. We are consistently ranked by Insurance Journal as one of the 100 largest independent property and casualty insurance agencies in the United States.
We pride ourselves in being able to serve all of our clients’ needs, from risk management and commercial insurance brokerage to employee benefits consulting and personal insurance services.
Our team of over 100 dedicated professionals are driven by their passion for client advocacy and recognized for their technical expertise and industry specific knowledge.
As a closely held independent firm, Insgroup answers only to our clients, not to outside investors or insurance carriers. We move quickly to address the needs of our clients and provide direct access to company leadership whenever necessary.
To learn more about how Insgroup can help insure your success, please contact us today.