Asymmetric information in (private) accident insurance

Testing for asymmetric information in insurance markets has become a very important issue in the empirical literature in the last years. We analyze the (private) accident insurance, which has not been analyzed before in the literature, but covers one of the most important risks faced by individuals in modern society, namely the loss of human capital. We give descriptive statistics which are of interest in its own and show that there is asymmetric information, but the extent depends on the amount of coverage.