This paper develops a theoretical framework for analyzing the decision to provide or buy insurance against the risk of … natural catastrophes. In contrast to conventional models of insurance, the insurer has a non-zero probability of insolvency … is insolvent, each loss reduces the indemnity available to the victims, thus generating negative pecuniary externalities …

The present research relaxes three of the usual assumptions made in the insurance literature. It is assumed that (1 … monopolistic. In this context, the article analyses two models of natural catastrophe insurance: a model of insurance with limited … insurance industry is characterized by economies of scale. The government should consequently encourage the emergence of a …

-bearing and insurance, for the liability system acts as an implicit insurer for accident victims and it imposes risk on potential … injurers (because they may have to pay judgments to victims). In this regard, victims' accident insurance and injurers …' liability insurance are taken into account. The third general aspect of accident liability is its administrative expense …

from a societal perspective: ex ante moral hazard from health insurance, externalities from vaccinations, lack of consumer … prevention means, the chapter reviews some basic theoretical insights about prevention from human capital models and insurance …