The existing literature in insurance economics has shown that narrow framing can explain why people buy too little insurance compared to what standard theory predicts. However, there is also ample evidence suggesting people sometimes buy too much insurance. In this talk, we assume S-shaped narrow framing, i.e., the local utility function for evaluating the net insurance payoff is convex in the loss domain but concave in the gain domain, and show that it can reconcile with both insurance puzzles simultaneously. Especially, we show the policyholder under S-shaped narrow framing is more likely to underinsure more negatively skewed risks of loss but to overinsure less negatively skewed risks of loss. We further characterize the optimal insurance scheme under S-shaped narrow framing while incentive compatibility is satisfied. It contains a straight deductible when the net insurance payoff is negative but partial insurance when the net insurance payoff is positive. (This is a joint work with Jiakun Zheng and Shengchao Zhuang.)

个人简介

池义春，中央财经大学保险学院、中国精算研究院研究员，现主要从事精算学与风险管理中的风险理论、最优保险/再保险设计以及变额年73882必赢网页版金的定价和对冲等研究，主持过三项国家自然科学基金项目和一项教育部人文社科重点研究基地重大课题，在国际著名的精算学杂志Insurance: Mathematics and Economics、 ASTIN Bulletin、North American Actuarial Journal、Scandinavian Actuarial Journal，金融数学杂志Finance and Stochastics，运筹学杂志European Journal of Operational Research上发表二十多篇学术论文。2012年73882必赢网页版荣获北美产险精算学会Charles A. Hachemeister奖，2015年73882必赢网页版破格晋升为研究员。