Information Asymmetry in Insurance Market
Information Asymmetry in Insurance Market

Author(s): Michaela Florianová
Subject(s): Financial Markets, Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: Information asymmetry; insurance; insurance market; moral hazard; adverse selection; asymmetric information;
Summary/Abstract: Does information asymmetry exist in the insurance market? Does it impact the market equilibrium? These are current topics of the research dealing with economic and insurance issues. Many publications have been published over the last century, confirming or refuting the existence of information asymmetry in the non-life insurance market same as in the life insurance market. The aim of this article is to introduce the topic of information asymmetry, including the supply and demand point of view and dividing the asymmetry on adverse selection and moral hazard. The main goal of this paper is to review and compare the results of existing publications and papers dealing with information asymmetry in the insurance market, with focus on differences between life and non-life insurance research results, and open the door for further discussions on this issue.

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