Demand of Insurance under the Cost-of-Capital Premium Calculation Principle

Demand of Insurance under the Cost-of-Capital Premium Calculation Principle

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We study the optimal insurance design problem.This is a risk sharing problem between weleda skin food 75ml best price an insured and an insurer.The main novelty in this paper is that we study this optimization problem under a risk-adjusted premium calculation here principle for the insurance cover.This risk-adjusted premium calculation principle uses the cost-of-capital approach as it is suggested (and used) by the regulator and the insurance industry.