Abstract
The chapter shows the possibility of analyzing the insurance market by using the Rothschild–Stiglitz equilibrium model and its subsequent modifications. As an example the Polish market of compulsory third party liability insurance was used.
The first part of the chapterdescribes this market, both in terms of its structure and the financial results of insurance companies operating in the group 10 of insurance. In the next part, the main focus is on describing the assumptions of the Rothschild–Stiglitz model both for the markets characterized by full common knowledge and those operating under the conditions of information asymmetry. In the last part, the authors used the Rothschild–Stiglitz model to simulate the market behavior after having introduced a new type of insurance contract which allowed access to information collected by on-board ADR recorders. The simulation showed that, in accordance with the model, the use of new technologies can bring the market closer to the state of equilibrium.
Keywords:
insurance market equilibrium, RS model, motor insurance
Credits
| Authors | Kuryłowicz, Łukasz; Śliwiński, Adam |
| SGH Warsaw School of Economics | |
| Date | 2022 |
| Pages | 64-82 |
| Type | Chapter |
| ISBN | 978-83-8211-130-9 |
| DOI | 10.18559/978-83-8211-131-6/5 |
| How to cite | Kuryłowicz, Ł. i Śliwiński, A. (2022). Pojęcie równowagi na konkurencyjnym rynku ubezpieczeń. W: M. Lemkowska, M. Wojtkowiak (red.), Sektor ubezpieczeń w obliczu wyzwań współczesności (s. 64–82). Poznań: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu. https://doi.org/10.18559/978-83-8211-131-6/5 |
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