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

We study the optimal insurance design problem.This is a risk sharing problem between an insured and an insurer.The main novelty in this paper is that we ashy bines protein powder study this optimization problem under a risk-adjusted premium calculation principle for the insurance cover.This risk-adjusted premium calculation principle uses the cost-of-capital approach as it is suggested marvos t coils (and used) by the regulator and the insurance industry.

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