Handbook of Insurance: Volume I

The Handbook of Insurance reviews the last fifty years of research developments in insurance economics and its related fields. A single reference source for professors, researchers, graduate students, regulators, consultants, and practitioners, the book starts with the history and foundations of risk and insurance theory, followed by a review of prevention and precaution, asymmetric information, insurance fraud, risk management, insurance pricing, new financial innovations, reinsurance, corporate governance, capital allocation, securitization, systemic risk, insurance regulation, the industrial organization of insurance markets, and other insurance market applications. The new edition covers many topics that have risen in importance since the 2nd edition, such as climate risk, pandemic risk, insurtech, digital insurance, cyber risk, behavioral economics, Solvency II, corporate governance, enterprise risk management, and machine learning.

This edition of the Handbook contains 17 new chapters. Each of the chapters is written by leading international authorities in risk and insurance research. All contributions are peer reviewed, and each chapter can be read independently of the others.

It is a tour de force to provide to the insurance industry and its stakeholders a structured, complete, intelligent and critical synthesis of insurance economics in the twenty-first century. This is what you have in your hands. This third edition of the Handbook of Insurance should be the bible to anyone who wants to have a deep understanding of the complex challenges faced by insurance and reinsurance markets to create the large social value of risk sharing and risk diversification.

Christian Gollier, Director of the Toulouse School of Economics

This collective work not only offers a remarkable synthesis of cutting-edge research in insurance economics but also provides a rare resource, both comprehensive and authoritative, for professionals seeking a deeper understanding of insurance industry fundamentals and emerging trends. The content of the Handbook reflects the richness and dynamics of the field and underlines the many facets involved in better understanding how insurance works and contributes to society.

Kai-Uwe Schanz, Deputy Managing Director, Head of Research & Foresight, The Geneva Association