The Economics of Insurance: A Derivatives-Based Approach
本文用衍生品定价与对冲的视角重新审视保险经济学，论证了无套利保费在完全与不完全市场中的合理性，并展示了可分散异质风险对保费决定的重要性，以及衍生品在降低保险公司破产风险中的作用。
This article revisits the economics of insurance using insights from derivatives pricing and hedging. Applying this perspective, I emphasize the following insights applicable to insurance. First, I provide a valid justification for the use of arbitrage-free insurance premiums. This justification applies in both complete and incomplete markets. Second, I demonstrate the importance of diversifiable idiosyncratic risk for the determination of insurance premiums. And third, analyzing the insurance industry using the functional approach, I show the importance of derivatives and the synthetic construction of derivatives for reducing an insurance company's insolvency risk.