D82 - Asymmetric and Private Information; Mechanism DesignReturn

This article elaborates on how information is provided in the terms and conditions of various insurers and how it is related to one of potential demonstrations of information asymmetry. The aim of this article is to evaluate the level of knowledgeableness in the insurance conditions of the characteristic insured value within insured property. The research was carried out till the date Dec 1, 2013.This article analyses the supply side of the insurance market, i.e. insurers, evaluating how insurers inform their clients of the characteristic insured value. Evaluation of the rate of knowledgeableness is achieved by the method of comparison of the standard of information with actual information provided within the insurers' terms and conditions. This article also presents a calculation of the rate of knowledgeableness. The standard of information is established based on analysis and synthesis of knowledge of insurance theory, practice and legislation in the Czech Republic. The method of selection is also used. The outcome of this article is a model of the standard terms and conditions regarding the characteristic insured value, evaluation of knowledgeableness within the Czech insurance market and presentation of specific recommendations for the insurance market to improve the rate of knowledgeableness.

This article is dealt with changes in integration process on financial market, namely for banking and insurance market. Tendency of banks and insurance companies to develop of bancassurance brings synergic effects and intersectional stabilizer. Citizens of each country have different ideas about the financials products and services. Nevertheless bancassurance creates on the market completely a new space but it can be expected that its popularity will not be grow in the future.

This article is dealt about present financial crisis as a result of previous credit expansion through public finance, consumer or mortgage credits above the frame tolerable of market principles. Debt problem vas mask with financial instrument innovations namely structured bonds in securing form. By the help of this instruments were walked around the state regulatory barriers and postpone assignment of disequilibrium. Authors show on the role of investment banking and rating agencies in this process. Special attention is paid to impact of financial crisis on insurance business, partly from the point of view obligations insurance, partly of from the point of view portfolio impacts. The article calls attention on asymmetry information problem and possible influence of crisis impact on stabilization regulatory projects (namely Solvency II for insurance branch) which have had made more efficient governmental supervisory body on financial markets.

The Nobel Prize award to scientists for thier theoretical contribution to analysis of markets with asymmetrical informations has reawakened debates on the behavior and decision-making of economic player under uncertainty. Becouse insurance is an classic example of such a situation, it is used to illustrate the cases of asymmetry, for the clients is supposed to know better his own exposure then the insurer. In fact, the client´s objective exposure apriori be cannot quantified from the point of wiew of exact sciencis and his decision is futher influenced by psychological and sociological faktors. The insurer is better equipped to make calculations, drawing on past experience and using the laws of statistics, furtermore, he takes antiselection on account. The final part of the paper explores the field of insurance market regulation in relation to the asymmetry of information between an insurance company and its client.