How will each of the following affect the supply for insurance:
a. a larger pool of insured persons
b. lower administration costs for insurance companies
c. higher premiums (with no change in risk experience)
d. a greater degree of risk aversion on the part of insurers
a. A larger pool of insured persons would tend to increase the supply for insurance, due to the fact that there will be more insurance providers vying for the patronage of a decreased number of ...
This solution discusses factors affecting insurance supply.