Dr David Rowell presents at EGRIE

On Friday 23 September 2018, Dr David Rowell presented an empirical paper on ex post moral hazard at the 45th seminar of the European Group of Risk and Insurance Economists (EGRIE) in Nuremberg, Germany.

Empirical tests for consumer-push and producer-pull ex post moral hazard in a market for automobile insurance (Rowell, D., Nghiem. S. & Connelly, L.)


Ex post moral hazard arises when the insured has an unobservable influence on the size of a loss after its occurrence. In automobile (property) insurance, ex post moral hazard could be caused by “consumer-push and/or “producer-pull” as both parties may gain from receiving or performing more extensive and expensive repairs. An analysis of 994 Australian road traffic crashes found that producer-pull adds 29.1 per cent to the cost of repairs, while consumer-push had no statistically significant effect. The cost of ex post moral hazard outweighs reported estimates of ex ante moral hazard, by a ratio of three to one.

JEL Codes: D82, G22

View paper (PDF, 231.3 KB)

Last updated:
18 December 2018