Insurance, games and psychology

Document description

This paper describes Game Theory and the psychological aspects of decisionmaking. Both these areas of work have some useful and interesting insights into where traditional/logical financial models may fall down. The paper considers how aspects of Game Theory and psychology may apply to general insurance, both for actuaries who work in this area, as well as the buyers and sellers of insurance. The plan is to construct a "game" to be played before and during GIRO to illustrate some of the points referred to in this paper.