This text introduces the reader to the core issues and analytical tools of insurance economics. It examines in detail the supply and demand of insurance, insurance regulation and social insurance in a uniform style, bringing together contributions to the literature that to date have only been available through journal articles and handbook chapters. Wherever possible, the authors derive predictions from the theory presented and compare them with empirical research results. Extensive, precise conclusions summarize the topics, helping readers to check their understanding as they advance through the book.