For a person A:

p(getting hit by a car) = 0.2

For a person B:

p(getting hit by a car) = 0.4

Expense in case of accident = 80000

Total income Y=C= 2200000 for A and B each.

Utility function u = c for both A and B

I calculated that how much they will be willing to pay for insurance is:

A = 16118.5

(equating expected utility with and without insurance)

If x is the premium,

2200000x = 0.2*220000080000 + 0.8*2200000

B= 32178 (using the same method as above)

Now suppose the insurer has complete information on A and B and their accident probabilities. How do I set up the insurer condition to find out how much the insurer can charge A and B? How do I calculate the producer surplus for the insurer in any one of the cases, let's say A and the consumer surplus for A?