Download or read book Managing the Insolvency Risk of Insurance Companies written by J. David Cummins and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: Two different applications have been considered, automobile claims from Massachusetts and health expenses from the Netherlands. We have fit 11 different distributions to these data. The distributions are conveniently nested within a single four parameter distribution, the generalized beta of the second type. This relationship facilitates analysis and comparisons. In both cases the GB2 provided the best fit and the Burr 3 is the best three parameter model. In the case of automobile claims, the flexibility of the GB2 provides a statistically siE;nificant improvement in fit over all other models. In the case of Dutch health expenses the improvement of the GB2 relative to several alternatives was not statistically significant. * The author appreciates the research assistance of Mark Bean, Young Yong Kim and Steve White. The data used were provided by Richard Derrig of The Massachusetts Automobile Rating and Accident Prevention Bureau and by Bob Van der Laan and The Silver Cross Foundation for the medical insurance claim data. 2~ REFERENCES Arnold, B. C. 1983. Pareto Distributions. Bartonsville: International Cooperative Publishing House. Cummins, J. D. and L. R. Freifelder. 1978. A comparative analysis of alternative maximum probable yearly aggregate loss estimators. Journal of Risk and Insurance 45:27-52. *Cummins, J. D., G. Dionne, and L. Maistre. 1987. Application of the GB2 family of distributions in collective risk theory. University of Pennsylvania: Mimeographed manuscript. Hogg, R. V. and S. A. Klugman. 1983. On the estimation of long tailed skewed distributions with actuarial applications.
Download or read book Insurance and Issues in Financial Soundness written by Nigel Davies and published by International Monetary Fund. This book was released on 2003-07-01 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability. Building on this experience and the experience gained under the FSAP, the paper proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.
Download or read book Insolvencies Among Automobile Insurers written by Douglas G. Olson and published by . This book was released on 1970 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managing Capital and Insolvency Risk Via Internal Capital Market Transactions written by Greg Niehaus and published by . This book was released on 2014 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understanding the movement of capital between insurers and affiliated companies under common ownership is important for understanding insurer insolvency risk and the impact of regulatory policies regarding capital standards and group supervision. Aggregate data indicate that life insurers received substantial internal capital contributions from other entities in their group and decreased the internal shareholder dividends paid during the financial crisis. Panel data estimates indicate that, on average, a dollar decrease in net income when net income is negative is associated with a $0.32 increase in capital contributions from other entities in the group, and that a dollar increase in net income when net income is positive is associated with a $0.56 increase in the amount of internal shareholder dividends paid by the insurer to other entities in the group. Also, insurers with low (high) risk-based capital ratios receive more (less) internal capital contributions than other insurers. While the sensitivity of internal capital movements to performance and capitalization is concentrated in groups with a large number of affiliates, insurers in these groups do not on average, holding other factors constant, have lower capital or lower liquidity ratios than insurers in groups with less active internal capital markets.
Download or read book The Economics Regulation and Systemic Risk of Insurance Markets written by Felix Hufeld and published by Oxford University Press. This book was released on 2017 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book brings together academics, regulators, and industry experts to provide a multifaceted array of research and perspectives on insurance, its role and functioning, and the potential systemic risk it could create.
Download or read book On the Bankruptcy Risk of Insurance Companies written by École de management (Lyon) and published by . This book was released on 2008 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Risk Management for Insurers written by and published by . This book was released on 2015 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The introduction of Solvency II will drastically redesign the supervisory rules for regulatory capital for insurance companies. The insurance industry is therefore in desperate need of an up-to-date risk management book which contains a comprehensive exploration of Solvency II before implementation begins. The resilience of risk management systems in anticipation of Solvency II must be ensured. This updated accessible reference for the whole insurance industry that newly includes: i) More detailed discussion of Solvency II, with its three pillars examined separately; ii) the latest technical guidance from the European Insurance and Occupational Pensions Authority and the European Commission; iii) the impact of risk governance and risk culture; iv) an up-to-date overview of Basel III; and v) the significance of the International Financial Reporting Standards.
Download or read book Insolvency and Solidity of Insurance Companies written by Thomas A. Harnett and published by . This book was released on 1987 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Insurance Economics written by Peter Zweifel and published by Springer Science & Business Media. This book was released on 2012-02-24 with total page 461 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Winner of the 2014 Kulp-Wright Book Award Presented by the American Risk and Insurance Association". More information can be found here: http://www.aria.org/awards/bookawards.htm Insurance Economics brings together the economic analysis of decision making under risk, risk management and demand for insurance by individuals and corporations, objectives pursued and management tools used by insurance companies, the regulation of insurance, and the division of labor between private and social insurance. Appropriete both for advanced undergraduate and graduate students of economics, management, and finance, this text provides the background required to understand current research. Predictions derived from theoretical argument are not only stated but confronted with empirical evidence. Throughout the book, conclusions summarize results, helping readers to check their knowledge and understanding. Issues discussed include paradoxa in decision making under risk, selection of favorable risks by insurers, the possibility of a "death spiral" in insurance markets, and future challenges such as re-regulation in the wake of the 2007-09 financial crisis and the increasing availability of generic information.
Download or read book Risk Management Issues in Insurance written by Martin Bird and published by A&C Black. This book was released on 2013-09-26 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis of 2008 had little impact on the insurance industry globally, unlike the solvency issues within other financial sectors. This title looks at the major risk concerns within insurance and how the industry as a whole deals with potential threats to its business in the short, medium, and long term. It will demystify how insurers cope with liquidity risk, counterparty risk, tail-event risk (catastrophe), longevity risk, and the impact of climate change.
Download or read book Law and Practice of Life Insurance Company Insolvency written by David M. Spector and published by Section of Tort & Insurance Practice Law. This book was released on 1993 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Principles of Risk Management and Insurance written by George E. Rejda and published by Prentice Hall. This book was released on 2005 with total page 764 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ninth edition of 'Principles of Risk Management and Insurance' is fully revised to provide current insurance information. It covers concepts of risk management, legal principles, property and liability insurance, life and health insurance, employee benefits, social insurance, and functional and financial operations of insurers.
Download or read book Insurance Firms Capital Adjustment Profitability and Insolvency Risk Under Underwriting Cycles written by Alaa Guidara and published by . This book was released on 2015 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: For insurance firms, underwriting and investment strategies are defined as the dollar weights allocated to underwriting activities (direct premium, net reinsurance, etc.) and the investment of assets respectively. Using a sample of 83 Canadian property-liability insurance companies for 1996 to 2010, we first examine the impact of underwriting and investment strategies on both the level and speed of insurers' capital adjustment. Then, we investigate how these factors affect the solvency and profitability of Canadian property and casualty insurers. We find that the need to use retained earnings that have been accumulated in soft markets forces insurers to increase their profitability to withstand upcoming hard market conditions, triggering a new stage of the insurance cycle. In addition, we show that, in hard markets, when insurers are reluctant to take on new risk and when market power increases due to higher concentration, not only does the capital level decrease but so do profitability and solvency. Our observations, while suggesting the need for greater regulatory vigilance in hard markets, might support a through-the-cycle approach to monitoring capital adequacy based on the insurance cycle.
Download or read book The Nature and Dynamics of Organizational Capabilities written by Giovanni Dosi and published by OUP Oxford. This book was released on 2001-11-29 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, the editors and a team of distinguished international contributors analyse the nature of organizational capabilities–how organizations do things, use their knowledge base, and diffuse that knowledge in a competitive environment. Dosi is the author and editor of numerous books including Technology, Organization, and Competitiveness (OUP, 1998). He is also one of the editors of the journal Industrial and Corporate Change published by Oxford University Press. Nelson and Winter are recognized as leading proponents of evolutionary perspectives in economics and management. The book includes chapters from David Teece, Keith Pavitt, Benjamin Coriat, and Richard Florida amongst others.
Download or read book On the Bankruptcy Risk of Insurance Companies written by Olivier Le Courtois and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fall of AIG is another confirmation that the insurance business is not immune to bankruptcy. Contrary to the actuarial literature which postulates that insurance firms can survive forever, we believe that this is not the case, and that a realistic and business-oriented risk management approach needs to be designed in order to prevent the actual, finite-time, bankruptcy of insurance companies. In this article we model the surplus process of an insurance firm firstly by a stable Lévy process, secondly by a double exponential compound Poisson process. We compute finite-time survival and bankruptcy probabilities under such hypotheses. To achieve this, we make use of the Wiener-Hopf factorization and compute bankruptcy formulas written in terms of inverse Laplace transforms. The Abate and Whitt, and Gaver-Stehfest algorithms are used to obtain numerical estimations.
Download or read book Insurance Economics written by Peter Zweifel and published by Springer Nature. This book was released on 2021-10-05 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: Insurance Economics brings together the economic analysis of decision making under risk, risk management and demand for insurance among individuals and corporations, objectives pursued and management tools used by insurance companies, the regulation of insurance, and the division of labor between private and social insurance. Appropriate both for advanced undergraduate and graduate students of economics, management, and finance, this text provides the background required to understand current research. Predictions derived from theoretical arguments are not merely stated, but also related to empirical evidence. Throughout the book, conclusions summarize key results, helping readers to check their knowledge and comprehension. Issues discussed include paradoxes in decision making under risk and attempts at their resolution, moral hazard and adverse selection including the possibility of a “death spiral”, and future challenges to both private and social insurance such as globalization and the availability of genetic information. This second edition has been extensively revised. Most importantly, substantial content has been added to represent the evolution of risk-related research. A new chapter, Insurance Demand II: Nontraditional Approaches, provides a timely addition in view of recent developments in risk theory and insurance. Previous discussions of Enterprise Risk Management, long-term care insurance, adverse selection, and moral hazard have all been updated. In an effort to expand the global reach of the text, evidence and research from the U.S. and China have also been added.
Download or read book Policy Issues in Insurance written by and published by . This book was released on 1996 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Three studies dealing respectively with the taxation of life insurance products, insurers' insolvency laws and the regulation of investment policies in OECD countries.
