Nos derniers articles

This study examines the #riskallocation problem in distributed #insurance using #blockchaintechnology, considering different charging methods. Through #gametheory analysis, the research explores the #pareto optimal risk allocation method. The findings reveal that when charges occur during insurance signing, risk is proportionally distributed based on policyholders' #riskaversion coefficient. However, if the platform provider charges a fee proportional to the premium or actual risk, policyholders bear increased risk from others while their own risk is reduced, leading to decreased overall utility. These conclusions provide valuable insights for #blockchain insurance companies regarding user #riskmanagement and allocation.

This paper claims to contribute to the understanding of #peertopeer, #decentralized distributed #insurance as a viable alternative to traditional insurance models, offering potential solutions to address market consolidation and enhance #financialinclusion through #risksharing. Further exploration and empirical studies are necessary to validate the viability and long-term implications of this emerging paradigm in the #insuranceindustry.

Key findings:1. #masstort plaintiff lawyers do not primarily base their litigation and settlement strategy on defendants' #liabilityinsurance, except in cases of insolvency.2. Despite #insurance policies assigning control over defense to the #insurer, mass tort defendants typically retain control over their defense, even when they recover under these policies.3. Mass tort defendants usually use their own funds to settle #claims, seeking indemnification from liability insurers, if available, at a later stage.4. Many mass tort plaintiff law firms rely on non-recourse litigation funding, reminiscent of early forms of commercial insurance like bottomry and respondentia. An emerging insurance market is reducing the cost of this funding and may eventually replace it.

"We show that classical #insurance #models based on some compound distributions can well predict #information #leakage by #cyberincidents with reducing the computational cost thanks to the model’s simplicity."

"Observed #competitive market #profitmargins in #insurance have generally exceeded what is considered fair being the #capm adjustment for risky loss cashflows. This potential ‘missing link’ has attempted to be explained by either #risk, #capital or frictions that are unrecognised by the theory. It is proposed here that the missing link instead relates to the consumption of insurance services for which a fair profit margin arises under marginal utility principles."

"The research findings revealed that still people do not pay due importance to the #lifeinsurance policy, they prefer other #financialialinstruments, such as #bank deposits, #mutualfunds, the #stockmarket, and some others... The buyers treated life #insurance as an #investment and #taxsavings instrument instead of a #risk coverage instrument."

#insurance#climaterisk"This paper discusses the relationship between the financial constraints faced by infrastructure assets due to #floodrisk exposure and their ability to finance adaptation to such #risks through internal resources. #risktransfer mechanisms such as #floodinsurance were shown to be a consistent channel leading to increases in #riskreduction through adaptation. "

"… we find that the #uncertainty premium is negatively correlated with #riskaversion at all sizes and #probabilities of #risks. This leads to a selection effect: individuals who purchase #insurance are not necessarily the most risk averse. We show that the resulting #misallocation of insurance leads to large #welfare#losses."

This paper explores the #reputationalrisk associated with #esg investments and provides a formal theoretical valuation system for ESG reputation. The authors argue that ESG criteria adoption has multiple positive dimensions and outcomes, but the analysis of the #risks related to #sustainability is uncommon. They model ESG reputational risk using paradigms of #behaviouralfinance, defining it by subjective probabilities framed in a #probability function based on potential trustees' preferences. The paper highlights the need for accurate evaluation of reputational risks related to ESG investments by firms and other institutions, including #insurance companies and #pensionfunds.

This paper examines the Bowley solution in the context of #insurance contracts using the expected utility framework. Specifically, the paper analyzes a sequential game between a #policyholder and an #insurer, in which the policyholder selects the optimal #indemnity function and the insurer adjusts the pricing kernel to maximize expected #netprofit. The paper finds that the optimal safety loading factor increases with the policyholder's #riskaversion level and the #probability of zero loss. However, the paper also shows that the Bowley solution is #pareto dominated, meaning that both parties' interests can be further improved.