"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."
#ethical dilemmas and #regulatory considerations associated with #ai and #chatgpt adoption in financial analysis are ... addressed, emphasizing the need for responsible AI usage and human oversight in critical #financial judgments.
"This paper uses the failures of #siliconvalleybank and #signaturebank in early March 2023 to argue for needed reforms in #depositinsurance and in #bank#regulation more generally."
The paper highlights the importance of #thirdparty #transparency in the #riskmitigation of #supplychain #climaterisks.
These papers examine the role of #collectivebargaining and #governmentpolicy in shaping strategies to deploy new #digital and #ai-based technologies at work. The authors argue that efforts to better #regulate the use of AI and #algorithms at work are likely to be most effective when underpinned by social dialogue and collective #labourrights. The articles suggest specific lessons for #unions and policymakers seeking to develop broader strategies to engage with AI and #digitalisation at work.
"In this article we analyze a sample of international #insurers between 2013 and 2022, and show that the purchase of #reinsurance is negatively related to their #sustainability, as measured by #esg scores. Furthermore, we illustrate that insurers' losses decrease with higher levels of reinsurance and sustainability. However, while reinsurance brings down insurers' profitability, sound ESG scores are related to lower expenses and increasing profitability. Our interpretation is that strong ESG profiles may serve as a cheaper alternative to reinsurance for #riskmitigation."
This paper discusses the efficiency, effectiveness, and costs of #denmark's #antimoneylaundering (#aml) #compliance standards. Although the country has caught up with international standards, the current global AML compliance system is ineffective in deterring #moneylaundering by professional actors. The system imposes significant costs on #banks and society, while spending too much time on minor infractions. To improve the system, the author argues for a #risk-based approach that automates large portions of the compliance process and allows compliance staff to focus on investigations.
"The convex combination of the distortion #risk #measurement is constructed from the perspectives of #insurer and #reinsurer."
"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."
#riskmanagement#geopoliticalrisk"The frequency of economic and #financialcrises is not increasing, but #politicalcrises can make #economiccrises more likely. The paper suggests that feedback between non-economic and economic crises can be important, but there is no comparable evidence for #climaterisk."