"#annuities, #longtermcareinsurance and #reversemortgages remain unpopular to manage #longevity, medical and housing price #risks after #retirement. We analyze low demand using a life-cycle model structurally estimated with a unique stated-preference survey experiment of #canadian households."
We define the degree of #banking integration in the #eurozone through different phases of the #economic cycle, from 2006 to 2020, with #complexnetworks and #clusteralgorithms … Regarding the nodes of the network, #germany yields the position of centrality in favor of #france.
The #covid19 #pandemic revealed shortcomings in #supplychainmanagement and highlighted the need for rebuilding #supplychains for #resilience to respond to #systemwide #disruptions. This study outlines an approach to rebuilding supply chains for resilience, integrating innovation in areas critical to supply chain management. The authors focus on three areas deemed foundational to #supplychainresilience: forecasting, #supplychainrisk #riskmanagement, and product design.
The #covid19 #pandemic challenged every aspect of business and forced organizations to shift into #crisismode. The pandemic re-exposed issues associated with #siloedthinking in #riskmanagement. For organizations with inadequate #erm policies, plans, or procedures, this is a crucial time to reflect on improving their ERM processes through the capture and transfer of Covid-related lessons. This study explores how concept #riskmapping can be a valuable tool to structure lessons learned capture, ensure risk information is considered, and focus on ERM practice improvements.
This study examines the use of #artificialintelligence (#ai) and #bigdata data analytics by #insurers in #belgium for segmentation purposes to determine #claims#probability for prospective policyholders. The implementation of AI and big data analytics can benefit insurers by increasing the accuracy of #riskassessment. However, pervasive segmentation can have negative implications and potentially harm policyholders if their risk is incorrectly calculated. Existing restrictions in #insurance#regulations fall short of protecting policyholders from inaccuracies in risk assessments, potentially resulting in incorrect #premiums or conditions.
"We assess the ability of #GPT … to serve as a financial robo-advisor for the masses, by combining a financial literacy test and an advice-utilization task (the Judge-Advisor System). #davinci and #chatgpt (variants of GPT) score 58% and 67% on the #financialliteracy literacy test, respectively, compared to a baseline of 31%. However, people overestimated GPT's performance (79.3%), and in a savings dilemma, they relied heavily on advice from GPT (WOA = 0.65). Lower subjective financial knowledge increased advice-taking. We discuss the risk of overreliance on current large #languagemodels models and how their utility to laypeople may change."
"We consider two possible approaches to the problem of incorporating explicit general (i.e. economic) #inflation in the #non_life [#insurance] #claims reserve estimates and in corresponding reserve SCR, defined - as in #solvencyii - under the one year view. The #actuarial approach provides a simplified solution to the problem, obtained under the assumption of deterministic #interestrates and absence of inflation risk premia."
The study finds that entrepreneurs view #riskmanagement as a mindset focused on asset preservation, competitive advantages, and local talent development. Risk management practices in #smes are mainly informal yet deliberate and fully integrated into the organization's fabric. In-house #accountants help entrepreneurs with #erm, while external accountants do not systematically contribute to risk management. The study contributes to both the theory and practice of risk management by providing empirical insights into SME owners' perceptions, sense-making, and risk management practices.
"In the [#riskmanagement] context of #capitalallocation principles for (not necessarily coherent) #riskmeasures, we derive - under mild conditions - some representation results as ``collapse to the mean'' in a generalized sense. This approach is related to the well-known Gradient allocation and allows to extend a result of Kalkbrener (Theorem 4.3 in \cite{kalkbr05}) to a non-differentiable setting as well as to more general capital allocation rules and risk measures."
"... this paper argues that recent #eu#regulatory reform to #corporategovernance, as a means to improve #financialstability is a large-scale intellectual fallacy. Absent EU-wide structural reform to control #risktaking in large and complex #financialinstitutions, the stability of the EU #bankingsector will remain compromised. Smaller and less interconnected #banks will both improve bank corporate governance and create a safer and more stable #financialsector."