Nos derniers articles

“... insurers’ asset allocation and product pricing decisions are more connected than previously thought.”

This study analyzes the financial impact of Corporate Social Irresponsibility (CSI) events on European banks using a dataset of 11,832 reputational shocks from 2007-2023. Results show significant negative stock returns and increased volatility following CSI media coverage, with proactive ESG engagement mitigating these effects.

The theory of regulatory compliance has enabled the development of differential monitoring, emphasizing tailored, impactful regulations over uniform approaches, proving crucial in risk assessment and key indicators.

The paper empirically analyzes the ECB's climate-risk-related supervisory efforts' impact on banks' climate risk exposure, management, and green finance activities. Using a difference-in-difference setup, it finds significant improvements in climate risk management and increased green finance among Significant Institutions under the Single Supervisory Mechanism since 2020.

This paper explores methods to measure and adjust for country risk, sovereign default risk, and equity risk premiums. The paper argues that a company's exposure to country risk should be based on its operations rather than incorporation location, affecting valuations of multinational corporations.

The significance of mortality modeling extends across multiple research areas, including life insurance valuation, longevity risk management, life-cycle hypothesis, and retirement income planning. A new vitality-based mortality modeling approach is introduced, addressing limitations in existing methods. This four-component framework analyzes individual vitality dynamics, defining mortality as vitality depletion. The model demonstrates versatility in estimation and analysis, with implications for actuarial problems and various research areas, offering an improved paradigm for mortality modeling.

Increasing climate risk has made insurance unaffordable or unavailable in many areas. A study on Australia's government-provided, mandatory reinsurance for cyclone damage shows it decreases home insurance premiums by 21% and increases availability by 11%. The policy reduces costs associated with correlated risks and boosts market competition.

Banking regulations encourage banks to invest in "risk-free" government bonds, affecting financial stability. This study reveals governments exploit this to increase fiscal flexibility. Zero-risk weighting of sovereign bonds lowers borrowing costs, promotes over-borrowing, and undermines fiscal rules.

“Effective regulation is cyclical, aligning with economic cycles, but it is counter to the laissez-faire approach. We demonstrate that simple leverage constraints can bring the decentralized economy close to the optimal allocation.”

This report uses UK fire statistics to model insurance claims for a company next year. It estimates the total sum of claims by modeling both the number and size of fires as random variables from statistical distributions. Monte Carlo simulations in R are used to predict the probability distribution of total claim costs.