Nos derniers articles

"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.

The paper argues that seeing #riskmanagement as a question of defining the partnership between business and government is crucial to improving it rather than focusing solely on the amount of #regulation.Sometimes these partnerships are adversarial, as they can be with government regulation. Other times they are seemingly invisible, such as when society relies on private #insurance markets to manage risk.

It proposes policy changes to reduce the cost and improve the value of #autoinsurance in #canada. The study found that Canadians pay the highest premiums in the world for auto #insurance relative to GDP, with personal injury coverage being the most significant contributor to overall differences. The paper recommends product reforms and addressing #autorepair#fraud to increase consumer choice, reduce disputes, and provide better value.

Examines the relationship between #crime and #insurance, with a focus on the role of #governance, #riskassessment and #riskmanagement, #crimeprevention, #securitytechnology, #behavioraleconomics, #theft, #kidnap and #hijack for ransom, #fraud, and #ransomware. It analyzes five case studies to identify a co-evolutionary process in which #insurers collaborate with insureds, governments, and #thirdparty to #mitigaterisk, particularly when criminal innovations destabilize the #insurancemarket.