Managing The Insolvency Risk Of Insurance Companies

Author : J. David Cummins,Richard A. Derrig
Publisher : Springer Science & Business Media
Page : 334 pages
File Size : 41,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9789401138789

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Managing the Insolvency Risk of Insurance Companies by J. David Cummins,Richard A. Derrig Pdf

Two different applications have been considered, automobile claims from Massachusetts and health expenses from the Netherlands. We have fit 11 different distributions to these data. The distributions are conveniently nested within a single four parameter distribution, the generalized beta of the second type. This relationship facilitates analysis and comparisons. In both cases the GB2 provided the best fit and the Burr 3 is the best three parameter model. In the case of automobile claims, the flexibility of the GB2 provides a statistically siE;nificant improvement in fit over all other models. In the case of Dutch health expenses the improvement of the GB2 relative to several alternatives was not statistically significant. * The author appreciates the research assistance of Mark Bean, Young Yong Kim and Steve White. The data used were provided by Richard Derrig of The Massachusetts Automobile Rating and Accident Prevention Bureau and by Bob Van der Laan and The Silver Cross Foundation for the medical insurance claim data. 2~ REFERENCES Arnold, B. C. 1983. Pareto Distributions. Bartonsville: International Cooperative Publishing House. Cummins, J. D. and L. R. Freifelder. 1978. A comparative analysis of alternative maximum probable yearly aggregate loss estimators. Journal of Risk and Insurance 45:27-52. *Cummins, J. D., G. Dionne, and L. Maistre. 1987. Application of the GB2 family of distributions in collective risk theory. University of Pennsylvania: Mimeographed manuscript. Hogg, R. V. and S. A. Klugman. 1983. On the estimation of long tailed skewed distributions with actuarial applications.

Author : Nigel Davies,Richard Podpiera,Mr.Udaibir S. Das
Publisher : International Monetary Fund
Page : 45 pages
File Size : 55,7 Mb
Release : 2003-07-01
Category : Business & Economics
ISBN : 9781451856002

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Insurance and Issues in Financial Soundness by Nigel Davies,Richard Podpiera,Mr.Udaibir S. Das Pdf

This paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability. Building on this experience and the experience gained under the FSAP, the paper proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.

Author : Anonim
Publisher : Unknown
Page : 362 pages
File Size : 43,8 Mb
Release : 2015
Category : Insurance
ISBN : 178272222X

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Risk Management for Insurers by Anonim Pdf

"The introduction of Solvency II will drastically redesign the supervisory rules for regulatory capital for insurance companies. The insurance industry is therefore in desperate need of an up-to-date risk management book which contains a comprehensive exploration of Solvency II before implementation begins. The resilience of risk management systems in anticipation of Solvency II must be ensured. This updated accessible reference for the whole insurance industry that newly includes: i) More detailed discussion of Solvency II, with its three pillars examined separately; ii) the latest technical guidance from the European Insurance and Occupational Pensions Authority and the European Commission; iii) the impact of risk governance and risk culture; iv) an up-to-date overview of Basel III; and v) the significance of the International Financial Reporting Standards.

Author : Giovanni Dosi,Richard Nelson,Sidney Winter
Publisher : OUP Oxford
Page : 404 pages
File Size : 52,5 Mb
Release : 2001-11-29
Category : Business & Economics
ISBN : 9780191530227

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The Nature and Dynamics of Organizational Capabilities by Giovanni Dosi,Richard Nelson,Sidney Winter Pdf

In this book, the editors and a team of distinguished international contributors analyse the nature of organizational capabilities–how organizations do things, use their knowledge base, and diffuse that knowledge in a competitive environment. Dosi is the author and editor of numerous books including Technology, Organization, and Competitiveness (OUP, 1998). He is also one of the editors of the journal Industrial and Corporate Change published by Oxford University Press. Nelson and Winter are recognized as leading proponents of evolutionary perspectives in economics and management. The book includes chapters from David Teece, Keith Pavitt, Benjamin Coriat, and Richard Florida amongst others.

Author : J David Cummins,Anthony M Santomero
Publisher : Unknown
Page : 388 pages
File Size : 45,8 Mb
Release : 1999-12-01
Category : Electronic
ISBN : 1461550467

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Changes in the Life Insurance Industry by J David Cummins,Anthony M Santomero Pdf

Author : Guillaume Plantin,Jean-Charles Rochet
Publisher : Princeton University Press
Page : 112 pages
File Size : 51,6 Mb
Release : 2009-04-11
Category : Business & Economics
ISBN : 9781400827770

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When Insurers Go Bust by Guillaume Plantin,Jean-Charles Rochet Pdf

In the 1990s, large insurance companies failed in virtually every major market, prompting a fierce and ongoing debate about how to better protect policyholders. Drawing lessons from the failures of four insurance companies, When Insurers Go Bust dramatically advances this debate by arguing that the current approach to insurance regulation should be replaced with mechanisms that replicate the governance of non-financial firms. Rather than immediately addressing the minutiae of supervision, Guillaume Plantin and Jean-Charles Rochet first identify a fundamental economic rationale for supervising the solvency of insurance companies: policyholders are the "bankers" of insurance companies. But because policyholders are too dispersed to effectively monitor insurers, it might be efficient to delegate monitoring to an institution--a prudential authority. Applying recent developments in corporate finance theory and the economic theory of organizations, the authors describe in practical terms how such authorities could be created and given the incentives to behave exactly like bankers behave toward borrowers, as "tough" claimholders.

Author : Anonim
Publisher : OECD
Page : 98 pages
File Size : 54,5 Mb
Release : 2003-11-21
Category : Business & Economics
ISBN : UOM:39015061735422

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Policy Issues in Insurance Environmental Risks and Insurance by Anonim Pdf

From the increasing incidence of environmental pollution and soil contamination, to recurring natural disasters, the risks posed by the constant interaction between human activities and the environment are diverse, manifold and often catastrophic in their consequences. Therefore, the elaboration of effective risk-management plans, aimed at formulating viable response strategies, requires the contribution of all the economic actors involved: private parties, financial institutions, governments and international organizations. This report focuses on the role of insurance and reinsurance companies in the management of environmental risks - environmental pollution risk and natural catastrophe risk in particular. It discusses the issue of insurability of such risks, analyses the increasing risk of liability for environmental pollution and the underlying trends in the development of environmental liability regimes in OECD countries. It also presents an overview of the various environmental pollution insurance products and techniques developed in response to legal and factual evolutions. In addition, it describes the special features of natural catastrophe risks, the role of traditional insurance markets in the coverage of such perils, and alternative options of coverage, from governmental disaster schemes to new financial market instruments.

Author : Irwin T. Vanderhoof,Edward Altman
Publisher : Springer Science & Business Media
Page : 389 pages
File Size : 42,8 Mb
Release : 2013-04-17
Category : Business & Economics
ISBN : 9781475767322

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The Fair Value of Insurance Liabilities by Irwin T. Vanderhoof,Edward Altman Pdf

This book explores theoretical and practical implications of reflecting the fair value of liabilities for insurance companies. In addition, the contributions discuss the disclosure of these values to the financial and regulatory communities and auditing firms which are actually calculating this illusive but important variable. It combines contributions by distinguished practitioners from the insurance, accounting and finance fields, with those of prominent academics. One of the central themes of the collection is that adequate disclosure of the true economic value of insurance company liabilities is both possible and desirable. Wherever possible, the insurance valuation process is wedded with modern financial theory. For example, the use of option pricing theory is applied to insurance companies, where the true value of the firm's liabilities is a critical variable. Methods such as cash flow, earned profit and indirect discount are explored.

Author : James Lam
Publisher : John Wiley & Sons
Page : 432 pages
File Size : 54,8 Mb
Release : 2017-03-13
Category : Business & Economics
ISBN : 9781118235362

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Implementing Enterprise Risk Management by James Lam Pdf

A practical, real-world guide for implementing enterprise risk management (ERM) programs into your organization Enterprise risk management (ERM) is a complex yet critical issue that all companies must deal with in the twenty-first century. Failure to properly manage risk continues to plague corporations around the world. ERM empowers risk professionals to balance risks with rewards and balance people with processes. But to master the numerous aspects of enterprise risk management, you must integrate it into the culture and operations of the business. No one knows this better than risk management expert James Lam, and now, with Implementing Enterprise Risk Management: From Methods to Applications, he distills more than thirty years' worth of experience in the field to give risk professionals a clear understanding of how to implement an enterprise risk management program for every business. Offers valuable insights on solving real-world business problems using ERM Effectively addresses how to develop specific ERM tools Contains a significant number of case studies to help with practical implementation of an ERM program While Enterprise Risk Management: From Incentives to Controls, Second Edition focuses on the "what" of ERM, Implementing Enterprise Risk Management: From Methods to Applications will help you focus on the "how." Together, these two resources can help you meet the enterprise-wide risk management challenge head on—and succeed.

Author : The International Credit Insurance & Surety Association
Publisher : Anthem Press
Page : 195 pages
File Size : 41,5 Mb
Release : 2015-06-01
Category : Business & Economics
ISBN : 9781783084821

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A Guide to Trade Credit Insurance by The International Credit Insurance & Surety Association Pdf

‘A Guide to Trade Credit Insurance’ is a reference book on trade credit insurance, written from an international perspective. It is a compilation of contributions from various authors and reviewers drawn from ICISA member companies. The book provides an overview of the whole process regarding trade credit insurance, including the history of trade credit insurance, trade credit insurance providers, the underwriting process, premium calculation, claims handling, case studies and a glossary of terminology.

Author : Bo Green
Publisher : Springer Science & Business Media
Page : 380 pages
File Size : 42,7 Mb
Release : 2013-03-09
Category : Business & Economics
ISBN : 9789401729093

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Risk Behaviour and Risk Management in Business Life by Bo Green Pdf

Risk behaviour and risk management in business life influence a wide range of fields in which only a very limited amount of research has been undertaken. These topics have often been treated as if they were theoretically and practically isolated from other fields, the so called risk archipelago problem. What is actually needed is another focus, in which the problem of risk is treated as a central theme. The demand for interdisciplinary research means that there is a need for crossing scientific boundaries. In approaching risk problems from a holistic perspective there is also a parallel need for linking the scientific and the business worlds. Researchers must work closely together in concrete multidisciplinary research projects and in co-operation with the industrial world in seeking out and solving research problems of importance. This book contains selected and re-written papers, and key-note speeches presented in a risk-seminar that Stockholm University organised in June 1997. The seminar, in which 200 researchers and practitioners from 26 countries participated, was divided into four main topic areas: Risk Assessment and Credit Management, Psychology in Business Life, Risk Management in Small Firms and Law and Business Risk. In writing this book, the editor invited eight professors from four continents to assist him in introducing the reader to the different and scientific disciplines and in explaining the need for interdisciplinary, multidisciplinary and cross-disciplinary risk research projects. The book consists of eight chapters and the target groups are researchers, doctoral and master students at universities and business people working in the risk management area.

Author : Rod McQueen
Publisher : McClelland & Stewart Limited
Page : 320 pages
File Size : 51,8 Mb
Release : 1997-10-18
Category : Business & Economics
ISBN : 0771056389

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Who Killed Confederation Life? by Rod McQueen Pdf

When Confederation Life Insurance Co. was seized by regulators on August 11, 1994, it ranked as the fourth largest insurance company in Canada, and was among the top 30 in North America. With $19 billion (Cdn.) in assets, the company's collapse wiped out 4,400 jobs, threw into disarray owners of 250,000 policies and contracts in Canada, plus another 800,000 outside the country. It also severely damaged confidence in Canada's substantial insurance industry. In a no-holds-barred account of the debacle, financial journalist Rod McQueen documents how it all happened, and shows how Confederation Life's failure was due to the combined failure of the company and the larger public sector. Directors did not hold management sufficiently accountable, officers let things get out of hand, regulators were tardy, then threatened with too small a stick, auditors missed the big picture, politicians showed neither courage nor conviction, and, rather than help, industry representatives dithered. Any one individual among those six constituencies could have affected the course of the corporation's history sufficiently to prevent its collapse. In 1994 McQueen wrote a detailed three-part article in the "Financial Post about the Confederation Life scandal. Now, having extensively researched the history of the company, and having conducted over a hundred interviews, he has written a "whodunit" tale of Canada's biggest business story of the decade.

Author : Janis P. Sarra
Publisher : Carswell Legal Publications
Page : 756 pages
File Size : 40,5 Mb
Release : 2008
Category : Law
ISBN : 077981472X

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Annual Review of Insolvency Law by Janis P. Sarra Pdf

Author : René Doff
Publisher : Unknown
Page : 322 pages
File Size : 43,8 Mb
Release : 2011
Category : Insurance companies
ISBN : 1906348618

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Risk Management for Insurers by René Doff Pdf

This fully updated user-friendly second edition will quickly help you get to grips with risk management terms and techniques, and how they relate specifically to the insurance industry. It also demonstrates how Solvency II is already shaping the regulatory agenda and its likely impact on the insurance industry.

Author : Gregorio Impavido,Ian Tower
Publisher : International Monetary Fund
Page : 58 pages
File Size : 54,5 Mb
Release : 2009-07
Category : Business & Economics
ISBN : IND:30000111481895

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How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter by Gregorio Impavido,Ian Tower Pdf

We use a calibrated multi-sector DSGE model to analyze the likely impact of oil windfalls on the Ghanaian economy, under alternative fiscal and monetary policy responses. We distinguish between the short-run impact, associated with demand-related pressures, and the medium run impact on competitiveness and growth. The impact on inflation and the real exchange rate could be moderate, especially if the fiscal authorities smooth oil-related spending or increase public spending's import content. However, a policy mix that results in both a fiscal expansion and the simultaneous accumulation of the foreign currency proceeds from oil as international reserves to offset the real appreciation would raise demand pressures and crowd-out the private sector. In the medium term, the negative impact on competitiveness resulting from "Dutch Disease" effects could be small, provided public spending increases the stock of productive public capital. These findings highlight the role of different policy responses, and their interaction, for the macroeconomic impact of oil proceeds.