Insurance and reinsurance Research Papers (original) (raw)

This Handbook / Guidance Note has been prepared to identify and flag issues a prudent underwriter ought to consider and evaluate relating to the steel industry risk selection, determination and calculation of loss estimates when deciding... more

- by Kveng Hong Kao
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- Business, Marketing, Financial Markets, Insurance and reinsurance

It is now well known that the world community must share the risks and hazards deriving from climate change and, more generally, from the environment. The fact that just a few months ago, at the end of summer 2019, the European Bank for reconstruction and development (EBRD), issued the first World's first dedicated climate resilience bond confirms the thesis according to which financial, social and economic instruments are always most necessary for the development of society and to avoid that natural hazards can, as occurred in the past, cause extremely heavy damages with negative repercussions on every single area of a community. Starting from the characteristics of resilience bonds and reinsurance, the paper seeks to highlight the potential advantages that would derive from a systematic application of recursive contractual instruments (smart contracts). The authors focused on the study of the projection of financial and quantitative data of resilience and catastrophe bonds on ...

Lucrarea „Controlul în asigurări” constituie o contribuţie notabilă a autorului, Dr. BOGDAN Manole Decebal, la frontul de idei, opinii şi soluţii privind perfecţionarea funcţionării pieţei asigurărilor. Implicat fiind, ca practician, în activitatea de control a uneia dintre societăţile de asigurare aflate în tot pe piaţa asigurărilor a găsit de cuviinţă să fructifice propria experienţă prin doctoratul pe care l-a pregătit şi la un nivel bine apreciat de toţi cei implicaţi în derularea şi finalizarea lui.
Căile şi tehnicile prin care fiecare operator al pieţei de asigurare îşi promovează interesele sunt diverse. Evident, asigurătorii reprezentaţi de societăţile de asigurare prin asumarea prestaţiei de protecţie de riscuri nu renunţă la principiul de bază pe care se fondează activitatea lor – profitul. Asiguraţii, pe de altă parte, solicită / acceptă transferul riscurilor pe care nu le pot reţine, cu condiţia ca transferul de risc să fie eficient din punct de vedere financiar (pierderea probabilă să devanseze costul asigurării). Autoritatea statală este interesată ca riscurile ce pot afecta bunurile, activităţile economice şi sociale, viaţa şi integritatea persoanelor să fie gestionate pe baza unor raporturi corecte între părţi. Iată de ce controlul constituie o componentă majoră a bunei funcţionări a pieţei asigurărilor.
Lucrarea se structurează în patru capitole, abordând tematic: 1.Piaţa asigurărilor – areal de manifestare a controlului; 2.Controlul – pârghie de reglare în mecanismul financiar al societăţilor de asigurare; 3.Frauda în asigurări; 4.Perfecţionarea controlului în scopul prevenirii fraudelor în asigurări.
Aportul autorului se relevă substanţial şi elevat, prin modul în care se identifică arealul controlului în asigurări; prin argumentele cu care analizează, decelează şi susţine controlul ca pârghie de reglare în mecanismul financiar al societăţilor de asigurare; prin evidenţierea problematicii fraudelor, în plan teoretic şi practic, ca şi prin formularea şi argumentarea unor soluţii şi direcţii de perfecţionare a controlului în asigurări.
Bine documentată în plan bibliografic şi corect ilustrată şi argumentată în plan practic, pe parcursul a 215 pagini, lucrarea „Controlul în asigurări” se adresează deopotrivă tuturor acelora care sunt interesaţi de mecanismele de funcţionare a pieţei asigurărilor, de tehnicile de organizare şi realizare a controlului eficient, de problematica identificării şi prevenirii fraudelor în asigurări, şi nu în ultimul rând de diversitatea şi complexitatea cazurilor de fraudă constatate. (Prof. Univ. Dr. Lazăr Cistelecan).

This Handbook | Guidance Note has been prepared to identify and flag issues a prudent Underwriter and Risk Engineer ought to consider and evaluate relating to industries involving Renewable Energy - risk selection, determination and... more

- by Didier L Schütz
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- Renewable Energy, Risk Management, RISK MANAGEMENT (Engineering), Nuclear Energy

Essentials of a Valid Insurance Contract,Difference between a Wager and an Insurance Contract , Rights of the Insured as a Consumer, Liability of Insurer on the Error of Agent , Circumstances under which an Insurance Contract may be... more

- by Valentine Wakoko
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- Insurance Law, Health insurance, Risk Management, Insurance and reinsurance

“Wood Processing, Pulp & Paper Industry” is the third handbook of a “trilogy” about heavy industry.
This Handbook has been prepared to identify and flag issues a prudent underwriter ought to consider and evaluate relating to the wood processing, pulp & paper industry risk selection, determination and calculation of loss estimates when deciding whether to accept a risk and, if so, on what terms.
The main processes of wood, pulp & paper and related special hazards are described.
The supply chain aspects are also addressed considering the process flow between the different units involved in the wood, pulp & paper business (i.e. interdependencies, CBI, Service Interruption).
Standard recommendations based on recognized international standards and good practices are proposed.
Many thanks to the following people and organizations for their invaluable and extensive contributions:
• ARAUCO Chile - Chilean wood pulp, engineered wood and forestry company
• FM Global - Factory Mutual Insurance Company
• Nicole Jamieson, Conference Interpreter (AIIC)
• Franck Orset (FPO), Loss Prevention Engineer – drawings and more

In this thesis, it was aimed to find a relationship between reinsurance cost which is the money paid by the insurance company to share the risk of insurance contract and financial and technical ratios which are good monitoring tools for insurance companies. This thesis was written in the hope of giving an idea about reinsurance. The relationship between reinsurance cost and financial and technical ratios was established and panel data regression was performed to obtain an empirical result. The data obtained from the official website of the IAT was used in this study. This data includes nine years of the total 27 non-life companies (2009 - 2017). Hypotheses have been tested to find the determinants of the reinsurance cost.

- by Burak Alan
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- Insurance and reinsurance, Insurance, Reinsurance, Financial Ratios

Natural catastrophes and insurance (in Portuguese).

Reinsurance is understood to be that practice where an original insurer, for a definite premium, contracts with another insurer (or insurers) to carry a part or the whole of a risk assumed by the original insurer. By insurers we mean all persons, partnerships, corporations, associations and societies, associations operating as Lloyd's, inter-insurers or individual underwriters authorized by law to make contracts of insurance.

- by Solomon Eze
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- Risk Management and Insurance, Risk Management, Nigeria, Insurance and reinsurance

This Handbook / Guidance Note has been prepared to identify and flag issues a prudent underwriter ought to consider and evaluate relating to the aluminum industry risk selection, determination and calculation of loss estimates when... more

This chapter relates the history of the earthquake and fire of San Francisco in 1906 through the perspective of the (re)insurance industry, namely the Swiss Reinsurance Company (SRC). It focuses on the power struggle (seen as a conflict of visibility) between the three major stakeholders, the international group of reinsurers, the international fire insurance companies and the San Franciscan policy holders. The chapter concludes with the (tentative) finding of a peculiar US “culture of insurance”.

- by Eleonora Rohland
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- Cultural History, Economic History, Historical Anthropology, Disaster Studies

Over the last five years, the large use of combustible-insulated sandwich panels, especially in food industries, have resulted in severe fire losses. Insurers are now aware that the presence of these sandwich panels constitute a big fire risk in any type of industry. As market awareness has increased, insurers are now declining such risks or charging an inflated premium and as a consequence the capacity for such risks has shrunkdramatically. If the technical conditions do not improve, this market is likely to becomerestricted to a handful of highly sophisticated insurers who are focusing on prevention. This problem has led us to publish the current Newsletter, which aims to give a round-up of the insurance issues related to the various types of panels and thermal barriers, activeprotection and prevention, as well as examples of various underwriting practices. We areconvinced that with an increased knowledge and understanding of potential hazards it is possible to underwrite sandwich panels to a greater level of comfort, but only under bothadequate pricing and excellent risk management.

This is a summary of legislations in the Nigerian Insurance Industry. This paper did not delve into other related areas of the industry, rather a strict adherence of the various Acts and Decrees since the evolution of the insurance business in Nigeria was briefly itemized. This may not give a detail description on the subject, because the aim of this write up was to identify Insurance Acts and Decrees in Nigeria over time without analysis. However, if need be for a detail analysis of the sector, I would avail myself the opportunity to do so.

Au cours des cinq dernières années, l'utilisation très répandue, surtout dans l'industrie alimentaire, de panneaux sandwich isolés avec un matériau inflammable a eu pour conséquence que les dommages matériels dus à l'incendie sont devenus plus sévères. Les assureurs savent aujourd'hui pertinemment que la présence de ces panneaux sandwich constitue un important risque d'incendie dans toutes les branches industrielles. Cela étant désormais bien connu du marché, les assureurs refusent de couvrir ces risques ou augmentent le montant des primes d'où une réduction considérable de la prise en charge de ces risques. Si les conditions techniques n'évoluent pas, ce marché va probablement se limiter à une poignée d'assureurs très sophistiqués qui se concentrent sur la prévention. C'est ce problème qui nous a conduits à publier la présente note technique qui vise à faire un tour d'horizon des problèmes d'assurance liés aux différents types de panneaux et de barrières thermiques, de la protection et de la prévention actives, et qui donne des exemples des différentes pratiques en matière d'assurance. Nous sommes convaincus qu'avec une meilleure connaissance et une meilleure compréhension des risques potentiels, il est possible d'assurer les panneaux sandwich à un niveau plus confortable mais uniquement à condition de pratiquer des tarifications appropriées et une excellente gestion de risque. Vos correspondants SCOR habituels seront heureux de vous fournir toutes les informations complémentaires que vous souhaitez, en matière de tarification, d'analyse de risque, de prévention, d'évaluation du Sinistre Maximum Possible (SMP), ainsi que toutes autres références techniques.

This Handbook | Guidance Note has been prepared to identify and flag issues a prudent Underwriter and Risk Engineer ought to consider and evaluate relating to industries involving Embankment Dams - risk selection, determination and... more

This Handbook | Guidance Note has been prepared to identify and flag issues a prudent Underwriter and Risk Engineer ought to consider and evaluate relating to industries involving Embankment Dams - risk selection, determination and calculation of loss estimates - when determining whether to accept a risk and, if so, on what terms.

This paper studies fishing in Newfoundland during the second half of the sixteenth century. It analyses 415 maritime insurance contracts, all of which were registered at the Burgos Consulate, which was then one of the major insurance centres in Spain. We analyse the main characteristics of the journeys undertaken: price, danger, function, routes, origin of ships and sailors, etc. Furthermore, the surviving documentation (10,397 contracts) also allows us to reconstruct 4,372 maritime expeditions between 1565 and 1619. These data have allowed us to observe that the masters, owners and sailors who undertook fi shing expeditions to Newfoundland also engaged in international trade. Fishing and trade were complementary activities and ships did not specialise in one or the other. In the sixteenth century, the Spanish, Portuguese and French fleets were very versatile and sought to diversify their activities and, thereby, reduce risk.

- by Hilario Casado Alonso
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- Economic History, Naval History, Fisheries, Risk Management

A concise, but at the same time in depth analysis of EU Trademark Law, with many court cases discussed and explained.

A concise, but at the same time in depth description of trademark law in Greece with many court cases discussed and analysed.

EU-US bilateral agreement on prudential measures regarding insurance and reinsurance The EU-US agreement on insurance and reinsurance was signed in September 2017. It aims at eliminating some key trade barriers in the sector, in particular collateral and local presence requirements. The agreement also tackles the issue of supervisory authority and exchange of information. The European Parliament is due to vote on giving its consent to the Council for the conclusion of the agreement during its February II plenary session.

- by Laura Puccio
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- International Trade, Insurance Law, Insurance and reinsurance, Trade Policy

Gas flaring poses significant risks to health, safety and the environment. Although significant attentions have been given to the subject over the years, however, the increasing challenges especially in view of climate change risks prompts a serious urgency to examine the way forward. The nature of impacts from climate risk depends on the intensities of extremity in view of resources management and in consideration of the exposure and vulnerability of human populations and properties. This study through a review of existing literature in the field reveals paradoxical evidence in the management of climate risk especially as attempts to eliminate such risk and its impact ultimately create another risk (risk homeostasis). In this context, the research found that the level of vulnerability of human populations to the health implications of gas flaring depends significantly on the proximity of the human receptor to the flaring stations. Following a critical appraisal of the activities of oil and gas companies in Nigeria, the result suggests that climate risks might have caused much damage than was previously imagined. Therefore, we argue that promoting effective techniques on how to practically live with climate risks such as adaptive environmental management will help policymakers and practitioners’ particularly in Nigeria and indeed in other parts of the world subjected to the impacts of gas flaring, to sustainably tackle climate risks.

- by OLUWASOYE MAFIMISEBI and +1
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- Climate Change, Risk and Vulnerability, Risk communication, Emergency Management

A wide variety of construction projects may be damaged by snow, ice, extreme cold, heavy seas, strong winds, hurricanes, typhoons, tornadoes, torrential rain, flooding or wildfires /bushfires. Some weather risks are obvious and precautions taken against damage as a matter of course, whilst others may surprise those managing construction sites.
Since a site may be particularly vulnerable to a certain type of weather damage for only a limited period it may be tempting to take no special precautions and hope that an adverse weather event does not happen until the period of vulnerability has passed. Construction best practice however is based upon risk awareness and the implementation of suitable
precautions to minimise the risk of damage as a result of damaging events during the life of a project.
Insurance policies include special clauses that are tailored to specific classes and addressed to the insured to incentivise contractors to assess risks and undertake construction tasks progressively rather than finishing one construction task (such as trench excavation) before moving to the next (pipe or cable laying and backfilling).
Making preparations for adverse weather is a sensible risk management activity and this paper identifies tasks for each type of weather considered. It also cites references where further information can be obtained.
Climate change is likely to make adverse weather more intense and unpredictable and heighten the need to prepare for the worst if losses are to be minimised.

New Perspectives from Financial Service Leaders on Longevity

- by Luca Tres
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- Capital Markets, Insurance and reinsurance, Longevity, Life Insurance

Through the lens of the Swiss Reinsurance Company’s (today Swiss Re) 19th century correspondence the Swedish and international (re-)insurance industry’s risk management after the devastating fire of Sundsvall, Sweden, on June 25, 1888, unfolds. The article focuses on the Swiss Reinsurance Company’s post disaster ‘risk-shaping’ and the formation of reinsurance lobby-groups in the aftermath of the disaster. It argues that even the insurance industry’s concept of ‘objective risk’ is not static but fluid and open to negotiation within the insurance system. Since the insurance industry works on the interface between the natural and the built environment it can influence directly how societies interact with nature. The article argues furthermore, that perceiving fire merely as a man-made hazard without considering its ‘natural’ context falls short of an accurate analysis, in particular concerning ‘catastrophic loss’ (i.e. large-scale loss) affecting (re-)insurers geographical risk distribution.

- by Eleonora Rohland
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- Business, History, Economic History, Economics
- by Janet Roitman and +1
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- Insurance and reinsurance, Private Equity, Social Studies of Finance, Risk Transfer

This paper investigates the scales and temporalities through which climate change impacts may be rendered into socio-ecological fixes for crises of overaccumulation within the (re)insurance industry. The property insurance and catastrophe reinsurance sectors are notorious for their cyclicity, with prices and returns oscillating dramatically between ‘‘soft’’ and ‘‘hard’’ markets. The problem of overaccummulation in soft market periods is often resolved by the destruction of reinsurers’ capital reserves through huge catastrophic losses. This is typically followed by the revision of catastrophe models and reestimation of exposed values, processes which absorb additional (re)insurance capital and provide technoscientific legitimacy for raising rates. Reframing climate change risk in terms of ecologically-sourced devaluation suggests that, rather than posing an immediate existential threat, in the short to medium term the uncertain impacts of global climate change might constitute a recurrent ‘‘catastrophic fix’’ for particular segments of financial capital. This highlights both the productivity of uncertainty about climate change impacts and the limits of presuming that the operations of the private insurance market can produce a built environment more adapted to climate change. Rather, the more likely outcome is splintering protectionism: a patchwork of high risk, high reward areas where insurance is available only to those with the ability to pay rising premiums, leaving the state to manage the retreat and relocation of less remunerative properties and populations.

When it comes to planning your family's financial future, it makes good sense to take every possible step to protect their standard of living. So if you've gone to all of the effort of putting the right policies in place, it would be a real shame if a sizable proportion ended up in the tax man's pockets. But this is unfortunately what often happens, with more than half a billion pounds every year being paid in inheritance tax (IHT) from life insurance policies. One solution you could consider to make sure this doesn't happen, is putting your policy into a trust. Taking out life insurance within a trust makes the policy exempt from IHT if you die as it places it outside of your estate.

Adam Robinson and Luca Tres explain the past, present and future of life
insurance securitisations

In this paper, the Dirac-Feynman path calculation approach is applied to analyse finite time ruin probability of a surplus process exposed to reinsurance by capital injections. Several reinsurance optimization problems on optimum insurance and reinsurance premium with respect to retention level are investigated and numerically illustrated. The retention level is chosen to decrease the finite time ruin probability and to guarantee that reinsurance premium covers an average of overall capital injections. All computations are based on Dirac-Feynman path calculation approach applied to the convolution type operators perturbed by Injection operator (shift type operator). In addition, the effect of the Injection operator on ruin probability is analysed.

- by Muhsin Tamturk
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- Optimization techniques, Insurance and reinsurance, Dirac Notation, Feynman Paths

"ARE CREDIT SCORES RELIABLE"? Credit Scoring, hasn't been around that long, but when evaluating risk, it is a tool that is used more frequently then most realized. However, the real question that should be asked is, Do Credit Scores... more

The literature on Anglo-South American trade during the first half of the 19th century has taken British exports for granted. There are no specific considerations of textile exports, which were the backbone of British trade to the continent. Accordingly, when explaining the growth of British exports, historians have paid tribute solely to economic developments in South America. Important developments taking place in Britain have long been neglected. This paper provides the first account of the impact that improvements in the packing of textiles to protect against seawater damages had on British exports to distant markets, focusing on the particular markets of Chile and the River Plate c.1810-1859.

- by Bob Swarup
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- Risk Management and Insurance, Finance, Economics, Macroeconomics

- by Liam Wren-Lewis
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- Disaster risk management, Insurance and reinsurance
- by Alberto Cevolini
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- Risk Management and Insurance, Social Theory, Decision Making, Sociology of Risk

This paper proposes to analyze the segments of national insurance and reinsurance activity which are directly connected to the circulation of goods by maritime transportation on an international scale. We herein formulate the hypothesis that such segments can be understood as belonging to an urban network of specialty financial services (quaternary or higher tertiary services of the economy) that orbit the productive spacial circuits and guarantee their uninterrupted operation on a local (national or regional) and global (international or interregional) scale, thereby associating to the regulation of the territory. The analysis comprises a brief historical, technical and normative, contextualization, as well as the identification of similar patterns found in other recent researches, which - associated to the patterns of location and spatial concentration of the management centres of the services herein studied - contribute to the discussion of the proposed subject.

- by Rita Barros
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- Regulation, Insurance and reinsurance, Financial Services, Territory

Abstract—Risk Analytics is important to quantify, manage and analyse risks from the manufacturing to the financial setting. In this paper, the data challenges in the three stages of the high-performance risk analytics pipeline, namely risk modelling, portfolio risk management and dynamic financial analysis is presented. Keywords-high-performance computing; risk analytics; risk modelling; risk management; data management

The support for data ingestion and data integration from multiple data sources for rapid loss estimation and visualisation is highly desirable in post-event catastrophe modelling systems. In this paper, the design and development of a distributed system for real-time estimation and visualisation of insured losses incurred due to earthquakes is presented. The system incorporates a model for estimating losses due to earthquakes in near real-time and a geo-browser for visualisation of hazard, exposure and loss data. Preliminary validation of the system is performed using as test cases six global earthquakes and their associated industry loss data. The key result is that the system can generate reasonable order of magnitude estimates with limited data.

The connection between the (re-)insurance industry and climate impact or variability may seem a little unusual from a business history point of view. However, in the recent debate about global climate change and the challenges it poses to risk management, the economist Nicholas Stern and the sociologist Anthony Giddens have stressed the importance of the insurance sector and the role it could play concerning mitigation and adaptation strategies to climate change. While Stern affirmatively suggests that “insurance provides another important mechanism through which market signals can drive adaptation”, and that “Insurance has a long history of driving risk management through pricing risk, providing incentives to reduce risk, and imposing risk-related terms on policies”, Giddens apprehensively cautions that withdrawal from risky insurance markets cannot be a solution, but that innovative ways of insuring natural catastrophe risks in particular must be thought of. Both views may provide an impulse for business historians in general and insurance historians in particular to reach across boundaries and increase investigation into the human-environment interface.

- by Eleonora Rohland
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- Business, Risk Management and Insurance, History, Economic History
- by Manuel Llorca-Jaña
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- Insurance and reinsurance, Marine Insurance Law

3La governance dell'Artificial Intelligence nel settore assicurativo tra principi etici, responsabilità del board e cultura aziendaleDiana Capone AbstractL’impiego dell’Artificial Intelligence (AI) nel settore finanziario e, in particolare, in quello assicurativo rappresenta un’importante opportunità per accrescere la capacità degli operatori di: soddisfare bisogni innovativi del mercato, produrre reddito e, contestualmente, favorire il benessere della società in generale. L’utilizzo dei nuovi strumenti di AI, se inconsapevole dei rischi legali, tecnici ed etici che ad essi si accompagnano, può, d’altro canto, compromettere la fiducia del mercato, accrescere discriminazioni e diseguaglianze, ostacolare l’inclusività nell’offerta. Il rispetto di principi etici, ben definiti ma nello stesso tempo flessibili e adattabili ai diversi contesti, è la chiave di volta per garantire uno sviluppo responsabile dell’AI. La valenza teoretica di tali principi va però tradotta in vita pratica, facendo leva sulla capacità delle imprese di auto-organizzarsi, adottando efficaci e consapevoli modelli di governo dell’AI. Con il presente lavoro, si propone l’utilizzo di un paradigma di governo, gestione e controllo dei rischi -ispirato a quello elaborato per il Misconduct Risk dal Financial Stability Board -che renda concreta l’applicazione di tali principi etici attraverso i tre fondamentali pilastri organizzativi dell’impresa: la governance societaria (comprensiva anche del sistema dei controlli), i processi interni e le politiche del personale, la cultura aziendale. L’adozione di tale modello di governo ha le potenzialità per assicurare un uso responsabile dell’AI, soprattutto se accompagnato dalla disclosure al mercato dei presidi adottati dall’impresa. Si suggerisce, infine, come ulteriore ambito di riflessione, la possibilità di includere la sostenibilità digitale –anche in termini di governo responsabile dell’AI -nell’ambito dei principi Environmental, Social, Governance (ESG), come strumento per rendere efficacemente azionabile il controllo del mercato.

- by Diana Capone
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- Artificial Intelligence, Legal Ethics, Insurance and reinsurance, Ethics and CSR

Over the last decades there have been significant fire losses (Property Damage/Business Interruption) associated with the use of insulated sandwich panels. As the frequency and severity of losses has been increasing, it has become necessary to mitigate the risks for building occupants and fire fighters, and to reduce property losses related to the use of insulated sandwich panels.