Journal of Risk and Insurance

This academic risk management and insurance journal provides research in industrial organization of insurance markets, management of risks in the private and public sectors, insurance regulation and more.

Articles from Vol. 71, No. 2, June

A Data-Analytic Method for Forecasting Next Record Catastrophe Loss
ABSTRACT We develop in this article a data-analytic method to forecast the severity of next record insured loss to property caused by natural catastrophic events. The method requires and employs the knowledge of an expert and accounts for uncertainty...
Age Discrimination in Employment Act Does Not Prevent Businesses from Offering Older Workers Better Retirement or Health Plan Than That Available to Younger Workers
General Dynamics Land Systems, Inc. v. Cline, 124 S. Ct. 1236, 157 L. Ed. 2d 1094, 2004 U.S. Lexis 1623 (U.S. Supreme Court--February 24, 2004) As the saying goes, youth is wasted on the young. But on the other hand, the law provides substantial...
Airline's Failure to Move Asthmatic Passenger Away from Smoke Causing His Death Is "Accident" within the Meaning of the Warsaw Convention
Olympic Airways v. Husain, 124 S. Ct. 1221, 157 L. Ed. 2d 1146, 2004 U.S. Lexis 1620 (U.S. Supreme Court--February 24, 2004) In December 1997, Dr. Abid Hanson took a trip with his family and friends from San Francisco to Athens and Cairo, flying...
An Introduction to Actuarial Mathematics
An Introduction to Actuarial Mathematics, by A. K. Gupta and T. Varga, 2002, Dordrect: Kluwer Academic Publishers In just a few chapters, the fundamentals of actuarial mathematics are covered in this book by Gupta and Varga. An introduction to financial...
Contracting Incentives and Compensation for Property-Liability Insurer Executives
ABSTRACT This article examines several hypotheses about the structure and level of compensation for 103 property-liability chief executive officers (CEOs) from 1995 through 1997. The greater the level of firm risk and the larger the firm, the greater...
Estate of Victim in Murder-for-Insurance Scheme Has Cause of Action against Life Insurer for Issuing Policy without Knowledge of CQV
Bajwa v. Metropolitan Life Insurance Co., 2004 Ill. LEXIS 5 (Illinois Supreme Court--January 23, 2004) In a strange case of litigation noire, the Illinois Supreme Court has found that plaintiff (the administrator of the deceased person insured under...
Georgia Statute Prohibiting Use of Arbitration Clauses in Insurance Agreements Not Preempted by Federal Arbitration Act Due to McCarran-Ferguson Act
McKnight v. Chicago Title Ins. Co., F.3d, 2004 U.S. App. LEXIS 1436 (U.S. Court of Appeals for the Eleventh Circuit--January 30, 2004) The United States Arbitration Act, 9 U.S.C. Sections 1-16 was originally enacted in 1926 but has become much more...
Incentives for Managing Accounting Information: Property-Liability Insurer Stock-Charter Conversions
ABSTRACT Incentives to manage accounting information are examined within 63 property-liability insurance company conversions from mutual ownership to common stock charter. In the conversion process, policyholders' embedded equity claims must be...
Injury to Building Caused by Negligent Soil Analysis May Constitute Occurrence under CGL That Is Not Precluded by Business Risk Exclusions or Similar Limitations on Coverage
American Family Mutual Ins. Co. v. West American Insurance Co., 673 N.W.2d 65 (Wisconsin Supreme Court--January 9, 2004) Construction defect litigation has been in something of a boom period during the past 15 years, a phenomenon of no small consternation...
Law and the Determinants of Property-Casualty Insurance
ABSTRACT This article examines the importance of legal rights and enforcement in influencing property-casualty insurance (PCI) consumption. We extend the existing literature by examining the role of legal factors in determining insurance density...
Martingale Approach for Moments of Discounted Aggregate Claims
ABSTRACT We examine the Laplace transform of the distribution of the shot noise process using the martingale. Applying the piecewise deterministic Markov processes theory and using the relationship between the shot noise process and the accumulated/discounted...
Smooth Extremal Models in Finance and Insurance
ABSTRACT This article describes smooth nonstationary generalized additive modeling for sample extremes, in which spline smoothers are incorporated into models for exceedances over high thresholds. We summarize the smoothing methodology as a new...
Strategy, Value, and Risk-The Real Options Approach
Strategy, Value, and Risk--The Real Options Approach, by Jamie Rogers, 2002, New York: Palgrave Macmillan In the insurance industry, there are many examples of options to expand and options to abandon. Insurance companies cannot afford to ignore...
Strategy, Value, and Risk-The Real Options Approach
Strategy, Value, and Risk-The Real Options Approach, by Jamie Rogers, 2002, New York: Palgrave MacmillanIn the insurance industry, there are many examples of options to expand and options to abandon. Insurance companies cannot afford to ignore such options....
Teenage Son of Drugstore Owner Not an "Insured" under Store's Insurance Policy; Policy's Uninsured Motorist Coverage Not Available When Son Hurt in ATV Accident
American Economy Insurance Co. v. Bogdahn, 2004 Okla. LEXIS 11 (Oklahoma Supreme Court--February 10, 2004) The Hillcrest Pharmacy has been a fixture in Woodward, Oklahoma since the 1960s. In 1990, it was sold to the Bogdahn family. The drugstore...
The ART of Risk Management: Alternative Risk Transfer, Capital Structure, and the Convergence of Insurance and Capital Markets
The ART of Risk Management: Alternative Risk Transfer, Capital Structure, and The Convergence of Insurance and Capital Markets, by Christopher Gulp, 2002, New York: John Wiley and SonsChristopher Culp's book The ART of Risk Management explains that ART...
The Demand for Insurance with an Upper Limit on Coverage
ABSTRACT The demand for insurance is examined when the indemnity schedule is subject to an upper limit. The optimal contract is shown to display full insurance above a deductible up to the cap. Some results derived in the standard model with no...
The Development and Regulation of Nonbank Financial Institutions
The Development and Regulation of Nonbank Financial Institutions, by Jeffrey Carmichael and Michael Pomerleano, March 2002, World Bank How important are nonbank financial institutions to the success of emerging economies? What role does regulation...