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. 85, No. 2, June

Advantageous Selection, Moral Hazard, and Insurer Sorting on Risk in the U.S. Automobile Insurance Market
INTRODUCTION Empirical studies of insurance purchase decisions have demonstrated that consumers possess private information when purchasing, and their private information comes in multidimensional forms (e.g., Fang, Keane, and Silverman, 2008)....
Direction and Intensity of Risk Preference at the Third Order
INTRODUCTION In expected utility theory, higher-order risk preferences, such as prudence at the third order and temperance at the fourth, are becoming increasingly important in establishing comparative statics predictions for behavioral responses...
Directors' and Officers' Liability Insurance and Firm Value
We examine the effects of directors' and officers' liability insurance (hereafter referred to as "D&O insurance") on firm value. D&O insurance covers corporate directors and officers against claims arising from their activities as representatives...
Downside Risk Aversion and the Downside Risk Premium
INTRODUCTION Menezes, Geiss, and Tressler (1980, hereafter MGT) define increasing downside risk, and show that a downside risk-averse agent is characterized by the condition u"'(x) > 0. As their initial contribution, numerous attempts have been...
EDITOR's NOTE
There are two items that merit special attention in the June 2018 issue of the Journal of Risk and Insurance. The first is the Symposium on Choices Under Uncertainty: Beyond Risk Aversion that honors the memory of our recently-departed colleague Harris...
Health Insurance Benefit Mandates and Firm Size Distribution
INTRODUCTION The U.S. states have passed a large and rapidly increasing number of health insurance benefit mandates. Benefit mandates require health insurance plans to cover a specific treatment, condition, provider, or type of person (such as acupuncture,...
Individual Capability and Effort in Retirement Benefit Choice
INTRODUCTION Around the world, governments have been reducing public pensions in favor of private savings plans (OECD 2013). At the same time, defined benefit (DB) plans are being superseded by defined contribution (DC) arrangements (Bateman and Kingston,...
Multivariate Almost Stochastic Dominance
INTRODUCTION Often only partial information is available about a decision maker's utility function. Stochastic dominance (SD) was developed to provide a partial ranking of distributions of outcomes associated with potential actions in such circumstances....
On the Robustness of Higher Order Risk Preferences
INTRODUCTION Notions of risk have long been central to discussions of economic behavior, but to date relatively little attention has been paid to the role of higher (than second) order risk attitudes. One exception is the relevance of prudence,...
Risk-Taking-Neutral Background Risks
INTRODUCTION Consider an individual who must make an economic decision in the face of risk. For example, the individual might be an investor deciding on how to allocate wealth between a risky and a risk-free asset. Alternatively, the individual...
Symposium on Choices under Uncertainty: Beyond Risk Aversion
INTRODUCTION Harris Schlesinger played a prominent role in the development of insurance economics and expected utility theory over the last four decades. During this period, he deeply influenced many colleagues with whom he interacted. Working with...
The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance
INTRODUCTION As compared to traditional silo approaches to risk management, a holistic approach is believed to be more effective for firms with complex and interrelated risks, such as property and casualty (P&C) insurers (Hoyt and Liebenberg, 2011;...
Toward a Systematic Approach to the Economic Effects of Risk: Characterizing Utility Functions
INTRODUCTION By implying linearity of preferences in probabilities, von Neumann--Morgenstern expected utility theory provides a great deal of common structure for applied problems. Yet the literature on the economics of risk has often approached...
Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.