requirements are refined by adding a risk correction term that takes into account the interdependencies of the risks of different …

contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

Reputational risk has become a critical concern for most organizations. Insurers, who rely on trust to generate … expectations, which we test using a rich data set on operational loss risk events. Results indicate that passage of the Sarbanes … significantly related to reputational risk. In some samples, Tobin's Q, the level of competition, and the discount rate also were …

The insurance industry could potentially play a greater constructive role in mitigating climate risk by aligning with …

Climate risk impacts the insurance industry on both sides of the balance sheets. On the one hand, rising weather …

purchase the insurance, even though they overwhelmingly cite rainfall variability as their most significant source of risk. We … insurance product designed to compensate low-income Indian farmers in the event of insufficient rainfall during the primary … monsoon season. We first document relatively low adoption of this new risk management product: Only 5-10 percent of households …

tools in a standard insurance demand theory environment. We concentrate on the problem of basis risk versus transaction cost …The use of catastrophe bonds (cat bonds) implies the problem of the so called basis risk, resulting from the fact that … the problems of moral hazard and default risk, an important advantage of cat bonds can be seen in the presumably lower …

Risk management is now present in many economic sectors. This paper investigates the role of risk management in … financial intermediaries whose primary role in the economy is risk pooling and risk bearing. The risk pooling and risk bearing … functions performed by insurers are the primary determinants of the need for risk management. The main goal of this paper is to …

This paper adds to the ongoing debate about low farmers' uptake of risk management (RM) tools subsidised by the Common … intermediaries and the perceived barriers to adopting may influence farmers' intention to adopt the insurance and to participate in … intention to adopt (e.g. risk attitude). Data were gleaned from direct interviews among 105 Italian farmers and analysed through …

This article builds on Froot and Stein in developing a framework for analyzing the risk allocation, capital budgeting … with risk management and capital allocation; (ii) some, but not all, of the risks they face can be frictionlessly hedged in … of risk and capital structure of the firm. This approach allows us to integrate these features into: (i) the pricing of …