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

our model. Banks increased lending to the agricultural sector in counties with higher insurance coverage after 1980, even … insurance such that their overall risk did not increase meaningfully. We discuss the implications of our results in the light of …In this paper, we introduce a model to study the interaction between insurance and banking. We build on the Federal …

risk-taking and welfare may be reduced by the introduction of index insurance if the premium is set too high. If the formal …Moral hazard and adverse selection impede the development of formal crop insurance markets in developing countries …. Besides, the risk mitigation provided by informal risk-sharing arrangements is restricted by their inability to protect …

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 …

Index triggers have enabled the extension of insurance to disaster risks by providing a simple mechanism to determine … insurance payment. Disaster risks are notoriously difficult to insure against due to the covariant nature of risks, moral hazard … and adverse selection. Index based risk transfer minimizes these obstacles by not fully insuring the risk. However, such …

, cyber risk is expanding rapidly. Here, Prof. W. Jean Kwon looks at how the insurance industry will adapt to the “cyber …For years, the insurance industry was essentially about mathematical quantification and financial transformation of …

Insurance ideas inform legal thought: from tort law, to health law, to theories of distributive justice. Within legal … thought, insurance is often conceived as an ideal type in which insurers distribute determinable risks through contracts that … restrictive vision of liability-based regulation, on the grounds that uncertainty poses an existential threat to insurance markets …

insurance demand or consumption. Empirical research on risk aversion may be categorized into two main areas, i.e. 1) the …Determinants of risk attitudes of individuals are of great interest in the growing area of behavioral economics that … purpose of this paper is to review the empirical literature on risk aversion (and risk behavior) with a particular focus on …

residential property for applications in banking and insurance including pricing, risk management, and portfolio management. Risk …The recent international credit crisis has highlighted the significant exposure that banks and insurers, especially … mono-line credit insurers, have to residential house price risk. This paper provides an assessment of risk models for …