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

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 …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting … decision to insure will depend on whether the benefits the insuree derives from insurance after having compensated the damaged …

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 …

; insurance ; resilience ; risk ; risk preferences … often interpreted as insurance: by decreasing the probability of future drops in the provision of ecosystem services …, resilience insures risk-averse ecosystem users against potential welfare losses. Using a general and stringent definition of …

Insurance for natural hazards - earthquakes, hurricanes, or pandemics - is rarely comprehensively adopted without …. Efforts to close this insurance gap include the introduction of parametric (index) insurance products for various catastrophic … risks. We compare parametric to indemnity insurance in a simple model where the insurance company has superior information …

developed an optimal audit policy for the scoring methodology. Our application is meant for the audit of insurance fraud but can … obtained with data from a large European insurance company. First, we are able to compute a critical suspicion index for fraud …

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 then summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

-impact risks or for insurance contracts exposed to nonperformance risk …Probability weighting is often used to explain insurance choices that conflict with expected utility (EU) preferences …. We derive new theoretical results on the effects of probability weighting in the context of common insurance demand …

high-load insurance against modest stakes risks. Mandatory information disclosure is a potentially attractive public policy … tool that might improve consumers' choices, but has not been widely tested in insurance settings. We conduct an incentive …-compatible insurance demand experiment in which we manipulate the information disclosed to subjects. We test whether any of the three most …