This analysis compares the cost efficiency of Islamic and conventional insurers operating in eight countries. We analyze data collected from 32 insurers using stochastic frontier analysis, data envelope analysis and a partial frontier approach with order-alpha free disposal hull. We compare the...

This paper contributes to the existing literature by examining the efficiency and competitiveness of the Takaful insurance. We employ the Data Envelopment Analysis (DEA) to compute the efficiency of Takaful operators, while Panzar-Rosse (P-R) H-statistic method is used to evaluate the degree of...

This paper uses a modification of the Random Forest classification algorithm to predict insolvency of insurers. RF orders companies according to their propensity to default. We show that RF methodology delivers higher quality of prediction compared to other existing methods. In addition, RF...

This paper argues that an economy becomes more resilient to nationwide shocks such as financial crises when the input-output network has high entropy. In networks, entropy increases as each node has widely and evenly distributed relationships with other nodes. I use a multisector general...

Insurance market is characterized by growing competition. This has imposed needs relating to the continuous capacity building of insurance companies, the continuous improvement of operating results and the assessment of the effects of insurers’ financial investment. The ultimate goal of these...

This paper studies the set of Pareto optimal insurance contracts and the core of an insurance game. Our setting allows multiple insurers with translation invariant preferences. We characterise the Pareto optimal contracts, which determines the shape of the indemnities. Closed-form and numerical...

For effective Customer Relationship Management (CRM), it is essential to have information on the potential value of customers. Based on the interplay between potential value and realized value, managers can devise customer specific strategies. In this article we introduce a model for predicting...

Cummins et al. (1994) provide a conceptual framework for policymakers to use in analyzing risk-based capital systems. Based on their framework, this article provides an overview and critical analysis of risk-based capital requirements, with a focus on property/casualty insurance, as implemented...

The aim of this paper is to discuss different methods for risk assessment in theGerman automobile industry. We present the traditional approach for classifyingrisks, which is actually applied in the German market, and discuss one crucial difficulty inherent to this approach for proper risk...

Life insurers often claim that the life settlement industry reduces theirsurrender profits and leads to an adverse shift in their portfolio of insuredrisks, i.e., bad risks remain in the portfolio instead of surrendering.In this paper, we aim to quantify the effect of altered...