This paper looks at the limitations of quantitative models for evaluating risks in the liability insurance business, and suggests that insurance risks very often are not reliably calculable except in hindsight, at which point the risk has already been transformed into an all-too-measurable loss....

Shareholder litigation and class action suits play a key role in protecting investors and regulating big businesses. But Directors and Officers liability insurance shields corporations and their managers from the financial consequences of many illegal acts, as evidenced by the recent Enron...

In the opening essay in Embracing Risk: The Changing Culture of Insurance and Responsibility, Jonathan Simon and I assert that western society is engaged in a transformation from a dominant paradigm of spreading risks to a paradigm that involves embracing risk. (Baker & Simon, eds. 2002) The...

Insurance, we all know, transfers risk. Yet, what we usually think of as a transfer of risk is also a transfer of responsibility. The promise of insurance and other forms of risk management is gaining a measure of control over an uncertain world. Reaching out to insurance institutions for...