Professor Of Insurance Research Articles

Charting a Course on the Islamic Finance Ocean: A Survey of Islamic Insurance Literatures

The number of Muslim literates in Islamic finance and conventional finance, particularly Islamic insurance, has grown tremendously, so has the number of academic and professional articles, books, and other monographs published in Islamic insurance profession. Despite Islamic insurance uniqueness based on Islamic values and philosophies, its emancipation aimed to compete or eradicate the conventional insurance at both academic and professional levels. Those monographs that were intended to replace their conventional insurance counterpart have triggered endless debates among stakeholders on their authenticity and quality of knowledge and as well challenged their authors’ authorities. Therefore, with content analysis, this survey verified whether the Islamic insurance literatures were capable of producing well-seasoned professionals of Islamic insurance. The results showed that the disputes over the available literatures might have contributed to the failure of having a standard curriculum for teaching Islamic insurance as a profession in academic at national and international levels. Review of the literatures and curriculum was recommended.

Why Choose an Insurance Career? A Pilot Study of University Students’ Preferences Regarding the Insurance Profession

The study investigates the most relevant factors affecting business students’ choice of a career in the insurance industry. Recent industry surveys indicate that students find the insurance profession uninteresting and so are reluctant to pursue a career within it. However, many of the survey respondents showed an interest in the profession. We tested three hypotheses to determine whether student choices are affected by environmental, opportunity and awareness factors. The study applied structural equation modelling and regression analysis to the data and finds that nationality, together with other environmental factors, significantly affects their choice of the insurance profession. In addition, we found that students are unaware of the underlying philosophy of insurance businesses, their products and their vital role in the economic and social system. The lack of adequate research, education providers, and the shortage of study materials and inadequate marketing strategies are among the key causes of students’ reluctance to engage with the insurance profession. This study may assist insurers, educators and professional bodies to develop their strategy directed towards attracting talents to the insurance industry.

Earthquake risk assessment and optimal risk management strategies for Hi-Tech Fabs in Taiwan

In this paper, we build an event-based seismic hazard assessment and financial analysis model for Hi-Tech Fabs in Taiwan. As we know, the low occurrence rate, tremendous loss and high uncertainty are characteristics of earthquake disasters. To handle the above issues, the model integrates knowledge from many fields including earth science, seismology, geology, risk management, structural engineering, the insurance profession, financial engineering and facility management. The portfolio of data from the site survey indicates that the model can be used to calculate the event losses (including buildings, contents and business interruption losses); furthermore the average annual loss and loss exceeding probabilities also can be calculated. The total earthquake risk cost, which includes earthquake insurance premiums, average annual retained loss and equivalent annual retrofit cost, is defined as an indicator for selection of optimal risk management strategies.

Contributors

Contributors

Florida Homeowners Insurance: How Big Is the Availability Problem and Is There a Fair Solution?

This article features a panel discussion on hurricane and wind insurance organized by Jeffrey L. Kucera for the American Risk and Insurance Association (ARIA) 2008 Annual Meeting in Portland, Oregon. The moderator, Jeffrey L. Kucera, is a Senior Consultant with EMB in North America. He has over 30 years of experience in the property-casualty business, joining EMB after a 24-year career with Allstate and 5 years as a consultant. Jeff's primary practice areas are rate making, class plans, and product development. While knowledgeable about all personal lines, he has particular experience in the homeowners line. He graduated from the University of Nebraska in 1975 with a major in mathematics and a minor in economics. He became a member of the American Academy of Actuaries (MAAA) in 1980 and a Fellow of the Casualty Actuarial Society (FCAS) in 1984. Three presenters provide a discussion on Florida Homeowners Insurance. The first presenter is Chris Carlson, a consultant with Pinnacle Actuarial Resources, Inc. He holds a bachelor of science degree in mathematics from the University of Oregon. Before joining Pinnacle Actuarial Resources, he was employed for over 25 years with Nationwide Insurance Companies in Columbus, Ohio. He is currently the President of the Casualty Actuarial Society, a fellow of the Casualty Actuarial Society, and a Member of the Academy of Actuaries. The next presenter is Locke Burt, President and Director of Security First Insurance Co. of Ormond Beach, Florida. He has 35 years of experience in the insurance profession, and in 2005, formed Security First Insurance Company. He also owns Burt & Scheid Facultative Corporation, which underwrites property facultative reinsurance on behalf of Liberty Mutual Insurance Co. and Employers Mutual Casualty Insurance Co. He holds both a bachelor of science and a master's of business administration degree from Northwestern University and a juris doctorate degree from Loyola University in Chicago. He is a licensed reinsurance broker and a licensed attorney who is a member of the Illinois and Florida Bar Associations. He was a senator in the Florida legislature from 1991 to 2002 and experienced Hurricane Andrew first-hand. While in the Florida Senate, he served as Chair of the Appropriations Committee and Republican Majority Leader. The final presenter is Jim Massie, and he provides the reinsurance perspective on Florida homeowners insurance. He is the Senior Partner of Massie Law Offices in Tallahassee, Florida, specializing in reinsurance and insurance law, seaport issues, and administrative law. He received his bachelor of arts from Miami University in Ohio and his juris doctorate from Florida State University. Interestingly, when he is not working on insurance issues, he likes to breed and race thoroughbreds. Jeff Kucera: Florida's economic growth and exposure to hurricane losses make it unique from an insurance perspective. The potential for catastrophic losses is in the billions of dollars, and the risk of ruin is a real threat for many insurance companies. More important, it is not just insurers that face severe economic pressures should the megahurricane event occur. Many insureds will also be surprised to learn that their insurance rates could be significantly increased, and these premiums are not just for their homeowners insurance. The three panelists will further describe how the situation has grown and their perspectives of the situation as an insurance company owner and reinsurer. Christopher S. Carlson: Florida's economic picture is a rather unusual situation of supply and demand interplay. Policyholders demand insurance policies, and insurance companies provide capital to write those policies. Affordability and availability are the key dynamics in the Florida homeowners market. That is, Florida homeowners think that insurance should be affordable, whereas insurers are concerned with the availability issue since their capital is at risk. …

The Implications of Solvency II for U.S. Insurance Regulation

Much work has been done in recent years on the subject of insurance regulation and capital requirements, and the process of regulatory reform will continue. It behooves insurance supervisors to take a step back, revisit the underlying assumptions that have driven supervisory reform in the various sectors, and assess what implications, if any, their conclusions have for future work. The use of internal models to establish regulatory capital requirements cannot and should not disappear. However, they must be used appropriately, with recognition of their significant limitations. The optimal structure of insurance supervision is likely to be a combination of a rules-based and a principles-based approach. That is, internal models should be an adjunct to a rules-based capital requirement that establishes a floor for regulatory capital. Capital regulation is a necessary, but not sufficient, additional requirement for effective financial regulation. On-site examinations, offsite analysis of financial performance and trends, and frequent interaction with the regulated entity are equally important. Finally, current developments have demonstrated that market discipline cannot be relied on as a substitute for regulation and supervision. The optimal regulatory structure is one that encourages supervisors to take action when it is appropriate, and a system that incorporates duplicative regulatory oversight may advance that objective. About the Author: Therese M. Vaughan is the Chief Executive Officer of the National Association of Insurance Commissioners (NAIC). As CEO, Vaughan oversees the operations of the NAIC, including offices in Kansas City, Washington, D.C. and New York City. She also serves as the Association's primary representative and chief spokesperson in Washington, D.C. Formed in 1871, the NAIC is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. Vaughan previously served as Robb B. Kelley distinguished professor of insurance and actuarial science at Drake University. Vaughan holds a Ph.D. in managerial science and applied economics from The Wharton School at the University of Pennsylvania.

Sustainability Risk Management

Risk Management and Insurance ReviewVolume 12, Issue 1 p. 25-38 Sustainability Risk Management Dan R. Anderson, Dan R. Anderson Dan R. Anderson is the Leslie P. Schulz Professor of Risk Management and Insurance, School of Business, University of Wisconsin-Madison, 975 University Avenue, Madison, WI 53706; phone: 608-263-5717; fax: 608-265-4195; e-mail: danderson@bus.wisc.edu. Kenneth E. Anderson, Director of Aon's Environmental Services Group; phone: 312-381-4226; e-mail: Kenn.Anderson@Aon.com.Search for more papers by this authorKenneth E. Anderson, Kenneth E. Anderson Dan R. Anderson is the Leslie P. Schulz Professor of Risk Management and Insurance, School of Business, University of Wisconsin-Madison, 975 University Avenue, Madison, WI 53706; phone: 608-263-5717; fax: 608-265-4195; e-mail: danderson@bus.wisc.edu. Kenneth E. Anderson, Director of Aon's Environmental Services Group; phone: 312-381-4226; e-mail: Kenn.Anderson@Aon.com.Search for more papers by this author Dan R. Anderson, Dan R. Anderson Dan R. Anderson is the Leslie P. Schulz Professor of Risk Management and Insurance, School of Business, University of Wisconsin-Madison, 975 University Avenue, Madison, WI 53706; phone: 608-263-5717; fax: 608-265-4195; e-mail: danderson@bus.wisc.edu. Kenneth E. Anderson, Director of Aon's Environmental Services Group; phone: 312-381-4226; e-mail: Kenn.Anderson@Aon.com.Search for more papers by this authorKenneth E. Anderson, Kenneth E. Anderson Dan R. Anderson is the Leslie P. Schulz Professor of Risk Management and Insurance, School of Business, University of Wisconsin-Madison, 975 University Avenue, Madison, WI 53706; phone: 608-263-5717; fax: 608-265-4195; e-mail: danderson@bus.wisc.edu. Kenneth E. Anderson, Director of Aon's Environmental Services Group; phone: 312-381-4226; e-mail: Kenn.Anderson@Aon.com.Search for more papers by this author First published: 18 February 2009 https://doi.org/10.1111/j.1540-6296.2009.01152.xCitations: 38Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume12, Issue1Spring 2009Pages 25-38 RelatedInformation

What I Learned As a Regulator

Risk Management and Insurance ReviewVolume 12, Issue 1 p. 1-9 What I Learned As a Regulator Therese M. Vaughan, Therese M. Vaughan Therese M. Vaughan is the Robb B. Kelley Distinguished Professor of Actuarial Science and Insurance, Aliber Hall, Drake University, Des Moines, IA 50311-4505, and 2008 President of the American Risk and Insurance Association; phone: 515-271-2830; e-mail: terri_vaughan@msn.com. This was delivered as the Presidential Address at the August 2008 annual meeting of the American Risk and Insurance Association in Portland, Oregon.Search for more papers by this author Therese M. Vaughan, Therese M. Vaughan Therese M. Vaughan is the Robb B. Kelley Distinguished Professor of Actuarial Science and Insurance, Aliber Hall, Drake University, Des Moines, IA 50311-4505, and 2008 President of the American Risk and Insurance Association; phone: 515-271-2830; e-mail: terri_vaughan@msn.com. This was delivered as the Presidential Address at the August 2008 annual meeting of the American Risk and Insurance Association in Portland, Oregon.Search for more papers by this author First published: 18 February 2009 https://doi.org/10.1111/j.1540-6296.2009.01150.xCitations: 1Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume12, Issue1Spring 2009Pages 1-9 RelatedInformation

European Systems Could Be Models for U.S. Health Care Reform

European Systems Could Be Models for U.S. Health Care Reform

Student Perceptions of the Insurance Profession

AbstractTo attract students to the risk management and insurance profession, strategies need to be developed to overcome biases in their perceptions of the profession. This study attempts to determine some of those perceptions of students—specifically a group of business career high school students and a group of college students enrolled in an introduction to business course—about the personality traits of insurance professionals. A Personality Factor Questionnaire previously used extensively in other research was used to measure differences in student perceptions of personality profiles of different professions. We also measured how student characteristics such as age, sex, and expected college major influence student perceptions of these traits. The overall general conclusion was that perceptions of the profession are not as negative as many imagine, but do require some substantive work to improve, even among students seeking business careers.

A Helping Hand For Private Insurance Markets

A Helping Hand For Private Insurance Markets

The Insurance Brokerage Industry Post‐October 2004

Risk Management and Insurance ReviewVolume 9, Issue 2 p. 89-108 The Insurance Brokerage Industry Post-October 2004 J. D. Cummins, J. D. Cummins J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorNeil Doherty, Neil Doherty J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorGerald Ray, Gerald Ray J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorTerri Vaughan, Terri Vaughan J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this author J. D. Cummins, J. D. Cummins J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorNeil Doherty, Neil Doherty J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorGerald Ray, Gerald Ray J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this authorTerri Vaughan, Terri Vaughan J. David Cummins is Harry J. Loman Professor of Insurance and Risk Management at the Wharton School of the University of Pennsylvania; e-mail: cummins@wharton.upenn.edu. Neil Doherty is Ronald A. Rosenfeld Professor of Insurance and Risk Management, and Insurance Department Chair at the Wharton School of the University of Pennsylvania. Gerald L. Ray is President for Corporate Operations at the Van Gilder Insurance Corporation, headquartered in Denver. Terri Vaughan is a professor at Drake University.Search for more papers by this author First published: 13 October 2006 https://doi.org/10.1111/j.1540-6296.2006.00088.xCitations: 7 This article was not subject to double-blind peer review. Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Citing Literature Volume9, Issue2Fall 2006Pages 89-108 RelatedInformation

Blessed Are the Builders

INTRODUCTION As an admittedly aging Baby Boomer, now often find myself pausing to reflect upon many things in life. Sometimes, in the supply closet, pause to reflect upon why am there-did really need something? Other times pause to reflect upon where parked my car? Or did actually walk to work this morning? So when one pauses as much as do, perhaps reflection upon the vicissitudes of academic programs in our discipline during the baby boom era is not so trivial. THE BABY BOOM GENERATION Demographers have declared the years 1946 through 1964 as the birth years for the baby boom generation. So let's look back at our discipline from the perspective of that leading edge boomer, the Risk Management and Insurance (RMI) professor born in 1946. Assume that our boomer graduated from college about 1967 or 1968, add a year or two in industry, graduate school, or the military and four years for a doctoral program. This means that our young professor would have entered the academic profession in 1973. Ah, 1973-a year of great conflict and anguish. The U.S. signed a cease-fire and hastily departed Vietnam. In late October, U.S. President Richard Nixon fired special prosecutor Archibald Cox (no relation), which led to other firings and resignations in what became known as the Saturday Night Massacre. And how can we forget, the Supreme Court ruled on the landmark case of Roe v. Wade. Despite the tumult, 1973 was a year of great promise. A new technology called Transmission Control Protocol/Internet Protocol (TCP/IP) was developed, although 10 years would pass before it became the standard for communication between computers. Nuclear Magnetic Resonance, the technology behind MRI scanning, was created. The Grammy Award for Album of the Year went to George Harrison, Ravi Shankar, Bob Dylan, Eric Clapton, Klaus Voormann, and others for The Concert for Bangla Desk. The album raised millions for that country's starving population, albeit too late. And... the Academy Award for Best Picture went to... The Godfather, although am not sure that reflected a great advancement in the arts. THE VIEW IN 1973 Delivering the ARIA presidential address in 1973 was not Marion Brando, but another celebrity, Professor Joseph M. Belth of Indiana University. In his wide-ranging talk Joe refers to a call by board member Jim Athearn for ARIA to refuse financial support from the insurance industry. In an accompanying Journal of Risk & Insurance article, Professor Athearn (1974) states that, Over the years, ARIA has accepted so much subsidy from the industry... that we are 'hooked' on it. Joe Belth (1974) goes further, saying, I know quite a few members-and am referring here to academic members-who have sold themselves completely to the insurance industry. Some of these people would not say boo' if there was the slightest possibility that some insurance company would not like it. To his credit, he then strikes a more conciliatory tone, suggesting that ARIA has members with diverse backgrounds and viewpoints, which lends overall integrity to our organization. Looking back, we can see that the ARIA officers of 1973-Belth, Athearn, J. D. Hammond, and Al Hofflander-were quite successful. They all became presidents of our organization and were accorded respect for their research. The RMI programs of their employers did not fare so well, however. Only Athearn's school-South Carolina-can claim an RMI major today and that school's RMI faculty has been substantially reduced. In the meantime, a hardy band of faculty toiled to grow RMI programs at their home universities, often with little fanfare. In my opinion, these RMI professors were in the vanguard forging public-private partnerships, which are considered a necessity in many academic disciplines today. The results are palpable. As just one example, let's look at the most recent list of U.S. universities published by Business Insurance magazine and ranked by the number of undergraduate RMI majors (see Table I). …

Getting the Word Out About ARIA

ARIA has been a very important part of my professional life for my entire academic career, and I am pleased and honored to have the opportunity to serve as your President for the next year. To paraphrase Adlai Stevenson, [ARIA], anyone can become president. That's one of the risks you take. So now my turn has come and I am excited by the challenge of leading this great organization. Many, if not most, of you have played an important role in my professional development. I don't know if every incoming ARIA President has begun the preparation for his or her Presidential Address in a similar way, but I reflected on some of the past presidential addresses that I have heard. I also read a few of them published in our journals (it's nice to know that I will get a publication out this). And, finally, I looked over the list of ARIA Presidents. Here's how just a few of them connected with me: * George Rejda was my insurance professor at the University of Nebraska while he was President of ARIA. * Past President Travis Pritchett was the Editor of the JRI when I submitted my first paper (and he was still the Editor when my first article was accepted). * Long-time UGA Professor Jim Trieschmann was the President at the first ARIA meeting that I attended and has just retired this year as I become President. * Dan Anderson gave the first presidential address that I heard at an ARIA meeting. * Dave Cummins was the President at the first ARIA meeting at which I presented a paper. * Past-President Sandra Gustavson hired me at UGA. * After listening to Joan Schmit give her presidential address at the 1995 ARIA meeting in Seattle, I learned that the business school building at Georgia was on fire. * Recent past presidents Jack Nelson and Helen Doerpinghaus were fellow students with me at the Wharton School. * And 1 find myself bracketed now by Mark Browne, the best man in my wedding, and President-Elect, Jim Carson who was the first doctoral student I recruited to UGA. Three years ago Helen Doerpinghaus in her Presidential Address called on us to build strength through community. As I have just described, ARIA has personally been valuable to me for the community of scholars it represents and for the ways it has fostered my professional development. So needless to say, it is truly an honor for me to be a President of this great association. STRATEGIC PLANNING However, more important than what ARIA has meant to me is what ARIA means to you, its members. I think a useful part of our organizational structure in ARIA is that the President-Elect serves as the Chair of the Strategic Planning Committee. In my opinion, strategic planning is important for the self-reflection and renewed focus it can provide. An ancient Japanese proverb says, Vision without action is a daydream. Action without vision is a nightmare. Is ARIA headed in the right direction? As Chair of the Strategic Planning Committee I solicited your feedback through the ARIA listserv a few weeks ago. As a researcher, naturally I had concern for the validity of our survey approach. However, I was confident that the final question on the survey, Any other comments that you would like to share? would allow us to validate the instrument. I think the reliability of the survey results was confirmed by articulate and well-reasoned responses like: * Nope! * Rob Hoyt is the greatest! But seriously, the feedback that we obtained was very thoughtful and will be very useful. The full results of our survey have been shared with the Board at its meeting this past Sunday, but I want to share just a few of the key results with you now. The key responses to our first question, What is the most important thing ARIA does? were: * facilitates the sharing of ideas; * promotes research (through its journals, its meeting); and * promotes the teaching of risk management and insurance in colleges and universities. …

Moral Hazard, Basis Risk, and Gap Insurance

This article addresses the trade-off between moral hazard and basis risk. A decision maker, e.g., a primary insurer, is considered who can purchase an index hedge and a (re)insurance contract that covers the gap between actual losses and the index-linked payout, or part of this gap. The results suggest that combining insurance with an index hedge may extend the possibility set and by that means lead to efficiency gains. Naturally, the results depend heavily on the transaction costs associated with both instruments. In particular, the authors show that if the index product is without transaction costs, at least some index-linked coverage is always purchased, so long as there is positive correlation between the index and the actual losses. So under these circumstances, there is in any case a benefit from the availability of index products. Furthermore, it is shown that the index hedge would always be supplemented by a positive amount of gap insurance.

Institutional Context and Stress Appraisal: The Experience of Life Insurance Agents in Singapore

This paper examines the experience of work stress and its psychological consequences among Singapore's life insurance agents in the context of the institutional arrangements of the life insurance industry. Results showed that our insurance agents generally experienced a low level of work stress, probably due to the cushioning effects of a supportive work environment of the industry. The most stress was found to be derived from work demands, and the least stress from interpersonal relationships at the workplace. Work demands were also found to contribute to the overall experience of work stress. However, such stress did not deter them from having a satisfactory work life nor did it result in mental ill-health. Rather, job satisfaction and mental health were associated with emotional strains caused by professionalism. The professional expectation for working independently may predispose the agents to self-isolation and loneliness while trying to hide their weaknesses and keep their problems to themselves. These feelings were aggravated by the generally low level of acceptance of the insurance profession by Singapore society.

Pour une géographie économique des risques naturels. / For an economic geography of natural hazards

The creation of an association (the Natural Hazards Mission) within the technical groups of the insurance profession is a response to the wish of insurance companies to position themselves amongst the different actors which, long with government authorities, intervene in risk management. The aim is none less than to ensure the optimal running of the system of risk management in France, notably by improving knowledge of the economic issues related to natural hazards.

The Whitbeck‐Beyer Distinguished Professor of Financial Planning and Insurance

The Whitbeck‐Beyer Distinguished Professor of Financial Planning and Insurance

New Jersey's Highest Court slams the door on no‐stacking advocates

Since 1994, environmental‐insurance coverage cases in New Jersey have been framed by the New Jersey Supreme Court's landmark decision in Owens‐Illinois. That case, however, failed to clarify with appropriate precision a number of basic insurance issues. In 1998, the court revisited its earlier decision. In Carter‐Wallace, the court explicitly addressed allocation between layers of coverage, rejecting, in the process, the two alternative allocation methodologies proposed by the plaintiff and defendant. As part of the court's analysis, it adopted an allocation methodology that endorses the stacking of triggered policy limits to respond to progressive indivisible damage. The stacking issue is a critical allocation question. Advocates of no‐stacking believe the issue is so central to the allocation question itself that it should dictate the allocation methodology. Even after Carter‐Wallace, no‐stacking advocates continue to press their case. Professor Neil Doherty, a no‐stacking advocate, recently articulated his views as a special master in the Princeton Gamma Tech case. Professor Doherty—a professor of insurance at the University of Pennsylvania, and not a lawyer—attempted to convince the trial court that the stacking question had not been answered by the New Jersey Supreme Court in either Owens‐Illinois or Carter‐Wallace. He ignored the court's pronouncement in Carter‐Wallace that the model adopted therein should be the presumptive model except when extraordinary circumstances are present. Instead, Professor Doherty opined that the open question on stacking dictated a new and novel allocation methodology—one different from that provided by the Carter‐Wallace court. Indeed, the very model advanced by Professor Doherty in the Princeton Gamma Tech case had been unequivocally rejected by the court in Carter‐Wallace. In our view, the stacking question is not open for academic debate; it has already been answered two times by the New Jersey Supreme Court. It is clear that the New Jersey Supreme Court has developed an allocation methodology that explicitly adopts the stacking of policy limits.

Health benefits at work: an economic and political analysis of employment-based health insurance

The majority of Americans receive their health insurance for themselves and their families through their job. The employee pays a portion of the premium but the employer chooses the type and amount of coverage offered as well as administers the plan. This book addresses the question: Who really pays for employer-arranged health insurance? Are premiums paid from company profits or do employees bear the cost through lower wages? Pauly suggests that this confusion has complicated the debate on public policy and needs to be alleviated.This work first shows how views taken by business and political leaders during the Clinton health reform proposal debate were affected by this confusion and did not follow the economic view. It then provides a novel, intuitive, but comprehensive outline of the economic theory that bears on this question. Empirical evidence consistent with the economic view is summarized, and the implications of the view for some important issues in health policy and in practical health benefits management are discussed in detail.Health Benefits at Work explores the political economy of health policy when the stakeholders have an uncertain and possibly incorrect understanding of their actual interests. For the benefits specialist, it provides an accessible treatment of the complex and often counterintuitive economics of health benefits. This will appeal to the health policy community as well as economists and anyone concerned with issues surrounding health insurance in employment settings.This book is refreshing . . . clean and intuitive; the logic devastating. --Michael A. MorrisseyMark V. Pauly is Professor of Health Care Systems and Insurance and Risk Management, The Wharton School, University of Pennsylvania.