Reinsurance Companies Research Articles

The Relationship between Property-Liability Insurance Premiums and Income: An International Analysis

The Relationship between Property-Liability Insurance Premiums and Income: An International Analysis

How actuaries and underwriters look at risk.

How actuaries and underwriters look at risk Get access A. Tyler A. Tyler Mercantile & General Reinsurance Company PLC, Moorfields HouseMoorfields, London EC2Y 9AL, U.K. Search for other works by this author on: Oxford Academic PubMed Google Scholar European Heart Journal, Volume 9, Issue suppl_G, May 1988, Pages 31–35, https://doi.org/10.1093/eurheartj/9.suppl_G.31 Published: 01 May 1988

Foreign Exchange Risk in International Insurance and Reinsurance

Insurance and Reinsurance companies, by underwriting risk portfolios not only across traditional insurance categories but also across national currencies, are assuming a new form of financial risk for which they have not yet developed the necessary risk management tools.

Research and Statistics on Natural Disasters in Insurance and Reinsurance Companies

Research and Statistics on Natural Disasters in Insurance and Reinsurance Companies

Strategic Planning of Central American Insurers

This paper presents results of an exploratory study describing a group of Central American insurers in their beginning efforts using management tool of strategic planning. The unique characteristics of Central American environment and their effect upon strategic planning are explored and analyzed. This analysis leads to a set of recommendations for those corporate executives and academicians concerned with insurance and reinsurance companies in Central America. Among many research problems of investigating application and/or limitations of application are two; definition of tool and accumulation of empirical data that are valid and meaningful. Academic literature (1) and industry speeches (2) present an array of nomenclature for planning, such as long range, medium range, corporate, tactical, environmental, and so on. In reviewing Central American insurers definition selected for this study is one that was used in a prior investigation (3). Strategy is defined as the pattern of major objectives, purposes or goals, and essential policies and plans for achieving those goals, stated in such a way as to define what business company is in or is to be in and kind of company it is or is to be. (4) This definition (although imperfect) seems to encompass many of characteristics mentioned by practitioners and academicians (5). Furthermore definition is appropriate for this study as it enables researcher to make some comparison between United States and Central American companies. The Strategic Framework The authors of definition have also developed a framework for deriving a strategic plan. The framework is divided into two interrelated sections: formulation and implementation. Briefly stated these divisions are: A. Strategy Formulation 1. Environments-Economic, social, political markets, industry competition and products. 2. Resources-managerial, financial and technical. Israel Unterman, D.B.A., is Visiting Professor of Management, San Diego State University and was formerly Professor at Instituto Centroamericano de Administracion de Empresas (INCAE), Managua, Nicaragua. The author thanks two anonymous referees for helpful suggestions in preparing this paper for final publication.

Non-Tariff Barriers to Alien Insurance in the United States

The relative importance of foreign investment in the American insurance market has been declining rapidly since World War II. The market share of alien insurers is less than seven percent, a low degree of market penetration. In the absence of tariffs on insurance imports, nontariff barriers such as quotas and restrictive state-trading policies, export subsidies and taxes, discriminatory government and private procurement policies, selective indirect taxes, selective domestic subsidies and aids, restrictive administrative and technical regulations as well as restrictive business practices must be considered as factors explaining the small alien role in American insurance. The study finds nontariff barriers to alien insurers to be present but not controlling in explaining limited market entry. The role of the insurance institution in international trade has become the subject of increasing interest in recent years as a result of a massive expansion of trade and investment, with concurrent problems of balances of payments and protectionism, particularly on the part of developing nations. The United Nations Conferences on Trade and Development in 1964, and subsequently, adopted resolutions' designed to shelter insurance as an infant industry in each of the developing nations. The International Insurance Advisory Council of the U.S. Chamber of Commerce promulgated a position paper outlining the various kinds of insurance recriminations practiced by foreign countries that limit freedom of trade in insurance and reinsurance.2 More recently, the Congress of the United States expressed Irving Pfeffer is Professor of Finance and Insurance, Virginia Polytechnic Institute and State University. He has served as consultant to government and insurance organizations. He is author of numerous articles and several books. He is a member of the State Bar of California. I Nagendra Singh, Achievements of UNCTAD-1 (1964) and UNCTAD-l1 (1968) in the Field of Shipping and Invisibles, S. Chand & Co., New Delhi, India, 1969, pp. 232233, reproduces the Recommendation of the 1964 Conference adopted by a roll-call vote of 100 to 1, with 12 abstentions, favoring the encouragement and strengthening of national insurance and reinsurance markets to increase their retention capacity. They also recommended that Technical reserves and guarantee deposits of insurance and reinsurance companies or institutions should be invested in the country where the premium income arises. 2 International Insurance Advisory Council, Chamber of Commerce of the United States, Position Paper on International Insurance and Reinsurance, Washington, 1972.

Prediction of Automobile Claims by Psychological Methods. A Case Study in Automobile Insurance

An eight year old program in which accidental risk of underage males is predicted by means of psychological measurement and premiums and limits varied accordingly is described. Data on accident rate, cost and seriousness of injury are presented for six groups of underage males whose risk was predicted and for two groups of adult (lA) drivers. Related data on non-vehicular accident rate and intra-family accident rates are presented. It is suggested that perhaps attitudes are both pervasive and persistent enough that they would constitute a workable base for underwriting or rating a variety of insurance. Casualty underwriters have progressively moved away from the practice of spreading risk over a broad heterogeneous base toward a policy of spreading it over more narrowly defined homogeneous groupings. Age, sex, marital status, zone, vehicle characteristics, prior loss experience and driver training are among the commonly used bases for establishing rate groupings. Combinations of these rating factors are frequently used, resulting in virtually hundreds of sub-groups of insureds and an extremely complicated rating structure. Recently Grinnell Mutual Reinsurance Company has moved in a direction reversing this trend. If successful, this approach could result in a single rating variable. GMRC has taken the position that the attitudes and personality traits of an applicant importantly influence his behavior (e.g. how he drives) and consequently have a direct causal relationship Charles F. Haner, Ph.D., is Austin Professor of psychology at Grinnell College. He is research consultant to Maytag Company and Grinnell Reinsurance Company. Dr. Haner is Past President of Iowa Psychological Association. This paper was presented at the 1967 Annual NIeeting of A.R.I.A. to the risk he represents. By assessing these attitudes through psychological testing devices, accident susceptibility can be predicted and applicants can be placed at various risk levels. If this proves out, only the risk level of the applicant and the valuation of the coverage would need enter into determination of premium. This paper will briefly describe GMRC's Youthful Driver Program, the first and quite successful step in testing out this concept, will present the results of a recently completed study which bears importantly on the company's basic concept and finally will suggest additional topics under investigation or worthy of investigation. The Youthful Driver Program became operational at GMRC in September 1959, eight years ago. The rationale of the program was as follows: 1. The driver is the most important variable influencing both the frequency and severity of automobile accidents.The road, the vehicle and the weather are minor contributing factors to both frequency and severity. 2. The attitude and personality of the driver play a much more important role

Annals of Life Insurance Medicine.

This is a neatly made, hard-cover volume of 187 pages, printed in well-designed, clear type on paper of excellent quality. These features are mentioned because, in spite of a title suggesting a periodical journal, the format resembles that of a single-issue book. The Editorial Committee, that has produced it, states in a foreword that the Annals of Life Insurance Medicine will appear as a brochure issued at irregular intervals. This particular volume is sponsored by the Swiss Reinsurance Company, of Zurich, in celebration of the 50th anniversary of that company's activity in the field of risks. The concept of substandard risks originated in 1890, with Dr. Oscar H. Rogers, of the New York Life Insurance Company. Until then, applicants for insurance were either accepted or rejected, and almost any impairment, however trivial, was grounds for rejection. Millions of people needing insurance protection, who were then denied it, may now

Die Rechnungslegungsvorschriften für die Lebensversicherungsgesellschaften in Frankreich

The rendering of accounts of all French insurance companies, with the exception of reinsurance companies, is governed by the „Decret-Loi“ (Executive Order) of June 14, 1938, and subsequent Government ordinances. By this fundamental document Government control was extended to the entire insurance industry in France, the essential provisions thereof being embodied in the Ordinance of December 30, 1938. The Accounts Procedure for insurance undertakings itself was defined by the Ordinance of July 29, 1939, providing for the use of specific forms for Annual Statements, Balance Sheets, General Profit and Loss Accounts and for all other reports and annexes. It was based directly on the general principles of the Executive Order of June 14, 1938 which aimed at the clear disclosure of each company’s total liabilities without deduction of reinsurance and which determined the admitted assets to cover the liabilities for technical reserves. This legal framework has proved expedient for more than 20 years and has produced a clear and uniform analysis of the results and reports of all companies operating in France. Certain forms, for instance, show immediately whether or not the company’s liabilities are covered by assets exactly as specified by law. French subsidiaries of foreign companies are subject to the same regulations.

An investigation of mortality with IBM 650

Abstract During the period 1953/2-1956 an investigation of the mortality of standard risks for the years 1948/2-1952 was made in Finland. This investigation resulted in a renewal. of the bases of calculation in 1957 for all Finnish life companies. With certain aggravations these bases were applied also to substandard risks, but there was not a sound knowledge of how these bases corresponded to the actual mortality of substandard risks. Therefore, it was decided to perform an investigation of the mortality of these risks. This was done towards the end of 1959. The investigation was done at the Varma Reinsurance Company, which takes care of the substandard risks of all the Finnish life companies.

Russian Reinsurance Company (plaintiff) v. Stoddard (defendant).

Recognition of Governments — Effect of Non-Recognition upon Decrees of Non-Recognised Governments — Liquidation and Nationalisation Decrees of the Soviet Government — Effect in the United States — Suit against Trustees of a Dissolved Corporation.

The Russian Reinsurance Company Case

The Russian Reinsurance Company Case