scholarly journals Efficiency of Insurance Firms With Endogenous Risk Management and Financial Intermediation Activities

2007 ◽  
Author(s):  
Georges Dionne ◽  
J. David Cummins ◽  
Robert Gagné ◽  
Abdelhakim Nouira
Keyword(s):  
Risk Management ◽  
Financial Intermediation ◽  
Endogenous Risk ◽  
Insurance Firms

scholarly journals Efficiency of insurance firms with endogenous risk management and financial intermediation activities

2009 ◽  
Vol 32 (2) ◽  
pp. 145-159 ◽  
Author(s):  
J. David Cummins ◽  
Georges Dionne ◽  
Robert Gagné ◽  
A. Hakim Nouira
Keyword(s):  
Risk Management ◽  
Financial Intermediation ◽  
Endogenous Risk ◽  
Insurance Firms

scholarly journals EXOGENOUS AND ENDOGENOUS RISK FACTORS MANAGEMENT TO PREDICT SURRENDER BEHAVIOURS

2013 ◽  
Vol 43 (3) ◽  
pp. 373-398 ◽  
Author(s):  
Xavier Milhaud
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Solvency Ii ◽  
Risk Models ◽  
Endogenous Risk ◽  
European Directive ◽  
Long Time

AbstractInsurers have been concerned about surrenders for a long time especially in saving business, where huge sums are at stake. The emergence of the European directive Solvency II, which promotes the development of internal risk models (among which a complete unit is dedicated to surrender risk management), strengthens the necessity to deeply study and understand this risk. In this paper, we investigate the topics of segmenting and modelling surrenders in order to better take into account the main risk factors impacting policyholders' decisions. We find that several complex aspects must be specifically dealt with to predict surrenders, in particular the heterogeneity of behaviour as well as the context faced by the insured. Combining them, we develop a new methodology that seems to provide good results on given business lines, and that moreover can be adapted for other products with little effort.

scholarly journals Investigation of the Pillars of Sustainability Risk Management as an Extension of Enterprise Risk Management on Palestinian Insurance Firms’ Profitability

2020 ◽  
Vol 12 (11) ◽  
pp. 4709
Author(s):  
Rami Shaheen ◽  
Mehmet Ağa ◽  
Husam Rjoub ◽  
Ahmad Abualrub
Keyword(s):  
Risk Management ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Enterprise Risk Management ◽  
Reverse Causality ◽  
Comprehensive Understanding ◽  
Management Efficiency ◽  
Enterprise Risk ◽  
Insurance Firms

This research paper examined the simultaneous relationship between sustainability risk management (SRM) as an extension of Enterprise Risk Management (ERM) and Palestinian insurance firms’ profitability, for the period spanning 2007Q1 to 2018Q4, by applying the panel dynamic (Generalized Method of Moments) GMM model. The literature was expanded by providing a comprehensive understanding of determining the pillars of ERM with the use of the factor analysis principle component method. The findings revealed that the firm’s profitability positively corresponded to ERM1 implementation, which represents “management efficiency”. In contrast, it shows negative correspondence to ERM2 implementation, which represents “control and ownership”. Furthermore, there were slightly negative signs from managing the use of leverage and they were conservative in terms of loss reserves. The challenges of firms’ profitability have negatively corresponded to emerging sustainability risks, such as political stability, that cause premiums written to show weak signs of excessive choice of risk or prices that are not met carefully. Interestingly, there is a positive relationship in the interaction between ERM2 implementation during the crisis period on insurance firms’ profitability. There is a robust causal relationship from ERM to the profitability (either positive or negative). The reverse causality is also significant but to a lesser extent. Thus, the study recommends alignment more coherent with the implication of ERM as holistic risk according to the market characteristic towards the environmental perils leads to sustainable development and its segments to maintain the longer term of survival in the firms’ performance.

scholarly journals Actuarial Risk Management Practices, Underwriting Risk and Performance of P & C Insurance Firms in East Africa

2017 ◽  
Vol 13 (22) ◽  
pp. 207
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi ◽  
Erasmus Kaijage ◽  
Martin Ogutu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
East Africa ◽  
Management Practices ◽  
Ripple Effect ◽  
Loss Ratio ◽  
Insurance Firms ◽  
Actuarial Risk ◽  
And Performance ◽  
The Relationship

The purpose of the study was to establish the intervening effect of underwriting risk (loss ratio) on the relationship between actuarial risk management practices (ARMP) and performance of property and casualty (P & C) insurance underwriters in East Africa. Findings from primary and secondary data gathered from 82 general insurers from Kenya, Uganda and Tanzania show that there is a significant positive relationship between ARMP and non-financial performance and that loss ratio significantly mediates this relationship. The relationship with financial performance was however insignificant. The implication is that P & C insurance firms should keenly watch their loss ratios in order to improve their non-financial performance by correctly underwriting, pricing and reinsuring their risks in order to influence their claims ratio and also have a strategic claims management program in place that controls costs and leads to better firm reputation, which in turn will have ripple effect in increasing business volumes and performance. It is recommended that further empirical studies be carried out to establish other factors that especially influence financial performance.

AGRICULTURAL FINANCE REVENUE FUTURES CONTRACT

2004 ◽  
Vol 07 (02) ◽  
pp. 85-99 ◽  
Author(s):  
MARTIAL V. GUINVARC'H ◽  
JACQUES JANSSEN ◽  
JEAN E. CORDIER
Keyword(s):  
Risk Management ◽  
Crop Yield ◽  
Management Strategy ◽  
Financial Intermediation ◽  
Futures Contracts ◽  
Financial Intermediary ◽  
Agricultural Finance ◽  
Futures Contract ◽  
Put Option

To respond to financial compound risk of farmers, two multiplicative derivative contracts, called respectively revenue futures contract and revenue put option, are proposed. The paper presents the theoretical management strategy of such a contract under the constraint that price and crop yield futures contracts are quoted. A financial intermediary can thus develop a risk-free management strategy to build a revenue futures contract. This paper opens perspectives on risk management for farmers, on completeness of markets and on new financial intermediation.

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