since vehicle collision coverage, unlike what it seems, is not very profitable for insurance companies and is moving towards making losses, this paper considered the adequacy of measures and rates used by insurance companies, and intended to optimize the methods by employing more scientific approaches. in order to do so, first, the factors affecting the risk of policy holders were identified an...

Insurers 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 investig...

I develop a two-sided market model to study the role played by indirect externalities in shaping the pricing and quality decisions of managed care organizations. I find that managed care quality, access to physicians, and physician reimbursements decrease when the cost of providing quality or the population health risk increases. These decreases are more pronounced when the externality exerted ...

Digital technology is costly, but it allows insurers to more quickly learn about the risk type of their policyholders. We study the implications of this speed-versus-cost tradeoff for equilibrium pricing and coverage decisions in an insurance market featuring adverse selection. In particular, we develop a theoretical model of dynamic competitive equilibrium featuring individuals who differ in t...

In both the past literature and industrial practice, it was often implicitly used without any justification that the classical strong law of large numbers applies to the modeling of equitylinked insurance. However, as all policyholders’ benefits are linked to common equity indices or funds, the classical assumption of independent claims is clearly inappropriate for equity-linked insurance. In o...

This paper studies the e¤ects of company risk and state government guarantees on the behavior of ordinary life policyholders during the 1988-1998 period. Consistent with market discipline, it ...nds a strong positive relationship between company default risk and policyholder termination rates. The paper ...nds only weak evidence of a decline in market discipline following the creation of govern...

This article investigates the relationship between firm specific factors and macroeconomics on profitability in Taiwanese property-liability insurance industry using the panel data over the1999 through 2009 time period. Using operating ratio and return on assets (ROA) for the two kinds of profitability indicators to measure insurers’ profitability. The results show that underwriting risk, reins...

The rate of return on investment for unit-linked insurance products in Indonesia is still volatile and depends the instruments performance. However, net that given to policyholders projected at beginning year used as a benchmark choosing right instrument, referred credited interest rate. Interest rates movements affect yield Therefore, calculation requires appropriate methods reduce risk loss, ...

Solvency is a primary concern for regulators of insurance companies, claims paying ability is a primary concern for policyholders, and return on investment is a primary concern for investors. These interests potentially conflict, and the decision-makers for the firm must trade off one concern versus another. Here we examine the efficiency of insurance companies via data envelopment analysis usi...