For economic development, investment are necessary, investments are made out of savings. Insurance Company is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups. These savings are channelized into investment for economic growth. Insurance serves a number of valuable economic functions that are largely distinct from other types of fi...

Dilip Mookherjee, Debraj Ray and Kunal Sengupta are thankfully acknowledged. 2 Abstract: The purpose of this paper is to examine the impact of financial intermediation on precautionary savings and incentives to invest in a setting where the credit market is subject to informational asymmetry due to moral hazard. We show that precautionary savings are the outcome of financial contracts that offe...

The main purpose of this paper is to investigate the performance of Nigerian insurance companies using Data Envelopment Analysis (DEA). Because of the unavailability of the required data, the study is limited to ten Nigerian insurance companies for the period of five years from 2008 to 2012. The input employed were commission expenses and management expenses, while premium and investment income...

We use data from the Survey of Consumer Finance and Survey of Income Program Participation to show that young households with children are under-insured against the risk that an adult member of the household dies. We develop a macroeconomic model with human capital risk, limited pledgability of human capital (limited contract enforcement), and age-dependent returns to human capital investment. ...

Risk shifting is a well-known agency problem in corporate finance which also exists between policyholders and shareholders of insurance companies. Shareholders engage in excessive risk taking at the expense of policyholders who, in turn, are less willing to pay for insurance coverage. Solvency regulation addresses this incentive problem by restricting the set of investment strategies and premiu...

OBJECTIVES The widespread adoption of health information technology (IT) will help contain health care costs by decreasing inefficiencies in healthcare delivery. Theoretically, health IT could lower hospitals' malpractice insurance premiums (MIPs) and improve the quality of care by reducing the number and size of malpractice. This study examines the relationship between health IT investment and...

In the trading operation of dynamic portfolio insurance, TIPP (Time Invariant Portfolio Protection), when adjusting active assets, only considers the scale of asset of that time regardless of how market trend proceeds. In other words, TIPP is clumsy in evading loss and pursuing profits. This study makes use of the predictability of artificial neural network, via market trend analysis and the le...

We seek the optimal dynamic consumption, investment, and insurance strategies for an individual who seeks to maximize her expected discounted utility of consumption and bequest over a fixed or random horizon, such as her random future lifetime. Thus, we incorporate an insurable loss and random horizon into the classical consumption and investment framework of Merton. We determine that if the pr...

This paper explores the risks faced by South African life insurance companies arising from the provision of investment guarantees in products sold. The current thinking and practice of the larger South African life insurance companies regarding investment guarantees is set out following their responses to a survey. The paper examines the forms of investment guarantee available and the business ...

Term insurance Term insurance is what comes to mind when most people contemplate an insurance policy. In this situation, the insured pays a premium to the insurance company on a monthly or yearly basis. These premiums entitle the insured to be paid a benefit in the event of death. The typical policy is applied over a defined period of time. In most instances, the term of the policy is between 1...