Competition between insurance companies for employees of a firm often increases the prices and reduces the availability of high-quality health plans offered to employees. An insurance company can reduce competition by signing an exclusive contract, which guarantees that the company is the only insurance provider. The study assesses whether exclusive contracts can alleviate the negative conseque...

This paper develops and tests a theory of insurers' choice of the mix of equity and liabilities. The role of equity in insurance markets (and in our model) is to back insurers' promises to pay claims when there is aggregate uncertainty, or dependence among risks. Depending on the nature of this aggregate uncertainty, the equity held by rms in a competitive insurance market may increase with ris...

The main challenge for any insurer/reinsurer has proved to be underwriting major refinery/Petrochemical risk. Insurers have already considered process risk management measures while accepting and evaluating the risks all over the world. Erstwhile petrochemical tariff was adopting experiencing methodology as basis for premium calculation in Iran. In the present de-tariff scenario decisions will ...

Efforts to raise US health-care productivity have proceeded slowly, potentially due the fragmentation of payment across insurers. Each insurer’s efforts improve care could influence how doctors practice for other insurers, leading unvalued externalities. We study a randomized letter intervention by Medicare curtail overuse antipsychotics. The letters did not mention private insurance but reduce...

The regulatory stringency of New York insurance law, along with its extraterritorial application, makes it unique among state regulatory jurisdictions. This is the first study to simultaneously examine the relation between a broad array of firm-specific characteristics and the probability of being licensed in New York. We make predictions about expected characteristics of New York licensed life...

Introduction/backgroundAustralian osteopaths predominately work in private practice. The vast majority of patients who present to fund their own care, with many receiving a rebate through health insurance cover. While there is little that describes the relationship between Australian osteopathy profession and insurers, such information could provide an opportunity for insurers improve coverage ...

the conventional theory of adverse selection is not supported by most of the empirical works. these studies conclude that low-risk individuals demand more insurance services than high-risks. they refer to this situation as advantageous selection theory. this theory states that loss ratio of insureds may be lower than the population loss ratio while the conventional theory of adverse selection c...

In the insurance market, the insurers who provide catastrophe insurance face with the risk of rare, but huge catastrophe claims. The introduction of catastrophe related securities into the marketplace provide the insurers the instruments to hedge some of the catastrophe risks they are facing. A catastrophe related security is tied to the prespecified catastrophe claims, while independent to oth...

The insurance industry is known to have high operating expenses in the financial services sector. Insurers, investors and regulators are interested in models to understand the behavior of expenses. However, the current practice ignores skewness, occasional negative values as well as their temporal dependence. Addressing these three features, this paper develops a longitudinal model of insurance...