|
on Insurance Economics |
|
Issue of 2008‒01‒12
five papers chosen by Soumitra K Mallick Indian Institute of Social Welfare and Bussiness Management |
| By: | Roland Kirstein (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Annette Kirstein (University of Karlsruhe); Hans Gerhard (Saarland University) |
| Abstract: | In this paper, we analyze the impact of Bad Debt Loss Insurance on settlement outcomes. A huge success in a settlement or trial can turn into a disaster when the defendant goes bankrupt before paying the plaintiff’s claim. “Rainmakers” face the following dilemma: the greater the success, the greater the defendant’s bankruptcy risk. The starting point of our paper is a simple trial and litigation model with perfect and complete information. We add the possibility of a defendant’s bankruptcy, and of buying Bad Debt Loss Insurance for both the settlement and the trial stage. We demonstrate that trial insurance and settlement insurance have different impacts on the predicted outcome of settlement negotiations. Trial insurance tends to increase the settlement result; therefore, it generates a contract rent for the insurer and the insured. Settlement insurance, however, may have the opposite effect, as it decreases the settlement result. |
| Keywords: | Strategic Insurance, British Cost Allocation Rule, Nash Bargaining Solution |
| JEL: | K41 C78 G22 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:08002&r=ias |
| By: | Muthi Samudram (Monash University) |
| Abstract: | This study reviews the development of the banking and insurance sectors in Malaysia since the 1980s, with a particular attention to the effects and sequencing of the various reforms as well as the impact of services trade liberalization and related commitments. |
| Keywords: | Service Trade, Malaysia |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4007&r=ias |
| By: | Dilli Raj Khanal (Institute for Policy Research and Development) |
| Abstract: | This paper draws from three country case studies of the liberalization and development of the banking and insurance service sectors in Bangladesh, Nepal and Malaysia undertaken as part of an ARTNeT regional study on trade in services led by the author. |
| Keywords: | Service Trade, Bangladesh,Nepal, Malaysia |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:4107&r=ias |
| By: | Dilli Raj Khanal (Institute for Policy Research and Development) |
| Abstract: | This study reviews the development of the banking and insurance sectors in Nepal and the effect of reforms and commitments linked to these sectors since the 1980s, when financial sector liberalization in Nepal began with deregulation of the interest rate structure and opening of the banking sector to foreign investors. |
| Keywords: | Service Trade, Nepal |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:3907&r=ias |
| By: | Salahuddin Ahmad; Dilli Raj Khanal (Uttara University) |
| Abstract: | This study assesses the strengths and weaknesses of reforms in the banking and insurance industries. Banking sector performance is analysed using various indicators as well as Principle Component Analysis techniques. A comparative case study of three banks with different ownership structures is presented. The study concludes with important conclusions and policy implications for future reforms based on the findings. |
| Keywords: | Service Trade, Bangladesh |
| JEL: | F1 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:3807&r=ias |