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on Insurance Economics |
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Issue of 2009‒03‒07
three papers chosen by Soumitra K Mallick Indian Institute of Social Welfare and Bussiness Management |
| By: | Tomi Kyyrä; Parrotta Pierpaolo; Rosholm Michael |
| Abstract: | We consider the consequences of working part-time on supplementary unemployment insurance benefits in the Danish labour market. Following the ?timing-of-events? approach we estimate causal effects of subsidized part-time work on the hazard rate out of unemployment insurance benefit receipt. We find evidence of a negative lock-in effect and a positive post-treatment effect, both of which vary across individuals. The resulting net effect on the expected unemployment duration is positive for some groups (e.g. married women) and negative for others (e.g. young workers). JEL classification numbers: C41, 65 |
| Keywords: | Unemployment benefits, part-time work, lock-in effect, treatment effect, duration analysis |
| JEL: | C41 J65 |
| Date: | 2009–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:fer:wpaper:1&r=ias |
| By: | Iman van Lelyveld; Franka Liedorp; Manuel Kampman |
| Abstract: | We analyse the effect of failing reinsurance cover on the stability of Dutch insurers. As insurers often reinsure themselves with other (re)insurers, losses could spread contagiously through the sector. Using a unique and confidential data set on reinsurance exposures, we perform a scenario analysis to measure contagion risks. Based on current exposures, we find no evidence of systemic risk in the Netherlands, even if multiple reinsurance companies fail simultaneously. Next, we analyse to what extent the financial position of individual primary insurers is affected following a particular shock, considering solvency, capital and profit levels. The life insurance industry is hardly affected by reinsurance failures. The non-life industry, however, is vulnerable to a crisis in the European reinsurance market. We also find that members of smaller insurance groups are particularly exposed. |
| Keywords: | reinsurance; contagion; simulation. |
| JEL: | G20 G22 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:201&r=ias |
| By: | Kousky, Carolyn (Resources for the Future); Cooke, Roger M. (Resources for the Future) |
| Abstract: | Adapting to climate change will not only require responding to the physical effects of global warming, but will also require adapting the way we conceptualize, measure, and manage risks. Climate change is creating new risks, altering the risks we already face, and also, importantly, impacting the interdependencies between these risks. In this paper we focus on three particular phenomena of climate related risks that will require a change in our thinking about risk management: global micro-correlations, fat tails, and tail dependence. Consideration of these phenomena will be particularly important for natural disaster insurance, as they call into question traditional methods of securitization and diversification. |
| Keywords: | tail dependence, micro-correlations, fat tails, damage distributions, climate change |
| JEL: | Q54 G22 C02 |
| Date: | 2009–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-09-03&r=ias |