nep-ias New Economics Papers
on Insurance Economics
Issue of 2017‒04‒09
three papers chosen by
Soumitra K. Mallick
Indian Institute of Social Welfare and Business Management

  1. Does Public Health Insurance Increase Maternal Health Care Utilization in Egypt By Mesbah Sharaf; Ahmed Rashad; Elhussien I. Mansour
  2. Insurance and Insurance Markets By Dionne, Georges; Harrington, Scott
  3. Fair valuation of insurance liabilities: Merging actuarial judgement and market-consistency By Jan Dhaene; Ben Stassen; Karim Barigou; Daniël Linders; Ze Chen

  1. By: Mesbah Sharaf; Ahmed Rashad (Frankfurt School of Finance and Management, Germany); Elhussien I. Mansour
    Abstract: We assess the impact of health insurance on the utilization of maternal health care services in Egypt. A propensity score matching is used to control for baseline differences in the characteristics of the insured and uninsured women, to determine the difference in health care utilization between the two groups that is attributed solely to the health insurance coverage. The results yield that the national health insurance has a strong positive impact on most of the maternal healthcare indicators. Public health insurance coverage increases the likelihood of receiving antenatal care by about 7%, delivering in a public health facility by 8%, and the likelihood that a newborn receive vitamin A dose after delivery by 8.2%. However, women who are less educated, from a poor household, and rural regions, are less likely to be covered by a health insurance. The findings of this study would guide intervention measures that aim at improving health care utilization especially among the poor and other vulnerable groups.
    Date: 2017–03–30
  2. By: Dionne, Georges (HEC Montreal, Canada Research Chair in Risk Management); Harrington, Scott (University of Pennsylvania)
    Abstract: Kenneth Arrow and Karl Borch published several important articles in the early 1960s that can be viewed as the beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the insurance literature and then summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and adverse selection. It then turns to financial pricing models of insurance and to analyses of price volatility and underwriting cycles; insurance price regulation; insurance company capital adequacy and capital regulation; the development of insurance securitization and insurance-linked securities; and the efficiency, distribution, organizational form, and governance of insurance organizations.
    Keywords: Insurance; insurance market; risk sharing; moral hazard; adverse selection; demand for insurance; financial pricing of insurance; price volatility; insurance regulation; capital regulation; securitization; insurance-linked security; organization form; governance of insurance firms.
    JEL: D80 D81 D82 G22 G30
    Date: 2017–03–30
  3. By: Jan Dhaene; Ben Stassen; Karim Barigou; Daniël Linders; Ze Chen
    Abstract: In this paper, we investigate a single period framework for the fair valuation of the liabilities related to an insurance policy or portfolio.We de ne a fair valuation as a valuation which is both market-consistent (mark-to-market for hedgeable claims)and actuarial (mark-to-model for unhedgeable claims). We introduce the class of hedge-based valuations, where in a rst step of the valuation process, a best hedge for the liability is set up, based on the traded assets in the market, while in a second step, the remaining part of the claim is valuated via an actuarial valuation. We also introduce the class of two-step valuations, the elements of which are closely related to the two-step valuations which were introduced in Pelsser and Stadje (2014). We show that the 3 classes of fair, hedge-based and two-step valuations are identical.
    Keywords: Fair valuation of insurance liabilities, market-consistent valuation, actuarial valuation, Solvency II, mean-variance hedging
    Date: 2017

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