nep-ias New Economics Papers
on Insurance Economics
Issue of 2018‒10‒29
fourteen papers chosen by
Soumitra K. Mallick
Indian Institute of Social Welfare and Business Management

  1. Priorities and challenges accessing health care among female migrants By Lattof, Samantha R.; Coast, Ernestina; Leone, Tiziana
  2. Crop Insurance and its Link to Yield Variability By Connor, Lawson; Katchova, Ani
  3. Guilds and mutual protection in England By Wallis, Patrick
  4. Understanding spatial distribution of loss ratios in federal crop insurance program By Chen, Zhangliang
  5. Policy Changes in Federal Crop Insurance and Implications for Adverse Selection and Moral Hazard By Bouchard, Dylan D.
  6. Hours risk, wage risk, and life-cycle labor supply By Jessen, Robin; König, Johannes
  7. Is Organic Farming Risky? Overcoming Crop Insurance Barriers to Expanding Organic Food Production and Markets By Belasco, Eric
  8. Promoting Readiness of Minors in Supplemental Security Income (PROMISE): Arkansas PROMISE Process Analysis Report By Todd Honeycutt; Brittney Gionfriddo; Jacqueline Kauff; Joseph Mastrianni; Nicholas Redel; Adele Rizzuto
  9. Compulsory versus Voluntary Insurance: An Online Experiment By Zhang, Peilu; Palma, Marco A.
  10. Social Protection Systems in Latin America and the Caribbean: Ecuador By Mariana Naranjo Bonilla
  11. Solvency tuned premium for a composite loss distribution By Alexandre Brouste; Anis Matoussi; Tom Rohmer; Christophe Dutang; Vanessa Désert; Erwan Gales; Pierre Golhen; Bérengère Milleville; Willie Lekeufack
  12. The Effects of Flood Insurance on Housing Markets By Indaco, Agustín; Ortega, Francesc; Taspinar, Süleyman
  13. The recent evolution of unemployment benefits in Italy By Federico Giorgi
  14. Securing Funds for the Proposed NHS Multi-year Funding: The Feasibility of Using a Hypothecated Tax By Timmins, N.

  1. By: Lattof, Samantha R.; Coast, Ernestina; Leone, Tiziana
    Abstract: Women’s ability to access health care requires access to and control of resources as well as the ability to make personal health decisions. Female migrants may experience additional challenges in accessing health care due to marginalization and vulnerability resulting from both their gender and their migrant status. Rural-to-urban migrant women working in the informal sector, such as Ghana’s head porters (kayayei), experience exclusion from the health system, risk of being uninsured, and poor health outcomes. Kayeyei’s survival needs (e.g., food, water) and a need to provide for their families can mean that migrant kayayei avoid health care expenses for illnesses or injuries. To ensure equal access to health care for migrant and non-migrant populations, health insurance is crucial. Yet, improving access to health care and service uptake requires more than health insurance. Incorporating culturally-appropriate care into the provision of health services, or even developing specific migrant-friendly health services, could improve health service uptake and health awareness among migrants. Public health systems should also take account of migrants’ financial situations and priorities in the design and delivery of health services
    Keywords: Health insurance; health care-seeking behavior; determinants; perceptions; poverty; access; urban health; gender; informal sector; population movement; migration; Ghana
    JEL: N0
    Date: 2018–09–13
  2. By: Connor, Lawson; Katchova, Ani
    Keywords: Risk and Uncertainty, Ag Finance and Farm Management, Production Economics
    Date: 2018–06–20
  3. By: Wallis, Patrick
    Abstract: Guilds made an important contribution to the provision of mutual welfare to their members in the Netherlands and some other parts of Europe, giving their members entitlements to support and assistance during periods of unemployment, sickness or disability. This paper explores the role guilds played in mutual insurance in early modern England. A study of the rules and practices of a range of guilds from London and provincial towns indicates that craft guilds in England had no visible involvement in providing mutual insurance during the sixteenth to the eighteenth centuries. They did, however, provide substantial volumes of charity, much of which was directed to members of the guild who fell into poverty. Mutual insurance emerged on a large scale in England with the Friendly Societies. However, there is no evidence that these Societies had any direct or indirect connection to craft guilds, except in seeking to project a form of conceptual kinship with a medieval fraternal past.
    Keywords: guilds; insurance; friendly societies; charity; London; England; early modern
    JEL: D02 D64 L22 N33 N43
    Date: 2018–10–01
  4. By: Chen, Zhangliang
    Keywords: Ag Finance and Farm Management, Food and Agricultural Policy Analysis, Agribusiness Economics and Management
    Date: 2018–06–20
  5. By: Bouchard, Dylan D.
    Keywords: Risk and Uncertainty, Production Economics, Food and Agricultural Policy Analysis
    Date: 2018–06–20
  6. By: Jessen, Robin; König, Johannes
    Abstract: We decompose permanent earnings risk into contributions from hours and wage shocks. In order to distinguish between hours shocks and labor supply reactions to wage shocks we use a life-cycle model of consumption and labor supply. Estimating our model with the Panel Study of Income Dynamics (PSID) shows that both permanent wage and hours shocks play an important role in explaining the cross-sectional variance in earnings growth, but wage risk has greater relevance. Allowing for hours shocks improves the model fit considerably. The empirical strategy allows for the estimation of the Marshallian labor supply elasticity without the use of consumption or asset data. We find this elasticity on average to be negative, but small. The degree of consumption insurance implied by our results is in line with recent estimates in the literature.
    Keywords: earnings risk,wage risk,Frisch elasticity,Marshallian elasticity,consumption insurance
    JEL: D31 J22 J31
    Date: 2018
  7. By: Belasco, Eric
    Keywords: Food and Agricultural Marketing, Agribusiness Economics and Management, Food and Agricultural Policy Analysis
    Date: 2018–06–20
  8. By: Todd Honeycutt; Brittney Gionfriddo; Jacqueline Kauff; Joseph Mastrianni; Nicholas Redel; Adele Rizzuto
    Abstract: This report presents findings on the implementation and operation of the Arkansas PROMISE program, which was designed to (1) provide educational, vocational, and other services to SSI youth and their families and (2) improve service coordination among state and local agencies serving that population.
    Keywords: disability, SSI, youth, employment, education, PROMISE
    JEL: I J
  9. By: Zhang, Peilu; Palma, Marco A.
    Keywords: Experimental Economics, Risk and Uncertainty, Behavioral & Institutional Economics
    Date: 2018–06–20
  10. By: Mariana Naranjo Bonilla (IPC-IG)
    Abstract: "Over the past three decades, the Ecuadorian social protection system has been characterised by universal interventions in the education and health care sectors, along with the implementation of specific social welfare programmes targeted at the poorest populations, such as the Bono de Desarrollo Humano (Human Development Bonus?BDH) and a welfare pension for persons with disabilities. Although Ecuador has managed to expand its social infrastructure and the populations health and education have improved, the redistributional effects of social policies have been limited, especially among rural and marginalised urban populations in the major cities of the country."(...)
    Keywords: Social Protection Systems, Latin America, the Caribbean, Ecuador
    Date: 2018–10
  11. By: Alexandre Brouste (LMM - Laboratoire Manceau de Mathématiques - UM - Le Mans Université); Anis Matoussi (Département de Mathématiques [Le Mans] - UM - Le Mans Université); Tom Rohmer (LMM - Laboratoire Manceau de Mathématiques - UM - Le Mans Université); Christophe Dutang (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique); Vanessa Désert (IRA - Institut du Risque et de l'Assurance, Le Mans, MMA - Mutuelles du Mans Assurances); Erwan Gales (MMA - Mutuelles du Mans Assurances); Pierre Golhen (MMA - Mutuelles du Mans Assurances); Bérengère Milleville (MMA - Mutuelles du Mans Assurances); Willie Lekeufack (MMA - Mutuelles du Mans Assurances, ISFA - Institut de Science Financière et d'Assurances)
    Abstract: A parametric framework is proposed to model both attritional and atypical claims for insurance pricing. This model relies on a classical Generalized Linear Model for attritional claims and a non-standard Generalized Pareto distribution regression model for atypical claims. Maximum likelihood estimators (closed-form for the Generalized Linear Model part and computed with Iterated Weighted Least Square procedure for the Generalized Pareto distribution regression part) are proposed to calibrate the model. Two premium principles (expected value principle and standard deviation principle) are computed on a real data set of fire warranty of a corporate line-of-business. In our methodology, the tuning of the safety loading in the two premium principles is performed to meet a solvency constraint so that the premium caps a high-level quantile of the aggregate annual claim distribution over a reference portfolio.
    Keywords: commercial lines,non-life insurance,pricing,composite distribution,solvency criterion
    Date: 2018–09–28
  12. By: Indaco, Agustín (CUNY Graduate Center); Ortega, Francesc (Queens College, CUNY); Taspinar, Süleyman (Queens College, CUNY)
    Abstract: We analyze the role of food insurance on the housing markets of coastal cities. To do so we have assembled a parcel-level dataset including the universe of residential sales for three coastal urban areas in the United States – Miami-Dade county (2008- 2015), New York city (2003-2016), and Virginia Beach (2000-2016) – matched with their FEMA food maps, which characterize the food risk level for each property. First, we compare trends in housing values and sales activity among properties on the foodplain, as defined by the National Flood Insurance Program (NFIP), relative to properties located elsewhere within the same city. Despite the heightened food risk in the last two decades, we did not find evidence of divergent trends, suggesting that food insurance may have cushioned the effects of the increase in food risk. Secondly, we analyze the effects of the recent reforms to the NFIP. In 2012 and 2014, Congress passed legislation that led to important increases in insurance premia and updates of food maps. We fail to find an effect of increases in premia on the values of foodplain properties in Virginia Beach and Miami-Dade, but we do find evidence of an effect in New York coinciding with the aftermath of hurricane Sandy. We also find some evidence of price changes for properties that experienced a change in risk classification in the new FEMA food maps. We conclude that the full effects of the 2012-2014 food insurance reforms have not yet taken place but will probably materialize in the future.
    Keywords: climate change, real estate, cities, flood insurance
    JEL: H56 K42 R33
    Date: 2018–09
  13. By: Federico Giorgi (Bank of Italy)
    Abstract: At the onset of the crisis, the Italian system of income support measures was characterized by a high level of heterogeneity and there was little recourse to active labour market policies and activation programmes. The measures provided only a few basic guarantees which were limited to certain sectors and types of firm. The duration of any subsidies varied considerably according to a firm’s age, geographical location, and the type of support available. The reforms of 2012 and 2015 introduced significant innovations, which aim to make the system more universal and to provide better cover in the event of loss of employment so that the basic level of support is more generous and linked to previous social security contributions and not to any of the other characteristics of the worker or of the firm. The reforms also promote greater recourse to active policies and activation programmes. The first goal has substantially been achieved. However the path towards the second, more difficult, objective has only just been started with the establishment of ANPAL. We find, therefore that the number of persons receiving support, but apparently not immediately available to work, remains high.
    Keywords: unemployment benefits, unemployment, labour market
    JEL: J64 J65
    Date: 2018–10
  14. By: Timmins, N.
    Abstract: In June 2018 the UK Government announced an increase of 3.4% per annum in spending on the NHS in England for each of three years. It indicated that taxes will rise to pay for this. Debate has increased as to whether a separate (hypothecated) tax should be introduced to fund the NHS. The Kings Fund has published this [year]( on the topic. OHE published an academic review sometime [ago]( This OHE publication by Nick Timmins, a senior fellow at the [Institute for Government]( and the [Kings Fund](, sets out arguments in favour and against. It is based on the seminar he gave at OHE in July 2018. The issues he explores include - - The argument that hypothecation will bring greater stability, transparency and public support; - Which tax(es) might be suitable? - Possible distortions in public expenditure that might result; - Dealing with shortfalls and surpluses; - UK experiences of revenue hypothecation in the past, distinguishing soft (non-binding) approaches such as Vehicle Excise Duty, and hard (binding) pots such as National Insurance, neither of which have held. He concludes by quoting a John Appleby [blog]( argues that the key decision is to agree (or not) to spend more money on the NHS. Creating a new tax is a distraction from this.
    Keywords: Other
    JEL: I1
    Date: 2018–10–01

This nep-ias issue is ©2018 by Soumitra K. Mallick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.