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on Insurance Economics |
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Issue of 2020‒03‒16
fifteen papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | Lee, Jun Yeong (Iowa State University); Winters, John V. (Iowa State University) |
| Abstract: | This paper examines effects of state Medicaid Expansion via the Affordable Care Act on the self-employed. We first examine impacts on the probability of self-employment and find no significant effect. We then examine the probability of having health insurance and the type of coverage for self-employed persons. Medicaid expansion increased overall health insurance coverage rates, with especially large impacts for the unincorporated self-employed. Medicaid expansion also increased the probability of Medicaid coverage as expected, but there is evidence of crowd out of other types of coverage. Impacts on health insurance rates of the self-employed also strengthened over time. |
| Keywords: | health insurance, self-employed, Affordable Care Act, state Medicaid expansion |
| JEL: | H51 I13 L26 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12997&r=all |
| By: | Pinka Chatterji; Sandra Decker; Jason U. Huh |
| Abstract: | The objective of this study is to use data from the National Survey of Children with Special Health Care Needs (NS-CSHCN) to test whether Medicaid physician fees are correlated with access to health services and adequacy of insurance coverage among CSHCN. We use a difference-in-differences method, comparing the effects of Medicaid physician fees on outcomes of publicly-insured children in states that raised fees vs. in states that did not. We also consider a triple difference specification using privately-insured children as the comparison group. Our findings indicate that raising the Medicaid primary care fee level close to at least 90 percent of the Medicare level reduces the likelihood that publicly-insured CSHCN lack a usual source of care in a doctor’s office by about 15 percent. Fee increases are also associated with improved access to specialty doctor care, and large improvements in caregivers’ satisfaction with the adequacy of health insurance coverage, among publicly-insured CSHCN. Results for some other access measures, such as global measures of having difficulties and delays accessing services, were mixed. |
| JEL: | I1 I13 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26769&r=all |
| By: | Sarah Gollust; Pinar Karaca-Mandic |
| Abstract: | The goals of this project were to analyze characteristics of the population exposed to media messages related to the Affordable Care Act (ACA) (including television news and advertisements aired by both insurance and political sponsors) during the first open enrollment period of the health insurance marketplace (in October 2013-March 2014) and to assess whether geographic variation in media volume in an individual’s media market of residence is associated with health insurance coverage. Specifically, we estimated individual-level models of insurance coverage to test whether market-level measures of media are associated with the likelihood of a person having health insurance and of having Medicaid coverage, using the 2013-2014 individual ACS files. We found evidence of a significant association, with higher volume of insurance-related ads aired associated with declines in uninsurance in 2014. The study has two specific benefits for Census. By demonstrating the utility of merging media data with Census data to examine insurance outcomes, the project provides a proof of concept that Census data can be used to examine media market-level exposures on Census outcomes (Criterion 3). We also produced estimates of the characteristics of the population of people exposed to media (Criterion 11), answering the policy-relevant research question of whether the volume of media messages was associated with changes in insurance enrollment from 2013 (pre-ACA) to 2014 (post-ACA). |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:cen:tnotes:20-02&r=all |
| By: | Ceballos, Francisco; Kramer, Berber |
| Abstract: | Production risk is pervasive in agriculture, yet smallholder farmers lack access to quality insurance. This is due to asymmetric information in markets for indemnity insurance, and high basis risk, limited trust, and poor understanding of index-based insurance. Digital technologies can help overcome these challenges by improving crop monitoring and yield prediction, allowing insurers to provide products that move towards indemnity insurance. Although this can potentially improve demand, it also comes at the risk of introducing adverse selection. We analyze this trade-off by eliciting willingness to pay for both index-based insurance and picture-based insurance (PBI) for visible crop damage through incentivized auctions with smallholder farmers in northwestern India. Participants reveal a higher willingness to pay for PBI than for index-based coverage. Although at commercial rates, demand remains low for either product, PBI improves demand at the subsidized premium levels maintained by India’s national insurance scheme. Moreover, we find no evidence of adverse selection. We conclude that digital technologies can facilitate a shift from index-based insurance to indemnity insurance. By reducing basis risk and strengthening trust and understanding, this can improve demand for crop insurance. |
| Keywords: | INDIA, SOUTH ASIA, ASIA, willingness to pay, technology, crop insurance, mobile equipment, risk, mobile telephones, photography, insurance, assessment, innovation, losses, digital technology, mobile technology, adverse selection, G22 Insurance, Insurance Companies, Actuarial Studies, O13 Economic Development: Agriculture, Natural Resources, Energy, Environment, Other Primary Product, O16 Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance, Q14 Agricultural Finance, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1890&r=all |
| By: | Giupponi, Giulia |
| Abstract: | I estimate the long-run income effect of welfare transfers on individual labor supply. Using Italian administrative data on the universe of survivor insurance recipients, I implement a regression discontinuity design around a change in survivor insurance generosity based on the spouse's death date. I find that survivors fully offset the benefit loss with increases in earnings. Labor force participation and program substitution are the main margins of adjustment. I consider potential explanations for the large income effect. Evidence suggests that the value of additional income in the widowhood state is large, driving large participation responses to survivor benefit cuts. |
| Keywords: | income effect; labor supply; valuation of welfare transfers |
| JEL: | H55 I38 J22 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:103424&r=all |
| By: | Asongu, Simplice A; Odhiambo, Nicholas M |
| Abstract: | This study assesses how enhancing information and communication technology (ICT) affects life insurance and non-life insurance in a panel of forty-eight African countries with data for the period 2004-2014. The adopted ICT dynamics are: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on Generalized Method of Moments. The results show that enhancing mobile phone penetration and fixed broadband subscriptions has a positive net effect on life insurance consumption while enhancing fixed broadband subscriptions also has a positive net impact of on non-life insurance penetration. |
| Keywords: | Insurance; Information technology |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:26327&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon) |
| Abstract: | This article examines the relevance of information and communication technology (ICT) in modulating the effect of education on life insurance and non-life insurance consumption in 48 African countries for the period 2004-2014. Education is measured with primary school, secondary school and tertiary school enrollments. ICT is measured with mobile phone, internet and broadband subscriptions. The empirical evidence is based on generalized method of moments. The following main findings are established. First, from the nexuses between education, ICT and life insurance, there are positive conditional effects from the interaction between: (i) broadband subscriptions and primary school enrollment; (ii) broadband subscriptions and secondary school enrollment and (iii) internet penetration and tertiary school enrollment. Second, from the nexuses between education, ICT and non-life insurance: (i) there is a negative net effect from the interactions between mobile phone penetration and primary education while positive net effects are apparent from the interactions between: mobile phone penetration and secondary school enrollment; secondary school enrollment and broadband subscriptions and; tertiary school enrollment and broadband subscriptions. |
| Keywords: | Education; Technology; Insurance |
| JEL: | I28 I20 I30 O16 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:19/048&r=all |
| By: | Samuel Monteiro (I&P - Investisseurs et Partenaires) |
| Abstract: | Using a unique database of 204 employees in Senegal, this paper seeks to understand the determinants leading to the choice to enroll (or not) in a health insurance plan. To answer this question, we created three surveys to test certain preferences (time preference and risk aversion) and the role of information. In this paper, we show that Senegalese employees have a very strong preference for the present and a low aversion to loss, which could cause them to not take out insurance. We find that access to information on health insurance plays an essential role in the willingness to enroll. While 12% of employees who received no information about health insurance said they would not want to be insured if they could choose, this proportion dropped to 2% among employees who received positive information about health insurance. These results are econometrically confirmed when controlling for other factors such as gender, age and education. These results show the importance of information on people's perception of health insurance. It is therefore essential to communicate on the functioning of health insurance and the benefits of being covered in order to strengthen adherence to a health insurance system. |
| Keywords: | Health insurance,Risk aversion,Time preferences,Information,Africa |
| Date: | 2019–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02493397&r=all |
| By: | Joao A. C. Santos; Stavros Peristiani (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | The recent financial crisis caused the largest rise in the number of bank failures since the unprecedented banking crisis of the 1980s and early 1990s. This post examines how depositors responded to the amplified risks of bank failure over the last three decades. We show that uninsured depositors discipline troubled banks by withdrawing their funds. Focusing on the recent financial crisis, we find that banks experienced an outflow of uninsured time deposits after the near-failure of Bear Stearns and bankruptcy of Lehman Brothers. This depositor risk sensitivity subsided after the Federal Deposit Insurance Corporation (FDIC) introduced the Transaction Guarantee Account program in October 2008, which raised the maximum deposit insurance limit from $100,000 to $250,000. |
| Keywords: | financial crisis; bank failures; Market discipline |
| JEL: | G2 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:86938&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | Purpose –This study investigates the role of financial access in moderating the effect of governance on insurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014. Design/methodology/approach – Two life insurance indicators are used, notably: life insurance and non-life insurance. Six governance measurements are also used, namely: political stability, “voice & accountability†, government effectiveness, regulation quality, corruption-control and the rule of law. The empirical evidence is based on the Generalised Method of Moments (GMM) and Least Squares Dummy Variable Corrected (LSDVC) estimators. Findings –Estimations from the LSDVC are not significant while the following main findings are established from the GMM. First, financial access promotes life insurance through channels of political stability, “voice & accountability†, government effectiveness, the rule of law and corruption-control. Second, financial access also stimulates non-life insurance via governance mechanisms of political stability, “voice & accountability†, government effectiveness, regulation quality, the rule of law and corruption-control. Originality/value – This research complements the sparse literature on insurance promotion in Africa by engaging the hitherto unexplored role of financial access through governance channels. |
| Keywords: | Insurance; Finance; Governance; Sub-Saharan Africa |
| JEL: | I28 I30 G20 O16 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:19/044&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria); Paul N. Acha-Anyi (Walter Sisulu University, South Africa) |
| Abstract: | Purpose –This study investigates the role of ICT in modulating the effect of governance on insurance penetration in 42 sub-Saharan African countries using data for the period 2004-2014. Design/methodology/approach –Two insurance indicators are used in the analysis, namely: life insurance and non-life insurance. The three ICT modulating dynamics employed include: mobile phone penetration, internet penetration and fixed broadband subscriptions. Six governance channels are also considered, namely: political stability, “voice & accountability†, regulation quality, government effectiveness, the rule of law and corruption-control. The empirical evidence is based on generalized method of moments. Findings –The following main findings are established. First, mobile phone penetration does not significantly modulate governance channels to positively affect life insurance while it effectively complements “voice & accountability†to induce a positive net effect on non-life insurance. Second, internet penetration complements: (i) governance dynamics of political stability, government effectiveness and rule of law to induce positive net effects on life insurance: and (ii) corruption-control for an overall positive effect on non-life insurance. Third, the relevance of fixed broadband subscriptions in promoting life insurance is apparent via governance channels of regulation quality, government effectiveness and the rule of law while fixed broadband subscriptions do not induce significant overall net effects on non-life insurance though the conditional effects are overwhelmingly significant. Orginality/value – To the best our knowledge, studies on the relevance of ICT in promoting insurance consumption through governance channels are sparse, especially for a region such as sub-Saharan Africa where insurance penetration is low compared to other regions of the world. |
| Keywords: | Africa; ICT; Governance; Insurance |
| JEL: | G20 I28 I30 L96 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:19/043&r=all |
| By: | Cockx, Bart (Ghent University); Declercq, Koen (KU Leuven); Dejemeppe, Muriel (Université catholique de Louvain); Inga, Leda (University of Luxembourg); Van der Linden, Bruno (IRES, Université catholique de Louvain) |
| Abstract: | This paper evaluates the impact on the transition to work of a policy reform in Belgium that restricted the access to a specific unemployment insurance scheme for young labor market entrants. This scheme entitles youths with no or little labor market experience to unemployment benefits after a waiting period of one year. As of 2015, the Belgian government unexpectedly scrapped benefit eligibility for youths who start the waiting period at the age of 24 or older. The reform implied a change from an inclining to a flat rate (zero-level) benefit profile. We use a difference-in-differences approach to identify the causal impact of this reform on fresh university graduates. Our main finding is that this reform only increases the transition to very short-lived jobs. |
| Keywords: | youth unemployment, unemployment insurance, policy evaluation, difference-in-differences |
| JEL: | J64 J65 J68 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13002&r=all |
| By: | Corina ENACHE ("CAROL I" National Defense University, Chief of Office/Medical Directorate, Bucharest, Romania) |
| Abstract: | European states currently implement two sets of accounting standards: national accounting standards and International Financial Reporting Standards. International financial reporting standards require clear, precise and common rules for everyone involved at the international level. International accounting standards were the first international accounting standards developed by International Accounting Standards Committee, created in 1973. Currently, 16 IFRS and 29 IAS are in use. Starting with 2021, a new IFRS, called IFRS 17 Insurance Contracts, will become active. The reform of the international public sector has brought a series of changes including the elaboration of International Public Sector Accounting Standards, especially, in the European space. |
| Keywords: | international financial reporting standards; international accounting standards; international public sector accounting standards |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:rom:km2019:15&r=all |
| By: | Jason Bram; James A. Orr |
| Abstract: | Every March, the Bureau of Labor Statistics releases benchmark revisions of state and local payroll employment for the preceding two years. While employment data are released monthly for all 50 states and many metropolitan areas, the monthly figures are estimated based on a sample of firms. The annual revisions are based on an almost complete count of workers (now available up through mid-2014) from the records of the unemployment insurance system and re-estimated data for the remainder of the year. In this post, we briefly summarize the mixed but mostly stronger performance in the region in 2014 indicated by these employment revisions. We highlight the most pronounced changes across our District?highlighted by New York City?s even stronger-looking boom?using the percentage change in total employment from the fourth quarter of 2013 to the fourth quarter of 2014 as the metric. |
| Keywords: | Employment Revisions New York New Jersey Puerto Rico |
| JEL: | R1 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:87016&r=all |
| By: | Ghosh, Ranjan Kumar; Gupta, Shweta; Singh, Vartika; Ward, Patrick S. |
| Abstract: | Researchers and policymakers have long understood the benefits of crop insurance but have been consistently disappointed by the poor performance of these programs. Rarely have programs seen sizeable take-up rates without support through large government subsidies, and in many countries, demand has been meager even at prices well below fair-market rates. Experiences from India have largely followed this trend, despite a number of large policy initiatives. Limited demand stems from low perceived value, arguably because the existing insurance products are unsuited to farmers’ needs. The present study fills an important gap in rural development by improving upon existing insurance policy design by incorporating product characteristics better suited to farmers’ preferences. To do so, we conducted a discrete choice experiment with agricultural households in four states in India. While farmers seem to like several of the features of policies offered under existing programs, our results suggest they would generally be willing to pay more than the highly subsidized rate they currently pay and are also clearly dissatisfied with delayed and uncertain indemnity payments and would be willing to pay a significant premium for more assured and timely payment delivery. |
| Keywords: | INDIA, SOUTH ASIA, ASIA, crop insurance, willingness to pay, agriculture, agricultural policies, subsidies, developing countries, farmers, discrete choice experiments, government subsidies, crop insurance program, Q10 Agriculture: General, Q11 Agriculture: Aggregate Supply and Demand Analysis, Prices, Q18 Agricultural Policy, Food Policy, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1820&r=all |