An Empirical Analysis of the Economic Impact of Federal Terrorism Reinsurance

OpenAIRE

Jeffrey R. Brown; J. David Cummins; Christopher M. Lewis; Ran Wei

2004-01-01

This paper examines the role of the federal government in the market for terrorism reinsurance. We investigate the stock price response of affected industries to a sequence of thirteen events culminating in the enactment of the Terrorism Risk Insurance Act (TRIA) of 2002. In the industries most likely to be affected by TRIA banking, construction, insurance, real estate investment trusts, transportation, and public utilities the stock price effect was primarily negative. The Act was at best va...

On the Concept and Definition of Terrorism Risk.

Science.gov (United States)

Aven, Terje; Guikema, Seth

2015-12-01

In this article, we provide some reflections on how to define and understand the concept of terrorism risk in a professional risk assessment context. As a basis for this discussion we introduce a set of criteria that we believe should apply to any conceptualization of terrorism risk. These criteria are based on both criteria used in other areas of risk analysis and our experience with terrorism risk analysis. That is, these criteria offer our perspective. We show that several of the suggested perspectives and definitions have weaknesses in relation to these criteria. A main problem identified is the idea that terrorism risk can be conceptualized as a function of probability and consequence, not as a function of the interactions between adaptive individuals and organizations. We argue that perspectives based solely on probability and consequence should be used cautiously or not at all because they fail to reflect the essential features of the concept of terrorism risk, the threats and attacks, their consequences, and the uncertainties, all in the context of adaptation by the adversaries. These three elements should in our view constitute the main pillars of the terrorism risk concept. From this concept we can develop methods for assessing the risk by identifying a set of threats, attacks, and consequence measures associated with the possible outcome scenarios together with a description of the uncertainties and interactions between the adversaries. © 2015 Society for Risk Analysis.

EXTREMUS - the German solution for act of terrorism - non-nuclear risks coverage

International Nuclear Information System (INIS)

Harbrucker, D.

2004-01-01

As a consequence of the terrorist attacks of September 11, 2001 and the withdraw of reinsurance capacity worldwide for terrorism coverage under material damage policies EXTREMUS was founded on September 2nd, 2002 by the German insurance industry (shareholders are 16 (re) insurance groups operating in the country). EXTREMUS offers a maximum limit per insured of Euro 1,5 bn. and enjoys a warranty of the German Government to cover accumulation losses in xs of Euro 2.0 bn. up to Euro 10 bn. EXTREMUS only intervenes for policies exceeding Euro 25 mio. due to a self obligation of the primary market to maintain full coverage for smaller risks. Due to the demand of reinsurers losses caused by a b c weapons are excluded. Coverage is not available for nuclear power plants. The paper aims to deals with these issues in more details.(author)

Risk-based decision making for terrorism applications.

Science.gov (United States)

Dillon, Robin L; Liebe, Robert M; Bestafka, Thomas

2009-03-01

This article describes the anti-terrorism risk-based decision aid (ARDA), a risk-based decision-making approach for prioritizing anti-terrorism measures. The ARDA model was developed as part of a larger effort to assess investments for protecting U.S. Navy assets at risk and determine whether the most effective anti-terrorism alternatives are being used to reduce the risk to the facilities and war-fighting assets. With ARDA and some support from subject matter experts, we examine thousands of scenarios composed of 15 attack modes against 160 facility types on two installations and hundreds of portfolios of 22 mitigation alternatives. ARDA uses multiattribute utility theory to solve some of the commonly identified challenges in security risk analysis. This article describes the process and documents lessons learned from applying the ARDA model for this application.

Confronting the risks of terrorism: making the right decisions

International Nuclear Information System (INIS)

John Garrick, B.; Hall, James E.; Kilger, Max; McDonald, John C.; O'Toole, Tara; Probst, Peter S.; Rindskopf Parker, Elizabeth; Rosenthal, Robert; Trivelpiece, Alvin W.; Van Arsdale, Lee A.; Zebroski, Edwin L.

2004-01-01

This report offers a methodology for assessing, quantitatively, the risks of terrorism. The purpose of the methodology is to support effective decision making to combat terrorism. The emphasis is on terrorist attacks that could have catastrophic consequences. The perspective taken is that in order to make the right decisions about combating terrorism, their needs to be a systematic means of assessing the likelihood of such attacks. A process of implementation of the decisions resulting from risk assessment is essential. That process includes (1) an understanding of the nature of the threat, (2) an information system linked directly to 'intelligence' on terrorism, and (3) organizational structures that can take timely, coordinated, and effective actions. There must also be sound evidence that the methodology can be successfully applied. A description of the nature of terrorism, a terrorism risk assessment methodology, information requirements to fight terrorism, and recommendations for successful implementation is what this report is about

Simple probabilistic method for relative risk evaluation of nuclear terrorism events

International Nuclear Information System (INIS)

Zhang Songbai; Wu Jun

2006-01-01

On the basis of the event-tree and probability analysis methods, a probabilistic method of nuclear terrorism risk was built, and the risk of terrorism events was analyzed. With the statistical data for and hypothetical data for relative events, the relative probabilities of the four kinds of nuclear terrorism events were obtained, as well as the relative risks of these four kinds of nuclear terrorism events were calculated by using this probabilistic method. The illustrated case show that the descending sequence of damages from the four kinds of nuclear terrorism events for single event is as following: nuclear explosive and improvised nuclear explosive, nuclear facility attacked, and 'dirty bomb'. Under the hypothetical condition, the descending sequence of possibilities for the four kinds of nuclear terrorism events is as following: 'dirty bomb', nuclear facility attacked, improvised nuclear explosive and nuclear explosive, but the descending sequence of risks is as following: 'dirty bomb', improvised nuclear explosive, nuclear facility attacked, and nuclear explosive . (authors)

Crop insurance: Risks and models of insurance

Directory of Open Access Journals (Sweden)

Čolović Vladimir

2014-01-01

Full Text Available The issue of crop protection is very important because of a variety of risks that could cause difficult consequences. One type of risk protection is insurance. The author in the paper states various models of insurance in some EU countries and the systems of subsidizing of insurance premiums by state. The author also gives a picture of crop insurance in the U.S., noting that in this country pays great attention to this matter. As for crop insurance in Serbia, it is not at a high level. The main problem with crop insurance is not only the risks but also the way of protection through insurance. The basic question that arises not only in the EU is the question is who will insure and protect crops. There are three possibilities: insurance companies under state control, insurance companies that are public-private partnerships or private insurance companies on a purely commercial basis.

Risk communication and radiological/nuclear terrorism: a strategic view.

Science.gov (United States)

Becker, Steven M

2011-11-01

It is now widely recognized that effective communication is a crucial element in radiological/nuclear terrorism preparedness. Whereas in the past, communication and information issues were sometimes viewed as secondary in comparison with technical concerns, today the need to improve risk communication, public information, and emergency messaging is seen as a high priority. The process of improving radiological/nuclear terrorism risk communication can be conceptualized as occurring in four overlapping phases. The first phase involves the recognition that communication and information issues will be pivotal in shaping how a radiological/nuclear terrorism incident unfolds and in determining its outcome. This recognition has helped shape the second phase, in which various research initiatives have been undertaken to provide an empirical basis for improved communication. In the third and most recent phase, government agencies, professional organizations and others have worked to translate research findings into better messages and informational materials. Like the first and second phases, the third phase is still unfolding. The fourth phase in risk communication for radiological/nuclear terrorism-a mature phase-is only now just beginning. Central to this phase is a developing understanding that for radiological/nuclear terrorism risk communication to be fully effective, it must go beyond crafting better messages and materials (as essential as that may be). This emerging fourth phase seeks to anchor radiological/nuclear communication in a broader approach: one that actively engages and partners with the public. In this article, each of the four stages is discussed, and future directions for improving radiological/nuclear terrorism risk communication are explored.

RISK CORRIDORS AND REINSURANCE IN HEALTH INSURANCE MARKETPLACES: Insurance for Insurers

OpenAIRE

LAYTON, TIMOTHY J.; MCGUIRE, THOMAS G.; SINAIKO, ANNA D.

2016-01-01

In order to encourage entry and lower prices, most regulated markets for health insurance include policies that seek to reduce the uncertainty faced by insurers. In addition to risk adjustment of premiums paid to plans, the Health Insurance Marketplaces established by the Affordable Care Act implement reinsurance and risk corridors. Reinsurance limits insurer costs associated with specific individuals, while risk corridors protect against aggregate losses. Both tighten the insurer's distribut...

THE PERCEIVED RISK OF TRAVELLING, WITH EMPHASIS ON TERRORISM

OpenAIRE

Stefanou, Areti

2009-01-01

Risk is an important factor when considering international tourism (Lepp and Gibson, 2003; Sonmez and Graefe, 1998b; 1998a; Sonmez, 1998), especially nowadays as a result of the increased magnitude and frequency of terrorism attacks when travelling. Such events have negatively affected individuals’ perceived risk in international travel, making terrorism risk a key element of the international travel scene. Perceived risk can influence a positive image, intention to travel to a particular des...

Relative risk perception for terrorism: implications for preparedness and risk communication.

Science.gov (United States)

Caponecchia, Carlo

2012-09-01

Terrorism presents a significant risk that is often approached at public policy, infrastructure, or emergency management level. Public perceptions of the likelihood of terrorist events, and how this may relate to individual preparedness, are not always extensively examined. The tendency to think that negative events are less likely to happen to oneself than to the average person is known as optimism bias. Optimism bias is relevant to perceptions of terrorism, because it is thought to be related to a reduction in precaution use. Using an online survey of 164 participants, this study aimed to determine whether Sydney residents thought they had a lower likelihood of experiencing terrorist events than other Australians. Significant optimism bias was observed for witnessing terrorist events, but not for personally experiencing terrorist events. In addition, Sydney residents tended to think that terrorist attacks were more likely to occur in Sydney than another major Australian city in the next five years. At the same time, household and workplace preparedness for terrorism was quite low, as was awareness of emergency strategies in the central business district. Perceptions of high likelihood of terrorism happening in one's own city, yet low preparedness present a challenge for risk communication and emergency management strategies. The diversity of possible terrorist targets, and the simple plans that can moderate the effects of a disaster may need to be emphasized in future anti-terrorism initiatives. © 2012 Society for Risk Analysis.

Insurance against climate change and flood risk: Insurability and decision processes of insurers

Science.gov (United States)

Hung, Hung-Chih; Hung, Jia-Yi

2016-04-01

1. Background Major portions of the Asia-Pacific region is facing escalating exposure and vulnerability to climate change and flood-related extremes. This highlights an arduous challenge for public agencies to improve existing risk management strategies. Conventionally, governmental funding was majorly responsible and accountable for disaster loss compensation in the developing countries in Asia, such as Taiwan. This is often criticized as an ineffective and inefficient measure of dealing with flood risk. Flood insurance is one option within the toolkit of risk-sharing arrangement and adaptation strategy to flood risk. However, there are numerous potential barriers for insurance companies to cover flood damage, which would cause the flood risk is regarded as uninsurable. This study thus aims to examine attitudes within the insurers about the viability of flood insurance, the decision-making processes of pricing flood insurance and their determinants, as well as to examine potential solutions to encourage flood insurance. 2. Methods and data Using expected-utility theory, an insurance agent-based decision-making model was developed to examine the insurers' attitudes towards the insurability of flood risk, and to scrutinize the factors that influence their decisions on flood insurance premium-setting. This model particularly focuses on how insurers price insurance when they face either uncertainty or ambiguity about the probability and loss of a particular flood event occurring. This study considers the factors that are expected to affect insures' decisions on underwriting and pricing insurance are their risk perception, attitudes towards flood insurance, governmental measures (e.g., land-use planning, building codes, risk communication), expected probabilities and losses of devastating flooding events, as well as insurance companies' attributes. To elicit insurers' utilities about premium-setting for insurance coverage, the 'certainty equivalent,' 'probability

Risk Management in Insurance Companies

OpenAIRE

Yang, Xufeng

2006-01-01

Insurance is the uncertain business in uncertain society. Today, insures face more complex and difficult risks. Efficient risk management mechanisms are essential for the insurers. The paper is set out initially to explore UK insurance companies risk management and risk disclosure by examining companies annual report after all the listed insurance companies are required to disclose risk information in their annual report, which seeks to reflect the recent development in UK insurance companies...

Insurance of nuclear risk

International Nuclear Information System (INIS)

Lacroix, M.

1976-01-01

Insurance for large nuclear installations covers mainly four types of risk: third party liability which in accordance with the nuclear conventions, is borne by a nuclear operator following an incident occurring in his installation or during transport of nuclear substances; material damage to the installation itself, which precisely is not covered by third party liability insurance; machinery breakdown, i.e. accidental damage or interruption of operation. Only the first category must be insured. In view of the magnitude of the risk, nuclear insurance resorts to co-insurance and reinsurance techniques which results in a special organisation of the nuclear insurance market, based on national nuclear insurance pools and on the Standing Committee on Atomic Risk of the European Insurance Committee. Conferences of the chairmen of nuclear insurance pools are convened regularly at a worldwide level. (NEA) [fr

Nuclear insurance fire risk

International Nuclear Information System (INIS)

Dressler, E.G.

2001-01-01

Nuclear facilities operate under the constant risk that radioactive materials could be accidentally released off-site and cause injuries to people or damages to the property of others. Management of this nuclear risk, therefore, is very important to nuclear operators, financial stakeholders and the general public. Operators of these facilities normally retain a portion of this risk and transfer the remainder to others through an insurance mechanism. Since the nuclear loss exposure could be very high, insurers usually assess their risk first-hand by sending insurance engineers to conduct a nuclear insurance inspection. Because a serious fire can greatly increase the probability of an off-site release of radiation, fire safety should be included in the nuclear insurance inspection. This paper reviews essential elements of a facility's fire safety program as a key factor in underwriting nuclear third-party liability insurance. (author)

Nuclear insurance risk assessment using risk-based methodology

International Nuclear Information System (INIS)

Wendland, W.G.

1992-01-01

This paper presents American Nuclear Insurers' (ANI's) and Mutual Atomic Energy Liability Underwriters' (MAELU's) process and experience for conducting nuclear insurance risk assessments using a risk-based methodology. The process is primarily qualitative and uses traditional insurance risk assessment methods and an approach developed under the auspices of the American Society of Mechanical Engineers (ASME) in which ANI/MAELU is an active sponsor. This process assists ANI's technical resources in identifying where to look for insurance risk in an industry in which insurance exposure tends to be dynamic and nonactuarial. The process is an evolving one that also seeks to minimize the impact on insureds while maintaining a mutually agreeable risk tolerance

Risks of Terrorism, Homicide and Illness: a Methodological Consideration

Directory of Open Access Journals (Sweden)

Richard J. Chasdi

2013-12-01

Full Text Available A recurring question posed to researchers is whether or not terrorism poses similar degrees of risk as other man-made or natural disasters. There are some specialists, such as John Mueller, who argue that somewhat ironically, the threat of terrorism is vastly exaggerated.[1] This begs the question : compared to what? The underlying aim of this Research Note is to point out some basic methodological and contextual issues to consider, rather than making an attempt to provide hard answers regarding relative individual and collective risks. However, an effort is made to place some empirical findings into appropriate political and social contexts. The framework for discussion includes: basic conceptual problems regarding the notion of “risk”; a comparison of certain basic terrorism incident rates with rates for homicides and illness; and identification of possible future directions to gauge risk assessment within the context of a more holistic systems perspective. 

Overview of DOE-NE Proliferation and Terrorism Risk Assessment

International Nuclear Information System (INIS)

Sadasivan, Pratap

2012-01-01

Research objectives are: (1) Develop technologies and other solutions that can improve the reliability, sustain the safety, and extend the life of current reactors; (2) Develop improvements in the affordability of new reactors to enable nuclear energy; (3) Develop Sustainable Nuclear Fuel Cycles; and (4) Understand and minimize the risks of nuclear proliferation and terrorism. The goal is to enable the use of risk information to inform NE R and D program planning. The PTRA program supports DOE-NE's goal of using risk information to inform R and D program planning. The FY12 PTRA program is focused on terrorism risk. The program includes a mix of innovative methods that support the general practice of risk assessments, and selected applications.

The insurance of climatic risks

International Nuclear Information System (INIS)

Pauthier, Alice

2015-06-01

The United Nations Environment Programme assesses that the cost of adaptation to climate change could reach 150 billions dollars per year by 2025-2030 and 500 billions dollars by 2050. This raises the issues of financing of adaptation measures, and of compensations in case of natural disaster, and insurance companies here seem to have a major role to play. However, the modification of the climatic risk puts the viability of conventional insurance mechanisms into question again. While discussing these issues, the author outlines that a sustainable insurance against these evolving risks may threaten insurance companies to go to bankrupt, but also all their policyholders who are, for most of them, unable to cope by themselves with the consequences of an extreme climatic event. The author also discusses related aspects such as risk modelling, risk mutualization, a securing of insurance companies based on the financial market, the implementation of public-private partnership, and ways to insure climate anomalies. She also comments the commitment of the insurance sector in adaptation and mitigation policies

Risks of mortality and morbidity from worldwide terrorism: 1968-2004.

Science.gov (United States)

Bogen, Kenneth T; Jones, Edwin D

2006-02-01

Worldwide data on terrorist incidents between 1968 and 2004 gathered by the RAND Corporation and the Oklahoma City National Memorial Institute for the Prevention of Terrorism (MIPT) were assessed for patterns and trends in morbidity/mortality. Adjusted data analyzed involve a total of 19,828 events, 7,401 "adverse" events (each causing >or= 1 victim), and 86,568 "casualties" (injuries), of which 25,408 were fatal. Most terror-related adverse events, casualties, and deaths involved bombs and guns. Weapon-specific patterns and terror-related risk levels in Israel (IS) have differed markedly from those of all other regions combined (OR). IS had a fatal fraction of casualties about half that of OR, but has experienced relatively constant lifetime terror-related casualty risks on the order of 0.5%--a level 2 to 3 orders of magnitude more than those experienced in OR that increased approximately 100-fold over the same period. Individual event fatality has increased steadily, the median increasing from 14% to 50%. Lorenz curves obtained indicate substantial dispersion among victim/event rates: about half of all victims were caused by the top 2.5% (or 10%) of harm-ranked events in OR (or IS). Extreme values of victim/event rates were approximated fairly well by generalized Pareto models (typically used to fit to data on forest fires, sea levels, earthquakes, etc.). These results were in turn used to forecast maximum OR- and IS-specific victims/event rates through 2080, illustrating empirically-based methods that could be applied to improve strategies to assess, prevent, and manage terror-related risks and consequences.

Insurance against nuclear risks

International Nuclear Information System (INIS)

Dow, J.C.

1976-01-01

Virtually any type of nuclear risk is insurable in principle, providing, of course, that the necessary standards of safety and control are met. Some of the risks are of a relatively minor character and no more hazardous than a simple conventional risk. But insurers would not consider as a minor risk anything which involves the use of nuclear fuel or other nuclear materials which are in a critical state or capable of releasing dangerous levels of radioactivity. These would include nuclear reactors or, indeed, any type of assembly which can not be regarded as subcritical. Most insurers would also regard installations involved in the manufacturing, processing and enriching of nuclear fuel, and certainly those concerned with the reprocessing of irradiated fuel and plutonium extraction, as major risks. (HP) [de

Environmental pollution risk and insurance

OpenAIRE

Fragnelli, Vito; Marina, Maria Erminia

2002-01-01

We consider environmental risks that are evaluated too much heavy for a single insurance company, but they can be insured by n companies which a premium is assigned to.This is precisely the Italian scenario where a pool of companies co-insures these risks.Under a game theoretic approach we start by analyzing how they should split the risk and the premium in order to be better off. Under suitable hypotheses, there exists an optimal decomposition of the risk, that allow us to define a cooperati...

Effectiveness of insurance risk management under crisis conditions

Directory of Open Access Journals (Sweden)

I.G. Goncharenko

2015-06-01

Full Text Available In the article some historical aspects of insurance, domestic trends in insurance risk management with aspects of international experience, the modern role of insurance and insurance companies in a market economy, factors of risk management system and the nature of the insurance portfolio are analyzed. Factors of risk events in insurance, the spectrum of risks, imbalance of the insurance market in crisis conditions are outlined; expert’s estimations of the insurance market in recent years are examined. Problems of insurance business perform are determined, especially insurance risk management. The ability to use the provisions of European insurance regulation on internal domestic insurance market is analyzed, and also the aspects of integration of Ukrainian insurance market are determined.

31 CFR 50.19 - General disclosure requirements for State residual market insurance entities and State worker's...

Science.gov (United States)

2010-07-01

... Money and Finance: Treasury Office of the Secretary of the Treasury TERRORISM RISK INSURANCE PROGRAM... using normal business practices, including forms and methods of communication used to communicate...

The Effects of Terrorism on Tourism: (Interrelations, Motives & Risks

Directory of Open Access Journals (Sweden)

Marco Romagnoli

2016-11-01

Full Text Available The article aims at explaining the relationship between terrorism and tourism, and the consequences that the former has on the latter. Untangling this relationship may be a useful tool to understand terrorist goals and motives. The pivotal question to be answered is which effects terrorism has on the tourism industry. In the modern era, terrorism has become an integrated risk, a maybe-to-include package of travelling for tourists. The operating environment for the tourism sector evolved in a huge way after the attacks to the Twin Towers in September of 2001. Terrorism and tourism data have become more and more important since that dramatic episode; both of them are twofold and interconnected with regard to their basic features, namely crossing national borders involving national and international protagonists and both using travel and communication technologies. Terrorists do not act randomly, but they have precise purposes. The article will explain the multiform and multifold ways through which an attack may occur and be better understood. Terrorism crowds the media; it physically hits and psychologically vexes minds. Tourists are an appealing target for terrorists because they are seen as a country’s symbolic ambassadors, while tourism destinations are perfect and visible spots to deploy a terrorist attack. Terrorists are capable of using tourists as the means to get the media’s attention and bombard the world with their message. Risk perception, attitude and preferences are one of the main determinants for a tourist in the destination choice momentum. A potential tourist who negatively conceives a destination as risky may choose to cancel his/her holiday or not even consider it because of security and safety motives.

Perception of Risk and Terrorism-Related Behavior Change: Dual Influences of Probabilistic Reasoning and Reality Testing

Science.gov (United States)

Denovan, Andrew; Dagnall, Neil; Drinkwater, Kenneth; Parker, Andrew; Clough, Peter

2017-01-01

The present study assessed the degree to which probabilistic reasoning performance and thinking style influenced perception of risk and self-reported levels of terrorism-related behavior change. A sample of 263 respondents, recruited via convenience sampling, completed a series of measures comprising probabilistic reasoning tasks (perception of randomness, base rate, probability, and conjunction fallacy), the Reality Testing subscale of the Inventory of Personality Organization (IPO-RT), the Domain-Specific Risk-Taking Scale, and a terrorism-related behavior change scale. Structural equation modeling examined three progressive models. Firstly, the Independence Model assumed that probabilistic reasoning, perception of risk and reality testing independently predicted terrorism-related behavior change. Secondly, the Mediation Model supposed that probabilistic reasoning and reality testing correlated, and indirectly predicted terrorism-related behavior change through perception of risk. Lastly, the Dual-Influence Model proposed that probabilistic reasoning indirectly predicted terrorism-related behavior change via perception of risk, independent of reality testing. Results indicated that performance on probabilistic reasoning tasks most strongly predicted perception of risk, and preference for an intuitive thinking style (measured by the IPO-RT) best explained terrorism-related behavior change. The combination of perception of risk with probabilistic reasoning ability in the Dual-Influence Model enhanced the predictive power of the analytical-rational route, with conjunction fallacy having a significant indirect effect on terrorism-related behavior change via perception of risk. The Dual-Influence Model possessed superior fit and reported similar predictive relations between intuitive-experiential and analytical-rational routes and terrorism-related behavior change. The discussion critically examines these findings in relation to dual-processing frameworks. This

Perception of Risk and Terrorism-Related Behavior Change: Dual Influences of Probabilistic Reasoning and Reality Testing.

Science.gov (United States)

Denovan, Andrew; Dagnall, Neil; Drinkwater, Kenneth; Parker, Andrew; Clough, Peter

2017-01-01

The present study assessed the degree to which probabilistic reasoning performance and thinking style influenced perception of risk and self-reported levels of terrorism-related behavior change. A sample of 263 respondents, recruited via convenience sampling, completed a series of measures comprising probabilistic reasoning tasks (perception of randomness, base rate, probability, and conjunction fallacy), the Reality Testing subscale of the Inventory of Personality Organization (IPO-RT), the Domain-Specific Risk-Taking Scale, and a terrorism-related behavior change scale. Structural equation modeling examined three progressive models. Firstly, the Independence Model assumed that probabilistic reasoning, perception of risk and reality testing independently predicted terrorism-related behavior change. Secondly, the Mediation Model supposed that probabilistic reasoning and reality testing correlated, and indirectly predicted terrorism-related behavior change through perception of risk. Lastly, the Dual-Influence Model proposed that probabilistic reasoning indirectly predicted terrorism-related behavior change via perception of risk, independent of reality testing. Results indicated that performance on probabilistic reasoning tasks most strongly predicted perception of risk, and preference for an intuitive thinking style (measured by the IPO-RT) best explained terrorism-related behavior change. The combination of perception of risk with probabilistic reasoning ability in the Dual-Influence Model enhanced the predictive power of the analytical-rational route, with conjunction fallacy having a significant indirect effect on terrorism-related behavior change via perception of risk. The Dual-Influence Model possessed superior fit and reported similar predictive relations between intuitive-experiential and analytical-rational routes and terrorism-related behavior change. The discussion critically examines these findings in relation to dual-processing frameworks. This

Perception of Risk and Terrorism-Related Behavior Change: Dual Influences of Probabilistic Reasoning and Reality Testing

Directory of Open Access Journals (Sweden)

Andrew Denovan

2017-10-01

Full Text Available The present study assessed the degree to which probabilistic reasoning performance and thinking style influenced perception of risk and self-reported levels of terrorism-related behavior change. A sample of 263 respondents, recruited via convenience sampling, completed a series of measures comprising probabilistic reasoning tasks (perception of randomness, base rate, probability, and conjunction fallacy, the Reality Testing subscale of the Inventory of Personality Organization (IPO-RT, the Domain-Specific Risk-Taking Scale, and a terrorism-related behavior change scale. Structural equation modeling examined three progressive models. Firstly, the Independence Model assumed that probabilistic reasoning, perception of risk and reality testing independently predicted terrorism-related behavior change. Secondly, the Mediation Model supposed that probabilistic reasoning and reality testing correlated, and indirectly predicted terrorism-related behavior change through perception of risk. Lastly, the Dual-Influence Model proposed that probabilistic reasoning indirectly predicted terrorism-related behavior change via perception of risk, independent of reality testing. Results indicated that performance on probabilistic reasoning tasks most strongly predicted perception of risk, and preference for an intuitive thinking style (measured by the IPO-RT best explained terrorism-related behavior change. The combination of perception of risk with probabilistic reasoning ability in the Dual-Influence Model enhanced the predictive power of the analytical-rational route, with conjunction fallacy having a significant indirect effect on terrorism-related behavior change via perception of risk. The Dual-Influence Model possessed superior fit and reported similar predictive relations between intuitive-experiential and analytical-rational routes and terrorism-related behavior change. The discussion critically examines these findings in relation to dual

Insurer risk control and nuclear liability

International Nuclear Information System (INIS)

DeMerchant, C.

2015-01-01

We specialize in high quality insurance risk management, underwriting and inspections for Canadian nuclear exposures. We provide true risk transfer, secure insurance capacity and collaborate with the world's nuclear experts to create innovative domestic solutions for our clients and members. The benefit of our experience works for all stake holders: insured clients, members, multi-level government agencies and all Canadians. NIAC has a 55-year history of partnering with insurers around the globe to create reliable risk management for the nuclear industry. We offer Canadian risk solutions, thought leadership and expertise that provides security and confidence to our customers and members. NIAC leads in the areas of nuclear insurance law, good governance and claims administration to create a true Centre of Excellence.

Insurer risk control and nuclear liability

Energy Technology Data Exchange (ETDEWEB)

DeMerchant, C. [Nuclear Insurance Association of Canada, Toronto, ON (Canada)

2015-07-01

We specialize in high quality insurance risk management, underwriting and inspections for Canadian nuclear exposures. We provide true risk transfer, secure insurance capacity and collaborate with the world's nuclear experts to create innovative domestic solutions for our clients and members. The benefit of our experience works for all stake holders: insured clients, members, multi-level government agencies and all Canadians. NIAC has a 55-year history of partnering with insurers around the globe to create reliable risk management for the nuclear industry. We offer Canadian risk solutions, thought leadership and expertise that provides security and confidence to our customers and members. NIAC leads in the areas of nuclear insurance law, good governance and claims administration to create a true Centre of Excellence.

Risk segmentation in Chilean social health insurance.

Science.gov (United States)

Hidalgo, Hector; Chipulu, Maxwell; Ojiako, Udechukwu

2013-01-01

The objective of this study is to identify how risk and social variables are likely to be impacted by an increase in private sector participation in health insurance provision. The study focuses on the Chilean health insurance industry, traditionally dominated by the public sector. Predictive risk modelling is conducted using a database containing over 250,000 health insurance policy records provided by the Superintendence of Health of Chile. Although perceived with suspicion in some circles, risk segmentation serves as a rational approach to risk management from a resource perspective. The variables that have considerable impact on insurance claims include the number of dependents, gender, wages and the duration a claimant has been a customer. As shown in the case study, to ensure that social benefits are realised, increased private sector participation in health insurance must be augmented by regulatory oversight and vigilance. As it is clear that a "community-rated" health insurance provision philosophy impacts on insurance firm's ability to charge "market" prices for insurance provision, the authors explore whether risk segmentation is a feasible means of predicting insurance claim behaviour in Chile's private health insurance industry.

Risk Management in the banking and insurance sector

Directory of Open Access Journals (Sweden)

Ibrahim Mala

2018-03-01

Full Text Available Risk management is becoming an integral part of every organization, especially for the banking and Insurance sector because of their high-risk business. Both sectors try to manage the risks of their clients and their own risks. But, challenges in the banking and insurance industry are frequently influenced by the liquidity rations and the amount and quality of capital as ground requirements for risk management. The risk exposure in recent times is becoming more complex, more dynamic and diverse. Hence, we need to understand the risks which can be taken and the risks which should be avoided. In the other side insurance policies are long term, enabling insurers to stabilize the financial system and oft en insurance is the final transfer of risk. In this paper we will analyze an overview of risk management in the banking and insurance sector.

Risk Management and Insurance Decisions under Ambiguity

DEFF Research Database (Denmark)

Martínez-Correa, Jimmy

I study the impact of ambiguity on insurance decisions and the optimality of insurance contracts. My tractable approach allows me to study the interaction between risk and ambiguity attitudes. When insurance decisions are made independently of other assets, for a given increase in wealth, both risk...... portfolio theory that assumes Subjective Expected Utility theory; however, it provides hints to a possible solution of the under-diversification puzzle of households. I also identify conditions under which more risk or ambiguity aversion decreases the demand for coinsurance. Additionally, I show...... a counterexample to a classical result in insurance economics where an insurance contract with straight deductible is dominated by a coinsurance contract. Finally, I find that a modified Borch rule characterizes the optimal insurance contract with bilateral risk and ambiguity attitudes and heterogeneity in beliefs....

US-Soviet cooperation in countering nuclear terrorism: the role of risk reduction centers

International Nuclear Information System (INIS)

Nunn, S.; Warner, J.W.

1987-01-01

Preventing nuclear terrorism should be high on the agenda of US-Soviet relations. Indeed, the specter of nuclear terrorism, more than any other factor originally prompted and has subsequently sustained the author's deep interest in US-Soviet agreements on establishment of US-Soviet Nuclear Risk Reduction Centers and other important risk-reduction measures. Such centers can play an invaluable role in facilitating discussions aimed at forestalling possible contingencies and in providing a mechanism for dampening escalatory dangers that might otherwise result from any future nuclear terrorism incident. In addition to these crucial substantive functions, the centers could serve to reassure anxious publics that the governments they have entrusted with command authority over tens of thousands of nuclear devices are giving the highest priority to reducing the risk that any of them will ever be used, whether by design or by accident. Nuclear risk Reduction Centers are an idea whose time has come

Insurance loss coverage under restricted risk classification

OpenAIRE

Hao, Mingjie; Radfall Charitable Trust

2017-01-01

Insurers hope to make profit through pooling policies from a large number of individuals. Unless the risk in question is similar for all potential customers, an insurer is exposed to the possibility of adverse selection by attracting only high-risk individuals. To counter this, insurers have traditionally employed underwriting principles, identifying suitable risk factors to subdivide their potential customers into homogeneous risk groups, based on which risk-related premiums can be charged. ...

Risk transfer solutions for the insurance industry

Directory of Open Access Journals (Sweden)

Njegomir Vladimir

2009-01-01

Full Text Available The paper focuses on the traditional and alternative mechanisms for insurance risk transfer that are available to global as well as to domestic insurance companies. The findings suggest that traditional insurance risk transfer solutions available to insurance industry nowadays will be predominant in the foreseeable future but the increasing role of alternative solutions is to be expected as the complementary rather than supplementary solution to traditional transfer. Additionally, findings suggest that it is reasonable to expect that future development of risk transfer solutions in Serbia will follow the path that has been passed by global insurance industry.

46 CFR 308.107 - War risk hull insurance policy.

Science.gov (United States)

2010-10-01

... 46 Shipping 8 2010-10-01 2010-10-01 false War risk hull insurance policy. 308.107 Section 308.107 Shipping MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION EMERGENCY OPERATIONS WAR RISK INSURANCE War Risk Hull and Disbursements Insurance § 308.107 War risk hull insurance policy. Standard Form MA-240...

Risk assessment and risk transfer from an insurerś point of view

Science.gov (United States)

Ebner, G.

2009-04-01

Risk, a word that causes a lot of associations in human brains. Many of us don't like risks. Since hundreds of years insurance is the most common way to get rid of the financial consequences when risks convert to damages. This article deals with commercial risks and the possibilities of risk transfer, an important task within the field of risk management. For commercial entities it is very important to transfer risks, threatening the competitiveness or even worse the existence of a company. At the beginning of insurance it was more the less a bet between merchants and rich people. Later on mutual societies were taking place. Today we see a complex insurance industry with insurers, reinsurers, self insuring possibilities via captives and much more. This complex system, with all the different ways to deal with risk transfer requires a professional risk assessment! Risk assessment is based on knowledge about the threatened assets, the likelihood that they will be damaged, the threats and the possibilities to protect these assets. Assets may be tangible or intangible. Assessing risks is not a precise calculation that delivers a result without any doubt. But insurers and insured need a basis to fix a premium, both of them can agree. This contribution will present a system to assess risks and to find the right risk-transfer-premiums.

Relative Risk Appraisal, the September 11 Attacks, and Terrorism-Related Fears

Science.gov (United States)

Marshall, Randall D.; Bryant, Richard A.; Amsel, Lawrence; Suh, Eun Jung; Cook, Joan M.; Neria, Yuval

2013-01-01

There are now replicated findings that posttraumatic stress disorder (PTSD) symptoms related to the September 11, 2001, attacks occurred in large numbers of persons who did not fit the traditional definition of exposure to a traumatic event. These data are not explained by traditional epidemiologic “bull’s eye” disaster models, which assume the psychological effects are narrowly, geographically circumscribed, or by existing models of PTSD onset. In this article, the authors develop a researchable model to explain these and other terrorism-related phenomena by synthesizing research and concepts from the cognitive science, risk appraisal, traumatic stress, and anxiety disorders literatures. They propose the new term relative risk appraisal to capture the psychological function that is the missing link between the event and subjective response in these and other terrorism-related studies to date. Relative risk appraisal highlights the core notion from cognitive science that human perception is an active, multidimensional process, such that for unpredictable societal threats, proximity to the event is only one of several factors that influence behavioral responses. Addressing distortions in relative risk appraisal effectively could reduce individual and societal vulnerability to a wide range of adverse economic and ethnopolitical consequences to terrorist attacks. The authors present ways in which these concepts and related techniques can be helpful in treating persons with September 11– or terrorism-related distress or psychopathology. PMID:17516775

An attempt to evaluate the risks associated with radiological terror

International Nuclear Information System (INIS)

Paschoa, A.S.; Dantas, B.M.

2014-01-01

The evaluation of the risk of a terrorist attack has been made frequently by multiplying the probability of occurrence of a terrorist attempt by the probability of its success and a quantity which represents the consequences of a successful attack. In the case of a radiological attack the consequences will vary in case the action will be active or passive. Thirteen radionuclides were examined for their potential uses in credible threats or terrorist attacks based on their availability from laboratories and hospitals. Taking into account the dose conversion coefficients published by the International Atomic Energy Agency, those radionuclides with higher dose effectiveness for ingestion are the following: 210 Po; 226 Ra and 241 Am. Other radionuclides which can be used in threats and terror attacks, like 137 Cs for example have also been examined. The risks associated with the selected radionuclides have been tentatively ranked as high, medium, or low. The probability used to evaluate risks depends on the motivation of the terrorist and the capacity, which implies availability or the actual possibility of obtaining a particular radionuclide. On the other hand, whenever a list of radionuclides to be used in a malevolent action is available to a terrorist, the choice of the most adequate will depend also on the action to be undertaken. This work ranks risks associated with radiological terror based on physical, chemical, radio-toxicological and other relevant data on radionuclides, which were either already used in terror attacks, or were pointed out as adequate to be used in such malevolent actions. (author)

Visualization tools for insurance risk processes

OpenAIRE

Krzysztof Burnecki; Rafal Weron

2006-01-01

This chapter develops on risk processes which, perhaps, are most suitable for computer visualization of all insurance objects. At the same time, risk processes are basic instruments for any non-life actuary – they are vital for calculating the amount of loss that an insurance company may incur.

Risk assessment and nuclear insurance: an overview

International Nuclear Information System (INIS)

Deitchman, J.V.; King, W.T. Jr.; Olding, R.P.

1976-01-01

In the nascent years of commercial nuclear power, the insurance industry expressed confidence in the safety of nuclear operations by committing unprecedented insurance capacity to nuclear risks. As the nuclear industry has developed, it has compiled an enviable safety record. The initial confidence of the insurance industry has thus been justified and an ever-increasing portion of the financial liability associated with nuclear operations has been accepted by the world-wide insurance markets. This increasing acceptance and understanding of nuclear risks by the insurance industry has resulted in significantly reduced rates and large premium refunds for nuclear operators

MARKET INSURANCE AND RISKS IN THIS FIELD

Directory of Open Access Journals (Sweden)

Ersilia Catrina

2017-11-01

Full Text Available The insurance market can be considered a market where all sorts of anomalies can be encountered or a current acquisition for a situation considered to be certain or relative future, depending on the type of insurance. For the most part, assurance is based on a premise, a hypothesis that is generally based on several factors of influence. Generally, the most important factors in making such a decision are generated by the human-sensitive factor or the economicprotective. Therefore, by joining the insurance market and purchasing any kind of insurance, we must also take into account the risks that arise from these products. Generally, most people perceive these insurance policies in different areas as a future guarantee without considering additional elements that can highlight risk elements that may alter the expected outcome of the acquirer. An important element to mitigate these risks would be the implementation and use of internal control over the supply chain, control that would make a difference between an activity under normal, predictable and legal conditions and a random activity with many elements of risk that can cause major damage to those involved, and to the insurer and the insured. Through this paper, the author aimed to highlight the importance of internal control in insurance companies, as well as the consequences of the lack of internal control within these societies

Evolving Judgments of Terror Risks: Foresight, Hindsight, and Emotion--A Reanalysis

Science.gov (United States)

Fischhoff, Baruch; Gonzalez, Roxana M.; Lerner, Jennifer S.; Small, Deborah A.

2012-01-01

The authors examined the evolution of cognitive and emotional responses to terror risks for a nationally representative sample of Americans between late 2001 and late 2002. Respondents' risk judgments changed in ways consistent with their reported personal experiences. However, they did not recognize these changes, producing hindsight bias in…

RISK PREMIUM IN MOTOR VEHICLE INSURANCE

Directory of Open Access Journals (Sweden)

BANU ÖZGÜREL

2013-06-01

Full Text Available The pure premium or risk premium is the premium that would exactly meet the expected cost of the risk covered ignoring management expenses, commissions, contingency loading, etc. Claim frequency rate and mean claim size are required for estimation in calculating risk premiums. In this study, we discussed to estimate claim frequency rate and mean claim size with several methods and calculated risk premiums. Data, which supported our study, is provided by insurance company involving with motor vehicle insurance.

INSURANCE - A RISK COVERING STRATEGY

Directory of Open Access Journals (Sweden)

Marius Dan GAVRILETEA

2014-12-01

Full Text Available Insurance industry in Romania is facing for a few years a continuous decreasing in Gross Written Premium. The negative trend may be caused by the effects of financial crises for companies and also for individuals. In order to keep theirs market share, insurance companies must identify new opportunities to increase theirs’ GWP. Among these new market niches hospitality industry may represent an option to be followed. In this paper, we will analyze the types of insurance policies available for hospitality industry (except mandatory motors’ third party liability and motors’ own vehicle insurance. The conclusion represents solution both for insurance companies and for hotel as a part of theirs’ risk financing process.

Communication as a bridge between the threat of terrorism and the perception of risk

NARCIS (Netherlands)

de Vries, G.

2017-01-01

We are shaken almost weekly by reports of the threat of terrorism. But just how real is this threat, and how is it experienced by the general public? It is not unlikely that there is a gap between the threat of terrorism and people's perception of the risk. A new research project by Doctor Gerdien

PARAMETRIC INSURANCE COVER FOR NATURAL CATASTROPHE RISKS

Directory of Open Access Journals (Sweden)

Serghei Margulescu

2013-11-01

Full Text Available With economic losses of over USD 370 bn caused by 325 catastrophic events, 2011 ranks as the worst ever year in terms of costs to society due to natural catastrophes and man-made disasters. Inthe same time, 2011 is the second most expensive year in the history for the insurance industry, with insured losses from catastrophic events amounting to USD 116 bn. Both the high level of damages and insured losses, as well as the unprecedented gap between the two values, made insurers and reinsurers worldwide to understand that some risks had so far been underestimated and they have to be better integrated in the catastrophes modelling.On the other hand, governments have to protect themselves against the financial impact of natural catastrophes and new forms of cooperation between the public and private sectors can help countries finance disaster risks. Viewed in a country’s wider risk management context, the purchase of parametric insurance cover, which transfers natural catastrophe risk to the private sector using an index- based trigger, is a necessary shift towards a pre-emptive risk management strategy. This kind of approach can be pursued by central governments or at the level of provincial or municipal governments, and a number of case studies included in the publication “Closing the financial gap” by Swiss Re (2011 illustrates how new forms of parametric insurance can help countries finance disaster risks.

46 CFR 308.207 - War risk protection and indemnity insurance policy.

Science.gov (United States)

2010-10-01

... 46 Shipping 8 2010-10-01 2010-10-01 false War risk protection and indemnity insurance policy. 308... OPERATIONS WAR RISK INSURANCE War Risk Protection and Indemnity Insurance § 308.207 War risk protection and indemnity insurance policy. The standard form of war risk protection and indemnity insurance policy, Form MA...

Risk transfer via energy savings insurance

Energy Technology Data Exchange (ETDEWEB)

Mills, Evan

2001-10-01

Among the key barriers to investment in energy efficiency improvements are uncertainties about attaining projected energy savings and apprehension about potential disputes over these savings. The fields of energy management and risk management are thus intertwined. While many technical methods have emerged to manage performance risks (e.g. building commissioning), financial risk transfer techniques are less developed in the energy management arena than in other more mature segments of the economy. Energy Savings Insurance (ESI) - formal insurance of predicted energy savings - is one method of transferring financial risks away from the facility owner or energy services contractor. ESI offers a number of significant advantages over other forms of financial risk transfer, e.g. savings guarantees or performance bonds. ESI providers manage risk via pre-construction design review as well as post-construction commissioning and measurement and verification of savings. We found that the two mos t common criticisms of ESI - excessive pricing and onerous exclusions - are not born out in practice. In fact, if properly applied, ESI can potentially reduce the net cost of energy savings projects by reducing the interest rates charged by lenders, and by increasing the level of savings through quality control. Debt service can also be ensured by matching loan payments to projected energy savings while designing the insurance mechanism so that payments are made by the insurer in the event of a savings shortfall. We estimate the U.S. ESI market potential of $875 million/year in premium income. From an energy-policy perspective, ESI offers a number of potential benefits: ESI transfers performance risk from the balance sheet of the entity implementing the energy savings project, thereby freeing up capital otherwise needed to ''self-insure'' the savings. ESI reduces barriers to market entry of smaller energy services firms who do not have sufficiently strong balance

Insurability of Cyber Risk: An Empirical Analysis

OpenAIRE

Biener, Christian; Eling, Martin; Wirfs, Jan Hendrik

2015-01-01

This paper discusses the adequacy of insurance for managing cyber risk. To this end, we extract 994 cases of cyber losses from an operational risk database and analyse their statistical properties. Based on the empirical results and recent literature, we investigate the insurability of cyber risk by systematically reviewing the set of criteria introduced by Berliner (1982). Our findings emphasise the distinct characteristics of cyber risks compared with other operational risks and bring to li...

Financial risk protection from social health insurance.

Science.gov (United States)

Barnes, Kayleigh; Mukherji, Arnab; Mullen, Patrick; Sood, Neeraj

2017-09-01

This paper estimates the impact of social health insurance on financial risk by utilizing data from a natural experiment created by the phased roll-out of a social health insurance program for the poor in India. We estimate the distributional impact of insurance on of out-of-pocket costs and incorporate these results with a stylized expected utility model to compute associated welfare effects. We adjust the standard model, accounting for conditions of developing countries by incorporating consumption floors, informal borrowing, and asset selling which allow us to separate the value of financial risk reduction from consumption smoothing and asset protection. Results show that insurance reduces out-of-pocket costs, particularly in higher quantiles of the distribution. We find reductions in the frequency and amount of money borrowed for health reasons. Finally, we find that the value of financial risk reduction outweighs total per household costs of the insurance program by two to five times. Copyright © 2017. Published by Elsevier B.V.

Earthquake insurance pricing: a risk-based approach.

Science.gov (United States)

Lin, Jeng-Hsiang

2018-04-01

Flat earthquake premiums are 'uniformly' set for a variety of buildings in many countries, neglecting the fact that the risk of damage to buildings by earthquakes is based on a wide range of factors. How these factors influence the insurance premiums is worth being studied further. Proposed herein is a risk-based approach to estimate the earthquake insurance rates of buildings. Examples of application of the approach to buildings located in Taipei city of Taiwan were examined. Then, the earthquake insurance rates for the buildings investigated were calculated and tabulated. To fulfil insurance rating, the buildings were classified into 15 model building types according to their construction materials and building height. Seismic design levels were also considered in insurance rating in response to the effect of seismic zone and construction years of buildings. This paper may be of interest to insurers, actuaries, and private and public sectors of insurance. © 2018 The Author(s). Disasters © Overseas Development Institute, 2018.

Terror attacks increases the risk of vascular injuries

Directory of Open Access Journals (Sweden)

Eitan eHeldenberg

2014-05-01

Full Text Available Objectives: Extensive literature exists about military trauma as opposed to the very limited literature regarding terror-related civilian trauma. However, terror-related vascular trauma (VT, as a unique type of injury, is yet to be addressed.Methods: A retrospective analysis of the Israeli National Trauma Registry was performed. All patients in the registry from 09/2000 to 12/2005 were included. The subgroup of patients with documented vascular trauma (VT (N=1,545 was analyzedand further subdivided into those suffering from Terror-related Vascular Trauma (TVT and Non-Terror related Vascular Trauma (NTVT. Both groups were analyzed according to mechanism of trauma, type and severity of injury and treatment.Results: Out of 2,446 terror related trauma admissions 243 sustained TVT (9.9% compared to 1302 VT patients from Non Terror trauma (1.1%. TVT injuries tend to be more complex and most patients were operated on. ICU admissions and hospitallength of stay was higher in the TVT group. Penetrating trauma was the prominent cause of injury among the TVT group. TVT group had a higher proportion of patients with severe injuries (ISS>16 and mortality. Thorax injuries were more frequent in the TVT group. Extremity injuries were the most prevalent vascular injuries in both groups; however NTVT group had more upper extremity injuries, while the TVT group had significantly more lower extremity injuries.Conclusion: Vascular injuries are remarkably more common among terror attack victims than among non-terror trauma victims and the injuries of terror casualties tend to be more complex. The presence of a vascular surgeon will ensure a comprehensive clinical care.

Cyber Terrorism demands a Global Risks and Threats Strategic Management

International Nuclear Information System (INIS)

Gareva, R.

2007-01-01

The world is in the third wave of development, which is digital managed and networked. Information, which creates the knowledge is transferring thorough the Internet by exponential function. The rapid advancement of the computer technology has a great influence over the development of the critical information infrastructure, thus changing the safety environment and the national values and interests. This advancement produces threats and risks from computer perspective which are sublimated in different forms of international terrorism and particularly in cyber terrorism. The main aim of this paper is based on a thorough analysis of what is scientifically known and practiced when nowadays critical information infrastructure is in the focus of the cyber terrorism. The rapid IT development demands changes in the strategic management focus. As a result of a time-consuming theoretical and empirical research this paper suggests a methodology for strategic managing of: threats, risks and vulnerabilities. The proposed methodology is seen as a mean to increase the human security conscious in every sense of the word, and to promote the need for rules, procedures and standards establishment from the aspect of the strategic management in the new information epoch concerning. In addition, through a scientific discourse, a short attempt is made to relate Macedonian reality with the phenomenon mentioned above. The most fundamental set phrase is that the efficiency and promptly made decisions during strategic planning are a projection of the systematic organization of functions and models for managing the risks and threats of the critical information infrastructure. Hence, this paper could be seen as a perspective when taking in consideration the regional strategic management, and the cyber space vital functioning. (author)

Aggravation of Risk and Precautionary Measures in Non-Life Insurance: A Tricky Scope for the Insurer?

Directory of Open Access Journals (Sweden)

Olavi-Jüri Luik

2015-12-01

Full Text Available Aggravation of risk and failure to take precautionary measures are focal issues in non-life insurance in terms of potential partial or full release of the insurer from the duty to perform. Not infrequently, it is difficult to draw a line between the aggravation of risk on the one hand, and non-compliance with precautionary measures on the other, since a particular action by a policyholder may present both situations. At the same time, the legal remedies available to the insurer regarding these two situations are different in scope. The aggravation of risk and non-compliance with precautionary measures are precisely the bases on which insurers actually reduce indemnity or refuse to compensate for damages. This article explores the differences between insurance laws in the Baltic states—specifically, the Estonian Law of Obligations Act, the Latvian Insurance Contract Law and Lithuanian rules contained in the Civil Code and Insurance Law. The article explores the differences between the Baltic states’ insurance laws and the Principles of European Insurance Contract Law (PEICL with regard to a policyholder’s duty in relation to aggravation of risk and precautionary measures, as the rights and obligations of policyholders do change where the optional instrument is applied. The article also includes comparisons to German, Finnish and Russian insurance law.

Specific aspects of insurance of nuclear risks

International Nuclear Information System (INIS)

Angelici, C.

1980-03-01

The following questions are discussed in connection with the insurance of nuclear risks: insurance techniques, the nuclear operator's limitation of liability in amount and in time, its channelling, the principle of sole liability and exonerations, the insurers' position, the cover provided and state intervention beyond that amount. (NEA) [fr

Deflation Risk and Implications for Life Insurers

Directory of Open Access Journals (Sweden)

Jean-François Bégin

2016-12-01

Full Text Available Life insurers are exposed to deflation risk: falling prices could lead to insufficient investment returns, and inflation-indexed protections could make insurers vulnerable to deflation. In this spirit, this paper proposes a market-based methodology for measuring deflation risk based on a discrete framework: the latter accounts for the real interest rate, the inflation index level, its conditional variance, and the expected inflation rate. US inflation data are then used to estimate the model and show the importance of deflation risk. Specifically, the distribution of a fictitious life insurer’s future payments is investigated. We find that the proposed inflation model yields higher risk measures than the ones obtained using competing models, stressing the need for dynamic and market-consistent inflation modelling in the life insurance industry.

Terrorism in South Korea.

Science.gov (United States)

Wang, Soon Joo; Choi, Jin Tae; Arnold, Jeffrey

2003-01-01

South Korea has experienced > 30 suspected terrorism-related events since 1958, including attacks against South Korean citizens in foreign countries. The most common types of terrorism used have included bombings, shootings, hijackings, and kidnappings. Prior to 1990, North Korea was responsible for almost all terrorism-related events inside of South Korea, including multiple assassination attempts on its presidents, regular kidnappings of South Korean fisherman, and several high-profile bombings. Since 1990, most of the terrorist attacks against South Korean citizens have occurred abroad and have been related to the emerging worldwide pattern of terrorism by international terrorist organizations or deranged individuals. The 1988 Seoul Olympic Games provided a major stimulus for South Korea to develop a national emergency response system for terrorism-related events based on the participation of multiple ministries. The 11 September 2001 World Trade Center and Pentagon attacks and the 2001 United States of America (US) anthrax letter attacks prompted South Korea to organize a new national system of emergency response for terrorism-related events. The system is based on five divisions for the response to specific types of terrorist events, involving conventional terrorism, bioterrorism, chemical terrorism, radiological terrorism, and cyber-terrorism. No terrorism-related events occurred during the 2002 World Cup and Asian Games held in South Korea. The emergency management of terrorism-related events in South Korea is adapting to the changing risk of terrorism in the new century.

Risk transfer via energy savings insurance; TOPICAL

International Nuclear Information System (INIS)

Mills, Evan

2001-01-01

Among the key barriers to investment in energy efficiency improvements are uncertainties about attaining projected energy savings and apprehension about potential disputes over these savings. The fields of energy management and risk management are thus intertwined. While many technical methods have emerged to manage performance risks (e.g. building commissioning), financial risk transfer techniques are less developed in the energy management arena than in other more mature segments of the economy. Energy Savings Insurance (ESI) - formal insurance of predicted energy savings - is one method of transferring financial risks away from the facility owner or energy services contractor. ESI offers a number of significant advantages over other forms of financial risk transfer, e.g. savings guarantees or performance bonds. ESI providers manage risk via pre-construction design review as well as post-construction commissioning and measurement and verification of savings. We found that the two mos t common criticisms of ESI - excessive pricing and onerous exclusions - are not born out in practice. In fact, if properly applied, ESI can potentially reduce the net cost of energy savings projects by reducing the interest rates charged by lenders, and by increasing the level of savings through quality control. Debt service can also be ensured by matching loan payments to projected energy savings while designing the insurance mechanism so that payments are made by the insurer in the event of a savings shortfall. We estimate the U.S. ESI market potential of$875 million/year in premium income. From an energy-policy perspective, ESI offers a number of potential benefits: ESI transfers performance risk from the balance sheet of the entity implementing the energy savings project, thereby freeing up capital otherwise needed to ''self-insure'' the savings. ESI reduces barriers to market entry of smaller energy services firms who do not have sufficiently strong balance sheets to self-insure

Nuclear terrorism risk analysis using game theory. Case study of sea transportation of MOX fuel

International Nuclear Information System (INIS)

Nakatani, Eri; Tanaka, Satoru; Choi, Jor-Shan

2010-01-01

While considerable attention and resources have been directed towards improving nuclear security in Japan in response to the threat of nuclear terrorism, the transport of nuclear material raises concern by the public as indicated in the recent return of MOX fuel from Europe. This concern cannot be adequately addressed by the government through communications with the public because of the confidential nature of such transport. Also, it remains a challenge for adequately assessing the nuclear terrorism risk because many key parameters associated with such assessment cannot be derived from statistical data and reflect actors' intentions unlike assessment on natural disasters. This study proposes an assessment methodology which introduces game theory to deduce the correlations between those key parameters and can be used to analyze the nuclear terrorism risk, both quantitatively and qualitatively for the civilian use of nuclear power. Risk will be calculated by Monte Carlo methods based on probability distributions set for actors' utilities. A case-study of transporting the MOX fuel by sea is also included. (author)

Insurance World in Transition: Changes in Global Risk Taking and Risk Assessment

Science.gov (United States)

Michel, Gero; Tiampo, Kristy

2015-04-01

Catastrophe insurance risk assessment, risk taking, and regulation has evolved over the last 20 years and is gearing up for significant further change in the years ahead. Changes in regulation and influx of capital have put profit margins for catastrophe risk products under pressure despite the fact that changes in climate as well as increasing insurance penetration is expected to heighten demand. As a result, reinsurance strategies are moving away from catastrophe risk. In addition, lower margins require cheaper and more efficient risk assessment methods and processes which are contrary to evolving analytical tools and methods that had increased expenses in line with growing margins over the last decade. New capital providers are less familiar with and less willing to accept complex supply chains for risk management, relationship-driven business and tedious data exchange and management processes. Risk takers claim new measures and ask for more flexibility in the use of tools. The current concepts of catastrophe insurance risk assessment are hence under thorough scrutiny. This presentation deals with the changing landscape in catastrophe insurance risk assessment and risk hedging and discusses changes in catastrophe risk assessment products and demand. How likely is it that private, small and nimble hazard and risk consulting groups - increasingly emanating from larger science organizations - will replace large established firms in their role to assess risk? What role do public-private academic partnerships play in assuming risk for catastrophe insurance and what role could they play in the future? What are the opportunities and downsides of the current changes in risk taking and hedging? What is needed from the scientific community in order to fill the gaps in risk management and who is likely to take advantage of the current changes?

Risk selection and risk adjustment: improving insurance in the individual and small group markets.

Science.gov (United States)

Baicker, Katherine; Dow, William H

2009-01-01

Insurance market reforms face the key challenge of addressing the threat that risk selection poses to the availability, of stable, high-value insurance policies that provide long-term risk protection. Many of the strategies in use today fail to address this breakdown in risk pooling, and some even exacerbate it. Flexible risk adjustment schemes are a promising avenue for promoting market stability and limiting insurer cream-skimming, potentially providing greater benefits at lower cost. Reforms intended to increase insurance coverage and the value of care delivered will be much more effective if implemented in conjunction with policies that address these fundamental selection issues.

Insuring Life : Value, Security and Risk

NARCIS (Netherlands)

Lobo-Guerrero, Luis

2016-01-01

This book is a contribution to the scholarly engagement with the wider problem of governing through risk and the politics of uncertainty. It takes life insurance as an empirical site from which to ask: what is the kind of governance created through insurance an instance of, and how does it

Risk transfer via energy-savings insurance

International Nuclear Information System (INIS)

Mills, Evan

2003-01-01

Among the key barriers to investment in energy efficiency are uncertainties about attaining projected energy savings and potential disputes over stipulated savings. The fields of energy management and risk management are thus intertwined. While many technical methods have emerged to manage performance risks (e.g. building diagnostics and commissioning), financial methods are less developed in the energy management arena than in other segments of the economy. Energy-savings insurance (ESI) - formal insurance of predicted energy savings - transfers and spreads both types of risk over a larger pool of energy efficiency projects and reduces barriers to market entry of smaller energy service firms who lack sufficiently strong balance sheets to self-insure the savings. ESI encourages those implementing energy-saving projects to go beyond standard measures and thereby achieve more significant levels of energy savings. Insurance providers are proponents of improved savings measurement and verification techniques, as well as maintenance, thereby contributing to national energy-saving objectives. If properly applied, ESI can potentially reduce the net cost of energy-saving projects by reducing the interest rates charged by lenders, and by increasing the level of savings through quality control. Governmental agencies have been pioneers in the use of ESI and could continue to play a role

Improbable Success: Risk Communication and the Terrorism Hazard

Science.gov (United States)

2010-03-01

never aspired to be anything more than a bureaucratic construct partnered with the media. It has taken years to fully understand the unintended...terrorism plan. http://www.ag.gov.au/agd/WWW/rwpattach.nsf/ VAP /(3273BD3F76A7A5DEDA E36942A54D7D90)~National+Counter-Terrorism+Plan+- +Alert+System...Australian Government National Security. (2009a). National Counter-Terrorism Alert System Fact Sheet. http://www.ag.gov.au/agd/WWW/rwpattach.nsf/ VAP

Essays on valuation and risk management for insurers

NARCIS (Netherlands)

Plat, H.J.

2011-01-01

In recent years there has been increasing attention of the insurance industry for market consistent valuation of insurance liabilities and the quantification of insurance risks. Important drivers of this development are the new regulatory requirements resulting from the introduction of IFRS 4 Phase

Continuing Professional Education of Insurance and Risk Management Practitioners: A Comparative Case Study of Customer Service Representatives, Insurance Agents and Risk Managers

Science.gov (United States)

Krauss, George E.

2009-01-01

The purpose of this study is to understand how selected insurance practitioners learn and developed in their practices setting. The selected insurance practitioners (collectively customer service representatives, insurance agents, and risk managers) are responsible for the counseling and placement of insurance products and the implementation of…

Incentivising flood risk adaptation through risk based insurance premiums : Trade-offs between affordability and risk reduction

NARCIS (Netherlands)

Hudson, Paul F.; Botzen, W.J.W.; Feyen, L.; Aerts, Jeroen C.J.H.

2016-01-01

The financial incentives offered by the risk-based pricing of insurance can stimulate policyholder adaptation to flood risk while potentially conflicting with affordability. We examine the trade-off between risk reduction and affordability in a model of public-private flood insurance in France and

31 CFR 50.12 - Clear and conspicuous disclosure.

Science.gov (United States)

2010-07-01

... a “surcharge.” (2) Premium to reflect definition of act of terrorism. If an insurer makes an initial..., consistent with the definition of an act of terrorism as amended by the Terrorism Risk Insurance Program....12 Section 50.12 Money and Finance: Treasury Office of the Secretary of the Treasury TERRORISM RISK...

Risk Pricing and Profit Maximization of Insurance Companies ...

African Journals Online (AJOL)

The research investigates the impact of pricing of risk on the profitability of Nigeria insurance market and also the relationship between operation expenses and profitability of the non-life insurance market in Nigeria. Results show that economy, competition and government regulation have effect on pricing of risk. Also, it was ...

Risk adjustment model of credit life insurance using a genetic algorithm

Science.gov (United States)

Saputra, A.; Sukono; Rusyaman, E.

2018-03-01

In managing the risk of credit life insurance, insurance company should acknowledge the character of the risks to predict future losses. Risk characteristics can be learned in a claim distribution model. There are two standard approaches in designing the distribution model of claims over the insurance period i.e, collective risk model and individual risk model. In the collective risk model, the claim arises when risk occurs is called individual claim, accumulation of individual claim during a period of insurance is called an aggregate claim. The aggregate claim model may be formed by large model and a number of individual claims. How the measurement of insurance risk with the premium model approach and whether this approach is appropriate for estimating the potential losses occur in the future. In order to solve the problem Genetic Algorithm with Roulette Wheel Selection is used.

How can sensitivity analysis improve the robustness of mathematical models utilized by the re/insurance industry?

Science.gov (United States)

Noacco, V.; Wagener, T.; Pianosi, F.; Philp, T.

2017-12-01

Insurance companies provide insurance against a wide range of threats, such as natural catastrophes, nuclear incidents and terrorism. To quantify risk and support investment decisions, mathematical models are used, for example to set the premiums charged to clients that protect from financial loss, should deleterious events occur. While these models are essential tools for adequately assessing the risk attached to an insurer's portfolio, their development is costly and their value for decision-making may be limited by an incomplete understanding of uncertainty and sensitivity. Aside from the business need to understand risk and uncertainty, the insurance sector also faces regulation which requires them to test their models in such a way that uncertainties are appropriately captured and that plans are in place to assess the risks and their mitigation. The building and testing of models constitutes a high cost for insurance companies, and it is a time intensive activity. This study uses an established global sensitivity analysis toolbox (SAFE) to more efficiently capture the uncertainties and sensitivities embedded in models used by a leading re/insurance firm, with structured approaches to validate these models and test the impact of assumptions on the model predictions. It is hoped that this in turn will lead to better-informed and more robust business decisions.

Catastrophic risk : Social influences on insurance decisions

NARCIS (Netherlands)

Krawczyk, Michal; Trautmann, Stefan; van de Kuilen, Gijs

We study behavioral patterns of insurance demand for low-probability large-loss events (catastrophic losses). Individual patterns of belief formation and risk attitude that were suggested in the behavioral decisions literature emerge robustly in the current set of insurance choices. However, social

Switching insurer in the Irish voluntary health insurance market: determinants, incentives, and risk equalization.

Science.gov (United States)

Keegan, Conor; Teljeur, Conor; Turner, Brian; Thomas, Steve

2016-09-01

The determinants of consumer mobility in voluntary health insurance markets providing duplicate cover are not well understood. Consumer mobility can have important implications for competition. Consumers should be price-responsive and be willing to switch insurer in search of the best-value products. Moreover, although theory suggests low-risk consumers are more likely to switch insurer, this process should not be driven by insurers looking to attract low risks. This study utilizes data on 320,830 VHI healthcare policies due for renewal between August 2013 and June 2014. At the time of renewal, policyholders were categorized as either 'switchers' or 'stayers', and policy information was collected for the prior 12 months. Differences between these groups were assessed by means of logistic regression. The ability of Ireland's risk equalization scheme to account for the relative attractiveness of switchers was also examined. Policyholders were price sensitive (OR 1.052, p sensitivity declined with age. Age (OR 0.971; p Consumers appear price-responsive, which is important for competition provided it is based on correct incentives. Risk equalization payments largely eliminated the profitable status of switchers, although further refinements may be required.

Risk Aversion, Loss Aversion, and the Demand for Insurance

Directory of Open Access Journals (Sweden)

Louis Eeckhoudt

2018-05-01

Full Text Available In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively documented in real insurance markets.

Examining unpriced risk heterogeneity in the Dutch health insurance market

NARCIS (Netherlands)

Withagen-Koster, A.A. (A. A.); R.C. van Kleef (Richard); F. Eijkenaar (Frank)

2018-01-01

textabstractA major challenge in regulated health insurance markets is to mitigate risk selection potential. Risk selection can occur in the presence of unpriced risk heterogeneity, which refers to predictable variation in health care spending not reflected in either premiums by insurers or risk

The case for risk-based premiums in public health insurance.

Science.gov (United States)

Zweifel, Peter; Breuer, Michael

2006-04-01

Uniform, risk-independent insurance premiums are accepted as part of 'managed competition' in health care. However, they are not compatible with optimality of health insurance contracts in the presence of both ex ante and ex post moral hazard. They have adverse effects on insurer behaviour even if risk adjustment is taken into account. Risk-based premiums combined with means-tested, tax-financed transfers are advocated as an alternative.

Blanket guarantee, deposit insurance, and risk-shifting incentive: evidence from Indonesia

OpenAIRE

Kariastanto, Bayu

2011-01-01

Indonesia established a deposit insurance system to maintain stability in its banking sector after the abolishment of blanket guarantees in 2005. Since the insurance premiums are fixed and flat, deposit insurance may create an incentive for banks to take more risks and transfer the risks to the deposit insurer. Using an option pricing based model of deposit insurance, we compute the fair deposit insurance premiums for all banks listed on the Indonesian stock exchange. We find evidence that ba...

Terrorism reports: The tip of the iceberg.

Science.gov (United States)

Ellenberg, Eytan; Taragin, Mark; Bar-On, Zvia; Cohen, Osnat; Ostfeld, Ishay

2017-01-01

Medical impact of terror is a public health issue as the threat is growing all over the world. Our objective was to compare the number of injured and incidents in the three different databases and reports [Global Terrorism Database (GTD), Israeli Security Agency (ISA) and National Insurance Institute (NII)] in Israel. Retrospective study. Analyses of three different databases (GTD, ISA and NII) and basic comparison. The victims reimbursed for medical expenses are the largest population. The number of injured as described by GTD and ISA database are less important. The 2010-2013 years are marked by more incidents recognized in Israel vs GTD assessment (except in 2014). The number of victims being reimbursed for medical and mental health services is radically different from the GTD and the ISA reports. Public Health specialists should be advised of this phenomenon to deliver their right approach (including mental health) to growing threat and develop new definition of victim of terror.

CAPTIVE AS AN INSURANCE FORMULA FOR RISK MANAGEMENT: ADVANTAGES AND DISADVANTAGES

Directory of Open Access Journals (Sweden)

R. Holly

2017-04-01

Full Text Available This article introduces subject of an insurance captive entity, with focus on how it could be used as insurance formula for risk management. Captive might be the most appropriate insurance formula for risk management. However, the level of achieved success depends on many factors.Insurance captivesare understood as entities which are formed and owned by companies mostly for the purpose of insuring own risks (pure captive or single parent captive. More and more often captives are also formed by a group of companies (group captives to insure their properties and liabilities towards 3rd parties. Captives are widely used by many companies nowadays. However, many of them,are used solely for a purpose of a risk cession and premium transfer, with an intention to use captivesmore as a profit center in a low taxation country rather than for the purpose of risk management (i.e. a more appropriate role for captive would be to support their owners in enterprise risk management - ERM. This article touches on why captives are not used to their full potential. It may be toochallenging for many decision makers to embrace on captives as risk management formula and extend captives' roles to utilize all possible advantages resulting from owning a captive. Captive can deliver risk management in a more comprehensive way than most commercial insurers on the market. The article also presents advantages and disadvantages of owning an insurance captive.

Ways and means of insuring against nuclear risks

International Nuclear Information System (INIS)

Campbell Miles, A.

1975-01-01

Despite stringent safety requirements imposed upon nuclear installations, the need for adequate insurance cover is motivated by the consideration that a nuclear accident could lead to very grave consequences. To marshal the large insurance capacity required, national pools were formed in many countries, which may enter into arrangements with other similar national pools to increase their own capacity with a view to an appropriate spread of the risks involved. In the absence of a national nuclear pool, application for nuclear insurance would normally be made to the national insurance market association concerned. Virtually every type of nuclear risk is insurable; various forms of material damage and liability insurances are available. The financial liability of nuclear operators is established by national legislation on the basis of international conventions. Insurance coverage is linked to the operator's amount of liability established by law. A third party nuclear liability insurance policy usually consists of three parts: Part I covers the operator's liability under his domestic nuclear legislation; Part II provides non-nuclear power for accidents on the site up to a separate liability limit selected by the operator; and Part III provides cover for costs. Other types of insurance deal with damage to the site and the installation (material damage), consequential losses, contingent liabilities of suppliers of goods and services (products liability), nuclear material in transit and nuclear-propelled ships. (author)

The boomerang affect of the war on terror

Directory of Open Access Journals (Sweden)

Carolin Goerzig

2010-11-01

Full Text Available Este artículo escruta las reacciones legislativas a los atentados en la ciudad de Oklahoma y los de Londres en 2005 para intentar descifrar como la legislación antiterrorista ha sustancialmente bloqueado estos ataques. Se intenta mostrar como la resistencia de los gobiernos y los ejecutivos aprueba índices críticos en las leyes antiterroristas. A la luz de una reciente encuesta sobre legislación antiterrorista mundial, los casos donde la legislación antiterrorista ha sido bloqueada ha llegado a ser verdaderamente crítica. A este fin, este artículo se pregunta por qué la legislación antiterrorista se bloquea cuando esto sucede. Para responder a esta cuestión, se han testado tres variables: la composición de los gobiernos, la opinión pública-basada en los niveles de terror en sus medios, y el nivel de acuerdos ejecutivos. Para testar estas variables, se han evaluado dos casos: la evolución de la legislación antiterrorista antes de los ataques de la ciudad de Oklahoma en 1995 y antes de los atentados de Londres de 2005. En la evaluación de los casos, los debates legislativos y ejecutivos han ocurrido antes de los ataques terroristas examinados y luego se han comparado los dos casos con el Reino Unido en 1974 y los Estados Unidos en 2001 cuando la legislación antiterrorista inicia su camino. Este artículo concluye que el nivel de acuerdos ejecutivos y la composición de los gobiernos tiene el mayor poder de explicación en determinadas decisiones antiterroristas que llevarán a secundar la legislación antiterrorista o no.Palabras clave: ataques terroristas a Londres, legislación antiterrorista, Estados Unidos, Reino Unido___________________________ABSTRACT:The goal of the war on terror is to prevent a new 9/11. In order to achieve this, the preemptive strike has been introduced to tackle the terrorism risk. However, this precisely leads to the increasing unpredictability of terrorism and hence the likelihood of a new 9

The risks at nuclear power stations and their insurance

International Nuclear Information System (INIS)

Schludi, H.N.

1994-01-01

Insurance can offer an uninterrupted insurance cover from start-up-to shut-down of a nuclear power station. This is assured by the insurance for the erection, for the nuclear liability, for the nuclear/fire, for the engines, for operational interruptions and for the transport. For each of the above mentioned insurance branches, essential characteristic features, such as risk carrier, protection range and insurance costs, are given. (orig.) [de

[Risk assessment expanded accident insurance for children].

Science.gov (United States)

Sittaro, N A

1998-08-01

Disability is a well known and tragic event for children. While adults are an established group for specific disability insurance cover, children were often neglected in the past. Although parents, organizations and paediatricans are aware of the risk, children specific incidence rates for disability are hardly available. The only sufficient source for some statistical data are the accident statistics because they represent a substantial group of specific cause related disability for children. Incidence rates for disease related chronic severe impairment or disability in children are either derived by single disease research or actuarial calculation of the German Social Disability Registration. Based on this statistical background, an extended accident insurance for children was introduced in Germany covering both accidents and disabling diseases. The key limitation for all variations of this insurance are exclusion clauses for congential diseases and mental disorders. This insurance requires a new approach in underwriting of the health risks. Because of the substantial number of impaired children, a simple decline of substandard cases are unacceptable. The early experience or medical underwriting shows predominantly health impairments of the following types: allergies, bronchial asthma, ectopic eczema (neurodermitis), disorders of speech and articulation, vision disorders and mental impairments. The suggested solution for underwriting of substandard risks is the predetermination of the possible future maximum degree of disability. The need for underwriting guidelines is supported by the market impact of the new disability cover with thousands of insurance policies issued in the first month after introduction.

Escalation of terrorism? On the risk of attacks with chemical, biological, radiological and nuclear weapons or materials

International Nuclear Information System (INIS)

Nass, Jens

2010-01-01

The report on the risk of attacks with chemical, biological, radiological and nuclear weapons or materials covers the following topics: the variety of terrorism: ethnic-nationalistic, politically motivated, social revolutionary, political extremism, religious fanaticism, governmental terrorism; CBRN (chemical, biological, radiological, nuclear) weapons and materials: their availability and effectiveness in case of use; potential actor groups; prevention and counter measures, emergency and mitigating measures.

Atomic risk insurance. Risk policy, safety production and expertise in Germany and the USA 1945 - 1986

International Nuclear Information System (INIS)

Wehner, Christoph

2017-01-01

The book covers the following chapters: (I) Between threat and promise: Political change and the corporate perception, the burden of the atomic bomb, promise of nuclear energy risk criticism in the pre-ecological phase, nuclear risk as investment restraint; (II) Risk policy at the insurability limit: hazard knowledge, safety production and insurance expertise in the German nuclear policy (1955-1962); (III) Risk policy beyond the catastrophe, insurability interpretation, concepts and conflicts (1957-1968); (IV) Scandalization of risk policy: safety production, confidence and expertise in the nuclear controversial debate (1969 - 1979); (V) Nuclear risk policy and the challenge of the ''risk society'' (1975-1986); (VI) From safety production to hazard probe: atomic energy And the change of insurance.

Framing of risk and preferences for annual and multi-year flood insurance

NARCIS (Netherlands)

Botzen, W.J.W.; de Boer, J.; Terpstra, T.

2013-01-01

The decision of many individuals in floodplains to not purchase flood insurance may impair the risk-spreading function of flood insurance markets. This study estimates the effectiveness of risk communication frames and insurance policy conditions in increasing demand for flood insurance. It is

Evolution of seismic risk management for insurance over the past 30 years

Science.gov (United States)

Shah, Haresh C.; Dong, Weimin; Stojanovski, Pane; Chen, Alex

2018-01-01

During the past 30 years, there has been spectacular growth in the use of risk analysis and risk management tools developed by engineers in the financial and insurance sectors. The insurance, the reinsurance, and the investment banking sectors have enthusiastically adopted loss estimation tools developed by engineers in developing their business strategies and for managing their financial risks. As a result, insurance/reinsurance strategy has evolved as a major risk mitigation tool in managing catastrophe risk at the individual, corporate, and government level. This is particularly true in developed countries such as US, Western Europe, and Japan. Unfortunately, it has not received the needed attention in developing countries, where such a strategy for risk management is most needed. Fortunately, in the last five years, there has been excellent focus in developing "InsurTech" tools to address the much needed "Insurance for the Masses", especially for the Asian Markets. In the earlier years of catastrophe model development, risk analysts were mainly concerned with risk reduction options through engineering strategies, and relatively little attention was given to financial and economic strategies. Such state-of-affairs still exists in many developing countries. The new developments in the science and technologies of loss estimation due to natural catastrophes have made it possible for financial sectors to model their business strategies such as peril and geographic diversification, premium calculations, reserve strategies, reinsurance contracts, and other underwriting tools. These developments have not only changed the way in which financial sectors assess and manage their risks, but have also changed the domain of opportunities for engineers and scientists. This paper will address the issues related to developing insurance/reinsurance strategies to mitigate catastrophe risks and describe the role catastrophe risk insurance and reinsurance has played in managing

The robustness of flood insurance regimes given changing risk resulting from climate change

Directory of Open Access Journals (Sweden)

Jessica Lamond

2014-01-01

Full Text Available The changing risk of flooding associated with climate change presents different challenges for the different flood insurance market models in use around the world, which vary in respect of consumer structure and their risk transfer mechanism. A review of international models has been undertaken against three broad criteria for the functioning and sustainability of a flood insurance scheme: knowing the nature of the insurable risk; the availability of an insurable population; and the presence of a solvent insurer. The solvency of insurance markets appears strong, partly because insurers and reinsurers can choose to exclude markets which would give rise to insolvency or can diversify their portfolios to include offsetting perils. Changing risk may threaten solvency if increasing risk is not recognised and adjusted for but insurability of flood risk may be facilitated by the use of market based and hybrid schemes offering greater diversification and more flexibility. While encouragement of mitigation is in theory boosted by risk based pricing, availability and affordability of insurance may be negatively impacted. This threatens the sustainability of an insurable population, therefore the inclusion of the state in partnership is beneficial in ensuring continuity of cover, addressing equity issues and incentivising mitigation.

46 CFR 308.409 - Standard form of War Risk Builder's Risk Insurance Policy, Form MA-283.

Science.gov (United States)

2010-10-01

... Policy, Form MA-283. 308.409 Section 308.409 Shipping MARITIME ADMINISTRATION, DEPARTMENT OF... of War Risk Builder's Risk Insurance Policy, Form MA-283. The standard form of War Risk Builder's Risk Insurance Policy, Form MA-283 may be obtained from the American War Risk Agency or MARAD. ...

Promoting flood risk reduction: The role of insurance in Germany and England

Science.gov (United States)

Surminski, Swenja; Thieken, Annegret H.

2017-10-01

Improving society's ability to prepare for, respond to and recover from flooding requires integrated, anticipatory flood risk management (FRM). However, most countries still focus their efforts on responding to flooding events if and when they occur rather than addressing their current and future vulnerability to flooding. Flood insurance is one mechanism that could promote a more ex ante approach to risk by supporting risk reduction activities. This paper uses an adapted version of Easton's System Theory to investigate the role of insurance for FRM in Germany and England. We introduce an anticipatory FRM framework, which allows flood insurance to be considered as part of a broader policy field. We analyze if and how flood insurance can catalyze a change toward a more anticipatory approach to FRM. In particular we consider insurance's role in influencing five key components of anticipatory FRM: risk knowledge, prevention through better planning, property-level protection measures, structural protection and preparedness (for response). We find that in both countries FRM is still a reactive, event-driven process, while anticipatory FRM remains underdeveloped. Collaboration between insurers and FRM decision-makers has already been successful, for example in improving risk knowledge and awareness, while in other areas insurance acts as a disincentive for more risk reduction action. In both countries there is evidence that insurance can play a significant role in encouraging anticipatory FRM, but this remains underutilized. Effective collaboration between insurers and government should not be seen as a cost, but as an investment to secure future insurability through flood resilience.

46 CFR 308.551 - War risk insurance clearing agency agreement for cargo, Form MA-321.

Science.gov (United States)

2010-10-01

... 46 Shipping 8 2010-10-01 2010-10-01 false War risk insurance clearing agency agreement for cargo... EMERGENCY OPERATIONS WAR RISK INSURANCE War Risk Cargo Insurance Iv-General § 308.551 War risk insurance... American War Risk Agency or MARAD. ...

Hedging against terrorism: Are US businesses prepared?

Science.gov (United States)

Kahan, Jerome H

2015-01-01

Private US companies face risks in connection with financial matters, but are not necessarily prepared to cope with risks that can seriously disrupt or even halt their operations, notably terrorist attacks and natural disasters. Enhancing the resilience of businesses when dealing with terrorism is especially challenging, as these groups or individuals can adapt tactics to exploit the vulnerabilities of companies they wish to target. Business managers need to formulate flexible preparedness plans that reduce risks from large-scale natural disasters as well as terrorist attacks. In doing so, they can take advantage of post-9/11 US government guidance for these endeavours as well as programmes that eliminate risks to private insurance entities so they can issue policies that cover terrorist strikes of high consequences. Just as business executives use hedging strategies in the world of finance, they also need operational hedging strategies as a means of exploiting as well as lowering the risks surrounding future uncertainties. Resources devoted to planning and hedging are investments that can increase the odds of businesses surviving and thriving, even if they experience high-impact terrorist attacks, threats or large-scale natural disasters, making suppliers, customers and stakeholders happy. The purpose of this paper is to give executives the incentive to take steps to do just that.

Escalation of terrorism? On the risk of attacks with chemical, biological, radiological and nuclear weapons or materials; Eskalation des Terrors? Ueber das Anschlagsrisiko mit chemischen, biologischen, radiologischen und nuklearen Waffen oder Stoffen

Energy Technology Data Exchange (ETDEWEB)

Nass, Jens

2010-07-01

The report on the risk of attacks with chemical, biological, radiological and nuclear weapons or materials covers the following topics: the variety of terrorism: ethnic-nationalistic, politically motivated, social revolutionary, political extremism, religious fanaticism, governmental terrorism; CBRN (chemical, biological, radiological, nuclear) weapons and materials: their availability and effectiveness in case of use; potential actor groups; prevention and counter measures, emergency and mitigating measures.

THE RISK OF TRANSFER OF GENES IN THE INSURANCE PROTECTION OF AGRICULTURAL PRODUCERS

Directory of Open Access Journals (Sweden)

Henrikh Hudz

2017-09-01

Full Text Available The paper deals with the risk of transfer of genes, its impact, and possible consequences for agricultural producers; the possibility of creating an insurance service, to address this risk. The purpose of the paper is to disclose the results of a study of the risk of transfer of genes in agriculture when organizing insurance coverage. The tasks of this paper are: to clarify the essence of genetic engineering as an object of providing insurance services; to define the concept of risk of transfer of genes, its specific features, impact, and possible consequences for agricultural producers; carry out a description of the possibility of creating an insurance service about the risk of transfer of genes. The object of the study is the risk of transfer of genes in insurance protection. The subject of the study is theoretical and methodological approaches to optimizing the risk of transfer of genes in insurance protection. Methodology. This work requires attracting a large number of scientists from different fields. Legal Aspects covered in the EU Regulation Terms №1829/2003 and 1830/2003 of the European Parliament and Council. A considerable attention to the legislative regulation of genetic engineering and risks in the use of genetic modification is given to the Cartagena Protocol on Biosafety. It should be noted that at present, economic literature and especially publications related to agricultural insurance protection do not pay attention to the risks associated with the transfer of transgenic organisms and the possibility of taking this risk to insurance. The work uses the experience of the US Department of Agriculture and the European Center for Insurance Legislation. The results of the study showed that the introduction of the insurance mechanism has the main difference in the fact that this operation takes into account as a person who suffered a loss, could get more profit than the fact of causing damage to another farmer. In this regard, the

Pathological responses to terrorism.

Science.gov (United States)

Yehuda, Rachel; Bryant, Richard; Marmar, Charles; Zohar, Joseph

2005-10-01

Many important gains have been made in understanding PTSD and other responses to trauma as a result of neuroscience-based observations. Yet there are many gaps in our knowledge that currently impede our ability to predict those who will develop pathologic responses. Such knowledge is essential for developing appropriate strategies for mounting a mental health response in the aftermath of terrorism and for facilitating the recovery of individuals and society. This paper reviews clinical and biological studies that have led to an identification of pathologic responses following psychological trauma, including terrorism, and highlights areas of future-research. It is important to not only determine risk factors for the development of short- and long-term mental health responses to terrorism, but also apply these risk factors to the prediction of such responses on an individual level. It is also critical to consider the full spectrum of responses to terrorism, as well as the interplay between biological and psychological variables that contribute to these responses. Finally, it is essential to remove the barriers to collecting data in the aftermath of trauma by creating a culture of education in which the academic community can communicate to the public what is and is not known so that survivors of trauma and terrorism will understand the value of their participation in research to the generation of useful knowledge, and by maintaining the acquisition of knowledge as a priority for the government and those involved in the immediate delivery of services in the aftermath of large-scale disaster or trauma.

State of terror: women at risk

OpenAIRE

The Karen Women’s Organisation

2008-01-01

Two reports researched and written by the Karen Women’sOrganisation – Shattering Silences in 2004 and State ofTerror in 20071 – document the wide range of humanrights abuses against Burmese women and girls.

Incentivising flood risk adaptation through ris based insurance premiums: trade-offs between affordability and risk reduction

NARCIS (Netherlands)

Hudson, P.G.M.B.; Botzen, W.J.W.; Feyen, L.; Aerts, J.C.J.H.

2016-01-01

The financial incentives offered by the risk-based pricing of insurance can stimulate policyholder adaptation to flood risk while potentially conflicting with affordability. We examine the trade-off between risk reduction and affordability in a model of public-private flood insurance in France and

Operational risk quantification and modelling within Romanian insurance industry

Directory of Open Access Journals (Sweden)

Tudor Răzvan

2017-07-01

Full Text Available This paper aims at covering and describing the shortcomings of various models used to quantify and model the operational risk within insurance industry with a particular focus on Romanian specific regulation: Norm 6/2015 concerning the operational risk issued by IT systems. While most of the local insurers are focusing on implementing the standard model to compute the Operational Risk solvency capital required, the local regulator has issued a local norm that requires to identify and assess the IT based operational risks from an ISO 27001 perspective. The challenges raised by the correlations assumed in the Standard model are substantially increased by this new regulation that requires only the identification and quantification of the IT operational risks. The solvency capital requirement stipulated by the implementation of Solvency II doesn’t recommend a model or formula on how to integrate the newly identified risks in the Operational Risk capital requirements. In this context we are going to assess the academic and practitioner’s understanding in what concerns: The Frequency-Severity approach, Bayesian estimation techniques, Scenario Analysis and Risk Accounting based on risk units, and how they could support the modelling of operational risk that are IT based. Developing an internal model only for the operational risk capital requirement proved to be, so far, costly and not necessarily beneficial for the local insurers. As the IT component will play a key role in the future of the insurance industry, the result of this analysis will provide a specific approach in operational risk modelling that can be implemented in the context of Solvency II, in a particular situation when (internal or external operational risk databases are scarce or not available.

Victim countries of transnational terrorism: an empirical characteristics analysis.

Science.gov (United States)

Elbakidze, Levan; Jin, Yanhong

2012-12-01

This study empirically investigates the association between country-level socioeconomic characteristics and risk of being victimized in transnational terrorism events. We find that a country's annual financial contribution to the U.N. general operating budget has a positive association with the frequency of being victimized in transnational terrorism events. In addition, per capita GDP, political freedom, and openness to trade are nonlinearly related to the frequency of being victimized in transnational terrorism events. © 2012 Society for Risk Analysis.

Engineering models for catastrophe risk and their application to insurance

Science.gov (United States)

Dong, Weimin

2002-06-01

Internationally earthquake insurance, like all other insurance (fire, auto), adopted actuarial approach in the past, which is, based on historical loss experience to determine insurance rate. Due to the fact that earthquake is a rare event with severe consequence, irrational determination of premium rate and lack of understanding scale of potential loss led to many insurance companies insolvent after Northridge earthquake in 1994. Along with recent advances in earth science, computer science and engineering, computerized loss estimation methodologies based on first principles have been developed to the point that losses from destructive earthquakes can be quantified with reasonable accuracy using scientific modeling techniques. This paper intends to introduce how engineering models can assist to quantify earthquake risk and how insurance industry can use this information to manage their risk in the United States and abroad.

Health Insurance and Risk of Divorce: Does Having Your Own Insurance Matter?

Science.gov (United States)

Sohn, Heeju

2016-01-01

Most American adults under 65 obtain health insurance through their employers or their spouses’ employers. The absence of a universal healthcare system in the United States puts Americans at considerable risk for losing their coverage when transitioning out of jobs or marriages. Scholars have found evidence of reduced job mobility among individuals who are dependent on their employers for healthcare coverage. This paper finds similar relationships between insurance and divorce. I apply the hazard model to married individuals in the longitudinal Survey of Income Program Participation (N=17,388) and find lower divorce rates among people who are insured through their partners’ plans without alternative sources of their own. Furthermore, I find gender differences in the relationship between healthcare coverage and divorce rates: insurance dependent women have lower rates of divorce than men in similar situations. These findings draw attention to the importance of considering family processes when debating and evaluating health policies. PMID:26949269

THE RISK INSURANCE EFFICIENCY OF BUSINESS ACTIVITY IN THE AGRICULTURAL SECTOR

Directory of Open Access Journals (Sweden)

O. Lobova

2014-03-01

Full Text Available The necessity of business activity insurance in the agricultural sector is grounded in this article. Different types of agricultural risks are described. The principles, on which the efficiency of agricultural insurance is based, are determined. Such as: voluntary; the farmers interest; risk management; multivariate product line; promote farmers efficient; equal access to subsidies from farmers; balance; transparency and coordination of the subsidies transfer; creating a reliable and multi-level system of insurance coverage; binding institute of independent examination. The different ways to determine the effectiveness of insurance are considered.

State of terror: women at risk

Directory of Open Access Journals (Sweden)

The Karen Women’s Organisation

2008-04-01

Full Text Available Two reports researched and written by the Karen Women’sOrganisation – Shattering Silences in 2004 and State ofTerror in 20071 – document the wide range of humanrights abuses against Burmese women and girls.

Introduction to insurance mathematics technical and financial features of risk transfers

CERN Document Server

Olivieri, Annamaria

2015-01-01

This second edition expands the first chapters, which focus on the approach to risk management issues discussed in the first edition, to offer readers a better understanding of the risk management process and the relevant quantitative phases. In the following chapters the book examines life insurance, non-life insurance and pension plans, presenting the technical and financial aspects of risk transfers and insurance without the use of complex mathematical tools.   The book is written in a comprehensible style making it easily accessible to advanced undergraduate and graduate students in Economics, Business and Finance, as well as undergraduate students in Mathematics who intend starting on an actuarial qualification path. With the systematic inclusion of practical topics, professionals will find this text useful when working in insurance and pension related areas, where investments, risk analysis and financial reporting play a major role.

On the economic risk capital of portfolio insurance

Directory of Open Access Journals (Sweden)

Werner Hürlimann

2004-09-01

Full Text Available A formula for the conditional value-at-risk of classical portfolio insurance is derived and shown to be constant for sufficiently small loss probabilities. As illustrations, we discuss portfolio insurance for an equity market index using empirical data, and analyze the more general multivariate situation of a portfolio of risky assets.

Partnerships for disaster risk insurance in the EU

Science.gov (United States)

Mysiak, Jaroslav; Dionisio Pérez-Blanco, C.

2016-11-01

With increasing costs inflicted by natural hazard perils, and amidst state budget cuts, concerns are mounting about the capacity of governments to design sustainable, equitable and affordable risk management schemes. The participation of the private sector along with the public one through public-private partnerships (PPPs) has gained importance as a means of providing catastrophic natural hazard insurance to address these seemingly conflicting objectives. In 2013 the European Commission launched a wide-ranging consultation about what EU action could be appropriate to improve the performance of insurance markets. Simultaneously, the EU legislator instigated major reforms in the legislation and regulations that pertain to how PPPs are designed or operate. This paper has a dual objective: first, we review and summarize the manifold legal background that influences the provision of insurance against natural catastrophes. Second, we examine how PPPs designed for sharing and transferring risk operate within the European regulatory constraints, illustrated using the example of the UK Flood Reinsurance Scheme (Flood RE) between the state and the Association of British Insurers.

Terrorism, Anti-Terrorism, and the Copycat Effect

DEFF Research Database (Denmark)

Jensen, Thomas

that an increase in anti-terrorism makes it more likely that cells will plan small rather than large attacks. Furthermore, we see that an increase in anti-terrorism can make a terrorist attack more likely. Analyzing the problem of optimal anti-terrorism we see that the introduction of a copycat effect rationalizes...... an increase in the level of anti-terrorism after a large attack. Using this result we show how the copycat effect changes the dynamic pattern of terrorism attacks and what the long run consequences are...

Terrorism in Canada.

Science.gov (United States)

Kollek, Daniel

2003-01-01

This paper reviews terrorism in Canada, assessing the incidence and nature of terrorist activity, the potential targets of terrorist attacks, risk factors to Canadian nationals and institutions, and the responses of the Canadian government in dealing with the threat and the effectiveness of those responses. Despite the fact that there have been no recent high-profile terrorist events in Canada, this country has a serious terrorism problem, the key manifestation of which is the multitude of terrorist organizations that have designated Canada as a base of operations. In addition, Canadians have been attacked overseas and Canadian organizations, both local and abroad, are potential targets of terrorist activity. Canadian attempts to deal with terrorism through foreign and domestic policy have been ineffective, primarily because the policies have been poorly enforced. Until recently, terrorist organizations legally could raise funds in Canada, in direct contravention of international treaties signed by Canada. It is possible that the ineffectiveness in enforcing the anti-terrorism legislation stems from hope that placating terrorist organizations, and the countries that support them, will prevent Canada from becoming a target. Unfortunately evidence from other countries has shown this strategy to be ineffective.

Sleep Terrors (Night Terrors)

Science.gov (United States)

... terrors or other family members Lead to safety concerns or injury Result in daytime symptoms of excessive sleepiness or problems functioning Continue beyond the teen years or start in adulthood Causes Sleep terrors ...

Public and private health insurance in Germany: the ignored risk selection problem.

Science.gov (United States)

Grunow, Martina; Nuscheler, Robert

2014-06-01

We investigate risk selection between public and private health insurance in Germany. With risk-rated premiums in the private system and community-rated premiums in the public system, advantageous selection in favor of private insurers is expected. Using 2000 to 2007 data from the German Socio-Economic Panel Study (SOEP), we find such selection. While private insurers are unable to select the healthy upon enrollment, they profit from an increase in the probability to switch from private to public health insurance of those individuals who have experienced a negative health shock. To avoid distorted competition between the two branches of health care financing, risk-adjusted transfers from private to public insurers should be instituted. Copyright © 2013 John Wiley & Sons, Ltd.

Risk reduction in a changing insurance climate: examples from the US and UK

Science.gov (United States)

Horn, Diane; McShane, Michael

2015-04-01

Coastal cities face a range of increasingly severe challenges as sea level rises, and adaptation to future flood risk will require more than structural defences. Many cities will not be able to rely solely on engineering structures for protection and will need to develop a suite of policy responses to increase their resilience to impacts of rising sea level. Insurance can be used as a risk-sharing mechanism to encourage adaptation to sea level rise, using pricing or restrictions on availability of cover to discourage new development in flood risk areas or to encourage the uptake of flood resilience measures. We draw on flood insurance policy lessons learned from the United States and the United Kingdom to propose risk-sharing among private insurers/reinsurers, government, and policyholders to alleviate major issues of the current programs, while still maintaining a holistic approach to managing flood risk. The UK and the US are almost polar opposites in the way flood insurance is implemented. Flood insurance in the US is fully public and in the UK fully private; however, in both countries the participants feel that the established system is unsustainable. In the US, flood coverage is excluded from property policies provided by private insurers, and is only available through the National Flood Insurance Program (NFIP), with the federal government acting as insurer of last resort. Flood risk reduction has been part of the NFIP remit since the introduction of the program in 1968. Following massive payments for flood claims related primarily to Hurricanes Katrina and Sandy, the NFIP is approximately 26 billion in debt, prompting calls to bring private insurance back into the flood insurance business. Two major Congressional modifications to the NFIP in 2012 and 2014 have pushed the contradictory goals of fully risk-based, yet affordable premiums. The private market has not been significantly involved in a risk-bearing role, but that is changing as private insurers

Nuclear terrorism: Facts and fiction

International Nuclear Information System (INIS)

Kamp, K.H.

1994-01-01

The study tries to assess the risk of nuclear terrorism in the light of recent developments in the area of nuclear weapons proliferation, and to develop suggestions of how to cope with existing challenges. First of all the term of ''nuclear terrorism'' is defined and differentiated from other forms of nuclear crimes. In a second step the attempt is made to compile the findings and assessments of the past on the problem of nuclear terrorism. Since, as a rule, a threat potential is composed of 'intentions' and 'capabilities', a third part is dedicated to terrorist intentions and studies the degree of probability of terrorists considering nuclear weapons an appropriate means for their aims. In connection with 'capabilities' it is scrutinized whether terrorist groups will be able at all to procure, design or initiate nuclear warheads. This leads to the question as to which consequences result from nuclear safety shortcomings - in particular in Russia - with a view to nuclear terrorism. Based on the preceding considerations, several proposals for coping with the danger of nuclear terrorism are made. (orig./HP) [de

Catastrophic risks and insurance in farm-level decision making

NARCIS (Netherlands)

Ogurtsov, V.

2008-01-01

Keywords: risk perception, risk attitude, catastrophic risk, insurance, farm characteristics, farmer personal characteristics, utility-efficient programming, arable farming, dairy farming

Catastrophic risks can cause severe cash flow problems for farmers or even result into their

Financial risk and derivatives a special issue of the geneva papers on risk and insurance theory

CERN Document Server

Subrahmanyam, Marti

1996-01-01

Financial Risk and Derivatives provides an excellent illustration of the links that have developed in recent years between the theory of finance on one hand and insurance economics and actuarial science on the other. Advances in contingent claims analysis and developments in the academic and practical literature dealing with the management of financial risks reflect the close relationships between insurance and innovations in finance. The book represents an overview of the present state of the art in theoretical research dealing with financial issues of significance for insurance science. It will hopefully provide an impetus to further developments in applied insurance research.

Risk, Credit, and Insurance in Peru: Field Experimental Evidence

OpenAIRE

Galarza, Francisco

2009-01-01

This paper reports the results of behavioral economic experiments conducted in Peru to examine the relationship amongst risk preferences, loan take-up, and insurance purchase decisions. This area-based yield insurance can help reduce people's vulnerability to large scale covariate shocks, and can also lower the loan default probability under extreme negative covariate shocks. In a context of collateralized formal credit markets, we provide suggestive evidence that insurance may help reduce th...

Scientific relevance of Swiss property insurance data on flood risks and losses

Science.gov (United States)

Röthlisberger, Veronika; Bernet, Daniel; Keiler, Margreth

2015-04-01

The databases of Swiss flood insurance companies build a valuable but to date rarely used source of information for flood risk research. Detailed insights into the Swiss flood insurance system are crucial to evaluate the potential of the different databases for scientific analysis. Even though the flood insurance system modalities are mainly regulated on cantonal level there are some common principles that apply throughout Switzerland. First of all coverage against floods (and other particular natural hazards) is an integral part of every fire insurance policy for buildings or contents in Switzerland. This coupling of insurance as well as the statutory obligation to insure buildings in most of the cantons and movables in some of the cantons lead to a very high penetration. Second, in case of damage, the reinstatement costs (value as new) are compensated and third there are no (or little) deductible and co-pay. Thus the different datasets of the flood insurance companies would allow a very comprehensive data analysis. Moreover, insurance companies not only store electronically data about losses (typically date, amount of claims payment, cause of damage, identity of the insured object or policyholder) but also about insured objects. For insured objects the (insured) value and the details on the policy and its holder are the main feature to record. On buildings the insurance companies usually computerize additional information such as location, volume, year of construction or purpose of use. For the 19 (of total 26) cantons with a cantonal monopoly insurer the data of these insurance establishments have the additional value to represent (almost) the entire building stock of the respective canton. However, scientists face a wide range of the opportunities and challenges when using insurance data for flood research. The origin of flood insurance data implies that they are not generated for research but for business management. The presentation will highlighted pro and

Risk Minimization for Insurance Products via F-Doubly Stochastic Markov Chains

Directory of Open Access Journals (Sweden)

Francesca Biagini

2016-07-01

Full Text Available We study risk-minimization for a large class of insurance contracts. Given that the individual progress in time of visiting an insurance policy’s states follows an F -doubly stochastic Markov chain, we describe different state-dependent types of insurance benefits. These cover single payments at maturity, annuity-type payments and payments at the time of a transition. Based on the intensity of the F -doubly stochastic Markov chain, we provide the Galtchouk-Kunita-Watanabe decomposition for a general insurance contract and specify risk-minimizing strategies in a Brownian financial market setting. The results are further illustrated explicitly within an affine structure for the intensity.

Flood risk and insurance loss potential in the Thames Gateway

Science.gov (United States)

Eldridge, J.; Horn, D.

2009-04-01

The Thames Gateway, currently Europe's largest regeneration project, is an area of redevelopment located in the South East of England, with Government plans to create up to 160,000 new homes and 180,000 new jobs by 2016. Although the new development is intended to contribute £12bn annually to the economy, the potential flood risk is high, with much of the area situated on Thames tidal floodplain and vulnerable to both storm surges and peak river flows. This poses significant hazard to those inhabiting the area and has raised concern amongst the UK insurance industry, who would be liable for significant financial claims if a large flood event were to occur, particularly with respect to the number of new homes and businesses being built in flood risk areas. Flood risk and the potential damage to both lives and assets in vulnerable areas have gained substantial recognition, in light of recent flooding events, from both governmental agencies and in the public's awareness of flood hazard. This has resulted in a change in UK policy with planning policy for flood risk (PPS25, Planning Policy Statement 25) adopting a more strategic approach to development, as well as a new Flooding and Water Bill which is due for consultation in 2009. The Government and the Association of British Insurers, who represent the UK insurance industry, have also recently changed their Statement of Principles which guides provision of flood insurance in the future. This PhD research project aims to quantify flood risk in the Thames Gateway area with a view to evaluating the insurance loss potential under different insurance and planning scenarios. Using current sources of inundation extent, and incorporating varying insurance penetration rates and degrees of adoption of planning policy and guidance, it focuses on estimating flood risk under these different scenarios. This presentation introduces the development of the project and the theory and methodology which will be used to address the

The dislocations of terror: Assessments of risk during the Second Intifada.

Science.gov (United States)

Spilerman, Seymour; Stecklov, Guy

2013-05-01

The goal of terrorism is to create havoc and disrupt the normal functioning of society. To understand the impact of terrorism on a country it is useful to consider two types of country experiences with these shocks to the social order-the instance of a very small number of attacks against high profile targets and the case of chronic terror with a great number of attacks, generally against targets that are part of routine daily activities. The present study explores the Israeli experience with chronic terror. Using expenditure information from coffee shops and restaurants we examine how individuals assess their vulnerability to an attack and adjust their behavior. Specifically, we explore whether distance from the site of an attack, and similarity of a contemplated undertaking to the target of a recent attack, influence decision making in a context of chronic terror. We find strong support for a situational similarity effect but only weak evidence for a proximity effect. We examine the implications of these findings for the organization of economic activity. Copyright © 2012 Elsevier Inc. All rights reserved.

Risk Management: Getting the Most for Your Insurance Dollars

Science.gov (United States)

Abramson, Paul

1973-01-01

Analyze what insurance is intended to do by going through the risk management process: identify exposures to loss, measure their financial impact on the institution, rationalize the means of controlling exposures, prevent loss, and set up a program to minimize the impact of loss through insurance or other means. (Author)

Deposit Insurance and Risk Shifting in a Strong Regulatory Environment

DEFF Research Database (Denmark)

Bartholdy, Jan; Justesen, Lene Gilje

This study provides empirical evidence on the moral hazard implications of introducing deposit insurance into a strong regulatory environment. Denmark offers a unique setting because commercial banks and savings banks have different ownership structures, but are subject to the same set...... of regulations. The ownership structure in savings banks implies that they have no incentive to increase risk after the implementation of a deposit insurance scheme whereas commercial banks have. Also, at the time of introduction, Denmark had high capital requirements and a strict closure policy. Using...... a difference-in-difference framework we show that commercial banks did not increase their risk compared to savings banks when deposit insurance was introduced. The results also hold for large commercial banks, indicating that the systemic risk did not increase either. Thus for a system with high capital...

A Two-Account Life Insurance Model for Scenario-Based Valuation Including Event Risk

DEFF Research Database (Denmark)

Jensen, Ninna Reitzel; Schomacker, Kristian Juul

2015-01-01

Using a two-account model with event risk, we model life insurance contracts taking into account both guaranteed and non-guaranteed payments in participating life insurance as well as in unit-linked insurance. Here, event risk is used as a generic term for life insurance events, such as death......, disability, etc. In our treatment of participating life insurance, we have special focus on the bonus schemes “consolidation” and “additional benefits”, and one goal is to formalize how these work and interact. Another goal is to describe similarities and differences between participating life insurance...... product types. This enables comparison of participating life insurance products and unit-linked insurance products, thus building a bridge between the two different ways of formalizing life insurance products. Finally, our model distinguishes itself from the existing literature by taking into account...

Nuclear terrorism

International Nuclear Information System (INIS)

2002-01-01

Recent reports of alleged terrorist plans to build a 'dirty bomb' have heightened longstanding concerns about nuclear terrorism. This briefing outlines possible forms of attack, such as: detonation of a nuclear weapon; attacks involving radioactive materials; attacks on nuclear facilities. Legislation addressing these risks and the UK's strategy for coping with them are also considered

Health-based risk neutralization in private disability insurance

NARCIS (Netherlands)

Wijnvoord, Elisabeth C.; Buitenhuis, Jan; Brouwer, Sandra; van der Klink, Jac J. L.; de Boer, Michiel R.

2016-01-01

Background: Exclusions are used by insurers to neutralize higher than average risks of sickness absence (SA). However, differentiating risk groups according to one's medical situation can be seen as discrimination against people with health problems in violation of a 2006 United Nations convention.

Health-based risk neutralization in private disability insurance

NARCIS (Netherlands)

Wijnvoord, Elisabeth C; Buitenhuis, Jan; Brouwer, Sandra; van der Klink, Jac J L; de Boer, Michiel R

2016-01-01

BACKGROUND: Exclusions are used by insurers to neutralize higher than average risks of sickness absence (SA). However, differentiating risk groups according to one's medical situation can be seen as discrimination against people with health problems in violation of a 2006 United Nations convention.

Upravljanje Rizicima Osiguravajućih Kompanija / Risk Management of Insurance Companies

Directory of Open Access Journals (Sweden)

Zeljić Danijela

2015-06-01

Full Text Available When providing protection to the insurees, insurance companies are faced with many risks which are classified in different ways. Risks are increasingly diverse, and the globalization of business has led to a greater probability in terms of their achievements, as well as to the high intensity of the possible consequences. Because of this the process of risk management is a major challenge of modern insurance companies.

Space tourism risks: A space insurance perspective

Science.gov (United States)

Bensoussan, Denis

2010-06-01

Space transportation is inherently risky to humans, whether they are trained astronauts or paying tourists, given that spaceflight is still in its relative infancy. However, this is easy to forget when subjected to the hype often associated with space tourism and the ventures seeking to enter that market. The development of commercial spaceflight constitutes a challenge as much as a great opportunity to the insurance industry as new risks emerge and standards, policies and procedures to minimise/mitigate and cover them still to be engineered. Therefore the creation of a viable and affordable insurance regime for future space tourists is a critical step in the development of a real space tourism market to address burning risk management issues that may otherwise ultimately hamper this nascent industry before it has a chance to prove itself.

Using the adaptive cycle in climate-risk insurance to design resilient futures

Science.gov (United States)

Cremades, R.; Surminski, S.; Máñez Costa, M.; Hudson, P.; Shrivastava, P.; Gascoigne, J.

2018-01-01

Assessing the dynamics of resilience could help insurers and governments reduce the costs of climate-risk insurance schemes and secure future insurability in the face of an increase in extreme hydro-meteorological events related to climate change.

Partnerships for disaster risk insurance in the EU

Directory of Open Access Journals (Sweden)

J. Mysiak

2016-11-01

Full Text Available With increasing costs inflicted by natural hazard perils, and amidst state budget cuts, concerns are mounting about the capacity of governments to design sustainable, equitable and affordable risk management schemes. The participation of the private sector along with the public one through public–private partnerships (PPPs has gained importance as a means of providing catastrophic natural hazard insurance to address these seemingly conflicting objectives. In 2013 the European Commission launched a wide-ranging consultation about what EU action could be appropriate to improve the performance of insurance markets. Simultaneously, the EU legislator instigated major reforms in the legislation and regulations that pertain to how PPPs are designed or operate. This paper has a dual objective: first, we review and summarize the manifold legal background that influences the provision of insurance against natural catastrophes. Second, we examine how PPPs designed for sharing and transferring risk operate within the European regulatory constraints, illustrated using the example of the UK Flood Reinsurance Scheme (Flood RE between the state and the Association of British Insurers.

Interest rate risk of life insurers: Evidence from accounting data

OpenAIRE

Möhlmann, Axel

2017-01-01

Life insurers are exposed to interest rate risk, and their liability side is typically more sensitive to interest rate changes than their asset side. This paper develops an accounting-based measure of interest rate sensitivity. My approach uses the coexistence of historical cost and market value accounting, which permits the observation of valuations for different discount rates. Using microdata, I show that German life insurers have a significant exposure to interest rate risk. However, ther...

Game Theory, Probabilistic Risk, and Randomized Strategy: The Rulebook Revisited with Emphasis on Coast Guard Mission Space

Science.gov (United States)

2011-12-01

Anti-terrorism Risk Based Decision Aid ASME American Society of Mechanical Engineers BTRA Biological Agent Risk Analysis C Consequence CI/KR...then, insurance companies have been flourishing, using a disciplined risk analysis approach known today as actuarial science (e.g., Hubbard, 2009, p...59). Actuarial science was perhaps the first quantitative risk assessment technique. Taking a closer look, this kind of assessment can be broken

Risk Management and Nuclear Insurance Program within Societatea Nationala Nuclearelectrica S.A

International Nuclear Information System (INIS)

Havris, Alexandru

2008-01-01

This paper shall present the Risk Management and associated nuclear insurance program developed within Societatea Nationala 'Nuclearelectrica' S.A, owner and operator of Units 1 and 2 Cernavoda NPP, the Nuclear Fuel Plant and in charge with commissioning of Units 3 and 4. From the risk management perspective, the main aspects that energy industry has to face due to global economic changes within a dynamic business environment are highlighted. In order to mitigate the operational and investment associated risks, Societatea Nationala 'Nuclearelectrica' S.A. successfully developed, implemented and maintained a coherent insurance program both on local and international insurance market. (authors)

Do insurers respond to risk adjustment? A long-term, nationwide analysis from Switzerland.

Science.gov (United States)

von Wyl, Viktor; Beck, Konstantin

2016-03-01

Community rating in social health insurance calls for risk adjustment in order to eliminate incentives for risk selection. Swiss risk adjustment is known to be insufficient, and substantial risk selection incentives remain. This study develops five indicators to monitor residual risk selection. Three indicators target activities of conglomerates of insurers (with the same ownership), which steer enrollees into specific carriers based on applicants' risk profiles. As a proxy for their market power, those indicators estimate the amount of premium-, health care cost-, and risk-adjustment transfer variability that is attributable to conglomerates. Two additional indicators, derived from linear regression, describe the amount of residual cost differences between insurers that are not covered by risk adjustment. All indicators measuring conglomerate-based risk selection activities showed increases between 1996 and 2009, paralleling the establishment of new conglomerates. At their maxima in 2009, the indicator values imply that 56% of the net risk adjustment volume, 34% of premium variability, and 51% cost variability in the market were attributable to conglomerates. From 2010 onwards, all indicators decreased, coinciding with a pre-announced risk adjustment reform implemented in 2012. Likewise, the regression-based indicators suggest that the volume and variance of residual cost differences between insurers that are not equaled out by risk adjustment have decreased markedly since 2009 as a result of the latest reform. Our analysis demonstrates that risk-selection, especially by conglomerates, is a real phenomenon in Switzerland. However, insurers seem to have reduced risk selection activities to optimize their losses and gains from the latest risk adjustment reform.

Terrorism in Australia: factors associated with perceived threat and incident-critical behaviours

Directory of Open Access Journals (Sweden)

Raphael Beverley

2009-03-01

Full Text Available Abstract Background To help improve incident preparedness this study assessed socio-demographic and socio-economic predictors of perceived risk of terrorism within Australia and willingness to comply with public safety directives during such incidents. Methods The terrorism perception question module was incorporated into the New South Wales Population Health Survey and was completed by a representative sample of 2,081 respondents in early 2007. Responses were weighted against the New South Wales population. Results Multivariate analyses indicated that those with no formal educational qualifications were significantly more likely (OR = 2.10, 95%CI:1.32–3.35, p Conclusion Low education level is a risk factor for high terrorism risk perception and concerns regarding potential impacts. The pattern of concern and response among those of migrant background may reflect secondary social impacts associated with heightened community threat, rather than the direct threat of terrorism itself. These findings highlight the need for terrorism risk communication and related strategies to address the specific concerns of these sub-groups as a critical underpinning of population-level preparedness.

The threat of nuclear terrorism: from analysis to precautionary measures

International Nuclear Information System (INIS)

Schneider, M.

2003-01-01

Facing the nuclear terrorism risk, this document analyzes the nature of the threat of nuclear terrorism, the risk of attack on nuclear installations, the limited protection of nuclear installations against aircraft crashes, the case of nuclear reprocessing plants, the case of nuclear transport and proposes measures which should be taken without endangering the foundations of democracy. (A.L.B.)

The threat of nuclear terrorism: from analysis to precautionary measures

Energy Technology Data Exchange (ETDEWEB)

Schneider, M

2003-07-01

Facing the nuclear terrorism risk, this document analyzes the nature of the threat of nuclear terrorism, the risk of attack on nuclear installations, the limited protection of nuclear installations against aircraft crashes, the case of nuclear reprocessing plants, the case of nuclear transport and proposes measures which should be taken without endangering the foundations of democracy. (A.L.B.)

Dynamism and the erosion of procedural safeguards in international governance of terrorism

NARCIS (Netherlands)

N.T. Ali (Nathanael)

2015-01-01

markdownabstractAbstract Contemporary international governance of terrorism reflects a conceptualisation of terrorism as a global public problem that both affects and needs to be responded to by all sectors of global society. Consequently, counter-terrorism has taken the form of proactive risk

Terrorism in Australia: factors associated with perceived threat and incident-critical behaviours.

Science.gov (United States)

Stevens, Garry; Agho, Kingsley; Taylor, Melanie; Barr, Margo; Raphael, Beverley; Jorm, Louisa

2009-03-27

To help improve incident preparedness this study assessed socio-demographic and socio-economic predictors of perceived risk of terrorism within Australia and willingness to comply with public safety directives during such incidents. The terrorism perception question module was incorporated into the New South Wales Population Health Survey and was completed by a representative sample of 2,081 respondents in early 2007. Responses were weighted against the New South Wales population. Multivariate analyses indicated that those with no formal educational qualifications were significantly more likely (OR = 2.10, 95%CI:1.32-3.35, p terrorism risk perception and concerns regarding potential impacts. The pattern of concern and response among those of migrant background may reflect secondary social impacts associated with heightened community threat, rather than the direct threat of terrorism itself. These findings highlight the need for terrorism risk communication and related strategies to address the specific concerns of these sub-groups as a critical underpinning of population-level preparedness.

Terrorism in Australia: factors associated with perceived threat and incident-critical behaviours

Science.gov (United States)

Stevens, Garry; Agho, Kingsley; Taylor, Melanie; Barr, Margo; Raphael, Beverley; Jorm, Louisa

2009-01-01

Background To help improve incident preparedness this study assessed socio-demographic and socio-economic predictors of perceived risk of terrorism within Australia and willingness to comply with public safety directives during such incidents. Methods The terrorism perception question module was incorporated into the New South Wales Population Health Survey and was completed by a representative sample of 2,081 respondents in early 2007. Responses were weighted against the New South Wales population. Results Multivariate analyses indicated that those with no formal educational qualifications were significantly more likely (OR = 2.10, 95%CI:1.32–3.35, p terrorism risk perception and concerns regarding potential impacts. The pattern of concern and response among those of migrant background may reflect secondary social impacts associated with heightened community threat, rather than the direct threat of terrorism itself. These findings highlight the need for terrorism risk communication and related strategies to address the specific concerns of these sub-groups as a critical underpinning of population-level preparedness. PMID:19323842

Solvency II approach to the risk management in commercial insurance companies

Directory of Open Access Journals (Sweden)

Eva Vávrová

2010-01-01

Full Text Available In the year 2001, the European Comission started to revise the legislation Solvency I and to implement a new approach called Solvency II. The regulation called Solvency II is based on regulation considering management of risks of commercial insurance companies. Changes on financial markets and the contemporary financial crisis made financial authorities to formulate principles of regulation based on risk management. Commercial insurance companies across Europe will face a considerable amount of work to be ready for requirements related with Solvency II implementation in the year 2012. Rating agencies, regulators and investors today are demanding that insurers provide detailed assessments of their risk tolerance and quantify the adequacy of their economic capital. To complete such assessments requires a credible baseline for underwriting volatility. Modern portfolio theory for assets teaches that increasing the number of stocks in a portfolio will diversify and reduce the portfolio risk, but will not eliminate risk completely, the systemic market risk remains. In the same way, insurers can reduce underwriting volatility by increasing account volume, but they cannot reduce their volatility to zero. A certain level of systemic insurance risk will always remain, due to factors such as for example the underwriting cycle, macroeconomic factors, legal changes and weather.This presented scientific paper focuses on an analysis of specific goals of the regulation Solvency II and the structure of second pillar of the three-pillar construction (similarity with Basel II banking regulation of Solvency II. The paper was written as part of research project MSM 6215648904, carried out by the Faculty of Business and Economics, under the title “The Czech Republic in the pro­ces­ses of integration and globalization, and the development of the agriculture and service sector in the new conditions of the integrated European market”, following the goals and

Risk Management and Nuclear Insurance Program within Societatea Nationala Nuclearelectrica S.A

Energy Technology Data Exchange (ETDEWEB)

Havris, Alexandru [Societatea Nationala Nuclearelectrica S.A, 65 Polona Street, code 010494, sector 1, Bucharest (Romania)

2008-07-01

This paper shall present the Risk Management and associated nuclear insurance program developed within Societatea Nationala 'Nuclearelectrica' S.A, owner and operator of Units 1 and 2 Cernavoda NPP, the Nuclear Fuel Plant and in charge with commissioning of Units 3 and 4. From the risk management perspective, the main aspects that energy industry has to face due to global economic changes within a dynamic business environment are highlighted. In order to mitigate the operational and investment associated risks, Societatea Nationala 'Nuclearelectrica' S.A. successfully developed, implemented and maintained a coherent insurance program both on local and international insurance market. (authors)

Management of the Extreme Events: Countering International Terrorism

Directory of Open Access Journals (Sweden)

Dr. Cristian Barna

2011-12-01

Full Text Available After the terrorism attacks of September 11, 2001, there is recognition by both the public and private sectors that one needs to rethink our strategy for dealing with these low probability but extreme consequence events. September 11, 2001 attacks against the United States raised numerous questions related to counter-terrorism, foreign policy, as well as national security in the United States and abroad. They also raised the fundamental question of who should pay for losses due to terrorism.The question of who should pay for terrorism risk prevention and sustainable coverage within a country is likely to be seen first as a matter of collective responsibility that each country has to consider – a societal choice

Optimal Physical Protection against Nuclear Terrorism

Energy Technology Data Exchange (ETDEWEB)

Lee, Doyoung; Kim, ChangLak [KEPCO International Nuclear Graduate School, Ulsan (Korea, Republic of)

2014-10-15

There is no attempt with nuclear weapons to attack any places for terror or military victory since the atomic bombs dropped in Hiroshima and Nagasaki. People have obviously experienced horrible destructive power of nuclear weapons and continuously remembered a terrible tragedy, lots of organizations and experts express their concerns about the nuclear terrorism and try to interchange opinions for prevention of deadly weapons. The purpose of this paper is to provide the information of nuclear terrorism and what the potential risk of Republic of Korea is and how to do the efficient physical protection. Terror is from the old French terreur, which is derived from Latin verb terror meaning 'great fear'. This is a policy to suppress political opponents through using violence and repression. Many scholars have been proposed, there is no consensus definition of the term 'terrorism.' In 1988, a proposed academic consensus definition: 'Terrorism is an anxiety-inspiring method of repeated violent action, employed by (semi-) clandestine individual, group or state actors, for idiosyncratic, criminal or political reasons, whereby - in contrast to assassination - the direct targets of violence are not the main targets. The immediate human victims of violence are generally chosen randomly (targets of opportunity) or selectively (representative or symbolic targets) from a target population, and serve as message generators. These attacks showed that particular terrorists groups sought to cause heavy casualties and extreme terrorists were spontaneously prepared to make sacrifices for completion of that ultimate goal. Creation of nuclear weapons was like opening Pandora's box. Barack Obama has called nuclear terrorism 'the greatest danger we face'. Nuclear terror is one of the lethal risks. Using nuclear weapons or materials from terrorist groups is a fatal catastrophe to a targeting state though there is no accident similar like that. South

Optimal Physical Protection against Nuclear Terrorism

International Nuclear Information System (INIS)

Lee, Doyoung; Kim, ChangLak

2014-01-01

There is no attempt with nuclear weapons to attack any places for terror or military victory since the atomic bombs dropped in Hiroshima and Nagasaki. People have obviously experienced horrible destructive power of nuclear weapons and continuously remembered a terrible tragedy, lots of organizations and experts express their concerns about the nuclear terrorism and try to interchange opinions for prevention of deadly weapons. The purpose of this paper is to provide the information of nuclear terrorism and what the potential risk of Republic of Korea is and how to do the efficient physical protection. Terror is from the old French terreur, which is derived from Latin verb terror meaning 'great fear'. This is a policy to suppress political opponents through using violence and repression. Many scholars have been proposed, there is no consensus definition of the term 'terrorism.' In 1988, a proposed academic consensus definition: 'Terrorism is an anxiety-inspiring method of repeated violent action, employed by (semi-) clandestine individual, group or state actors, for idiosyncratic, criminal or political reasons, whereby - in contrast to assassination - the direct targets of violence are not the main targets. The immediate human victims of violence are generally chosen randomly (targets of opportunity) or selectively (representative or symbolic targets) from a target population, and serve as message generators. These attacks showed that particular terrorists groups sought to cause heavy casualties and extreme terrorists were spontaneously prepared to make sacrifices for completion of that ultimate goal. Creation of nuclear weapons was like opening Pandora's box. Barack Obama has called nuclear terrorism 'the greatest danger we face'. Nuclear terror is one of the lethal risks. Using nuclear weapons or materials from terrorist groups is a fatal catastrophe to a targeting state though there is no accident similar like that. South

Risks and nuclear insurance

International Nuclear Information System (INIS)

Debaets, M.; Springett, G.D.; Luotonen, K.; Virole, J.

1988-01-01

When analysing the nuclear insurance market, three elements must be taken into account: the nuclear operator's liability is regulated by national laws and/or international Conventions, such operators pay large premiums to insure their nuclear installations against property damage and finally, the nuclear insurance market is made up of pools and is mainly a monopoly. This report describes the different types of insurance coverage, the system governing nuclear third party liability under the Paris Convention and the Brussels Supplementary Convention and several national laws in that field. The last part of the report deals with liability and insurance aspects of international transport of nuclear materials [fr

THE RISK OF GENE TRANSFERRING IN THE INSURANCE PROTECTION OF AGRICULTERE

Directory of Open Access Journals (Sweden)

M. Malik

2016-03-01

Full Text Available The paper justified essence of genetic engineering as the object of insurance services. Defines the concept of risk gene transferring. The character features of this specific risk. The influence and consequences for agricultural producers. The description of the possible creation of the concept of insurance services that cover risk of gene transferring. The study reveals of the use of GMOs in agriculture, due to issues of economic security of a particular region or country as a whole. To determined the impact of risks and control for developing and developed countries that are important aspects of farming. Changes in weather, climate, productivity, price values, public policy, the situation on global markets can cause large fluctuations in agricultural production, and consequently affecting the income of agricultural producers. Risk management includes a range of strategies that reduce the social and financial implications of possible changes affecting the production and income of farmers. There is a need for an in-depth study of the theoretical and practical aspects of the impact of the risk of gene transferring in the context of insurance protection.

Investigating the risk reduction potential of disaster insurance across Europe

NARCIS (Netherlands)

Surminski, Swenja; Hudson, Paul

2017-01-01

The notion that insurance can play a significant role in risk reduction has recently gained increasing attention in the wake of rising losses from natural disasters. While this notion is accepted in theory, we notice that, in practice, little is known about if and how insurance promotes efforts to

A Two-Account Life Insurance Model for Scenario-Based Valuation Including Event Risk

Directory of Open Access Journals (Sweden)

Ninna Reitzel Jensen

2015-06-01

Full Text Available Using a two-account model with event risk, we model life insurance contracts taking into account both guaranteed and non-guaranteed payments in participating life insurance as well as in unit-linked insurance. Here, event risk is used as a generic term for life insurance events, such as death, disability, etc. In our treatment of participating life insurance, we have special focus on the bonus schemes “consolidation” and “additional benefits”, and one goal is to formalize how these work and interact. Another goal is to describe similarities and differences between participating life insurance and unit-linked insurance. By use of a two-account model, we are able to illustrate general concepts without making the model too abstract. To allow for complicated financial markets without dramatically increasing the mathematical complexity, we focus on economic scenarios. We illustrate the use of our model by conducting scenario analysis based on Monte Carlo simulation, but the model applies to scenarios in general and to worst-case and best-estimate scenarios in particular. In addition to easy computations, our model offers a common framework for the valuation of life insurance payments across product types. This enables comparison of participating life insurance products and unit-linked insurance products, thus building a bridge between the two different ways of formalizing life insurance products. Finally, our model distinguishes itself from the existing literature by taking into account the Markov model for the state of the policyholder and, hereby, facilitating event risk.

Climate Risk and Production Shocks: Using Index Insurance to Link Climate Science to Policy for Sustainable Development

Science.gov (United States)

McCarney, G. R.; Osgood, D. E.

2011-12-01

Smallholder farmers in developing countries are often severely impacted by droughts and other climate related events. However, agricultural insurance programs are largely unavailable in lower-income countries because of limitations in traditional loss-based indemnity insurance. As a result, it is often the case that farmers who are the most vulnerable to climate shocks lack access to the insurance tools that could help to reduce their production risk. Index insurance, a recent financial innovation, has the potential to increase access to insurance for smallholder farmers (Barrett et al. 2007). Index insurance allows farmers to insure their production risk based on a weather index (such as total seasonal rainfall) rather than on crop yields. The use of a weather index addresses many of the perverse incentive problems found in traditional crop insurance, and greatly reduces the costs of insuring smallholder farmers. The trade-off in index insurance, however, is limited accuracy in calibrating payouts to actual losses, a phenomenon commonly known as basis risk. While index insurance has promise as a risk-smoothing instrument, many argue it has greater promise as a mechanism for improving access to credit for smallholder farmers in developing countries (e.g. Barnett, Barrett & Skees 2008). In these areas, farmers are often fully exposed to climate shocks, which greatly affect their willingness to borrow. By smoothing the uncertainty in climate shocks, insurance may allow farmers to take credit for productive risks. There has been much discussion as to the optimal strategy for combining index insurance with credit, specifically if the financial institutions or the individual farmers themselves should hold the insurance policy. Many existing insurance implementations insure the farmer directly. However, since a weather index is a proxy for yield loss based on regional data, there is basis risk due to uninsured idiosyncratic differences between farmers. As a response to

Terrorism and financial supervision

Directory of Open Access Journals (Sweden)

Anatoli van der Krans

2005-12-01

Full Text Available This article presents an analysis of how legislators on international, European and national level combat the financing of terrorism. The central question in this article is whether European regulations concerning the prevention of money laundering and the financing of terrorism, are effective, proportional and mutually harmonious. Now that many regulations in this field have been established by intra-national bodies, it is important to examine how these regulations are further elaborated in the respective national systems. This article gives a broad overview of legislative initiatives of the UN, USA, FATF, EU and Council of Europe. The Netherlands for numerous reasons serves as a legal example. It is concluded that measures taken or proposed to avoid or at least reduce the financing of terrorism are quite effective to prevent abuse of the financial system. On the other hand, these measures increase the risk of underground or illegal financing, which is even more difficult to control.

Default risk, bankruptcy procedures and the market value of life insurance liabilities

NARCIS (Netherlands)

Chen, A.; Suchanecki, M.

2007-01-01

The topic of insolvency risk in connection with life insurance companies has recently attracted a great deal of attention. In this paper, the question is investigated of how the values of the equity and of the liability of a life insurance company are affected by the default risk and the choice of

Prior adversities predict posttraumatic stress reactions in adolescents following the Oslo Terror events 2011

Science.gov (United States)

Nordanger, Dag Ø.; Breivik, Kyrre; Haugland, Bente Storm; Lehmann, Stine; Mæhle, Magne; Braarud, Hanne Cecilie; Hysing, Mari

2014-01-01

Background Former studies suggest that prior exposure to adverse experiences such as violence or sexual abuse increases vulnerability to posttraumatic stress reactions in victims of subsequent trauma. However, little is known about how such a history affects responses to terror in the general adolescent population. Objective To explore the role of prior exposure to adverse experiences as risk factors for posttraumatic stress reactions to the Oslo Terror events. Method We used data from 10,220 high school students in a large cross-sectional survey of adolescents in Norway that took place seven months after the Oslo Terror events. Prior exposure assessed was: direct exposure to violence, witnessing of violence, and unwanted sexual acts. We explored how these prior adversities interact with well-established risk factors such as proximity to the events, perceived life threat during the terror events, and gender. Results All types of prior exposure as well as the other risk factors were associated with terror-related posttraumatic stress reactions. The effects of prior adversities were, although small, independent of adolescents’ proximity to the terror events. Among prior adversities, only the effect of direct exposure to violence was moderated by perceived life threat. Exposure to prior adversities increased the risk of posttraumatic stress reactions equally for both genders, but proximity to the terror events and perceived life threat increased the risk more in females. Conclusions Terror events can have a more destabilizing impact on victims of prior adversities, independent of their level of exposure. The findings may be relevant to mental health workers and others providing post-trauma health care. PMID:24872862

Prior adversities predict posttraumatic stress reactions in adolescents following the Oslo Terror events 2011.

Science.gov (United States)

Nordanger, Dag Ø; Breivik, Kyrre; Haugland, Bente Storm; Lehmann, Stine; Mæhle, Magne; Braarud, Hanne Cecilie; Hysing, Mari

2014-01-01

Former studies suggest that prior exposure to adverse experiences such as violence or sexual abuse increases vulnerability to posttraumatic stress reactions in victims of subsequent trauma. However, little is known about how such a history affects responses to terror in the general adolescent population. To explore the role of prior exposure to adverse experiences as risk factors for posttraumatic stress reactions to the Oslo Terror events. We used data from 10,220 high school students in a large cross-sectional survey of adolescents in Norway that took place seven months after the Oslo Terror events. Prior exposure assessed was: direct exposure to violence, witnessing of violence, and unwanted sexual acts. We explored how these prior adversities interact with well-established risk factors such as proximity to the events, perceived life threat during the terror events, and gender. All types of prior exposure as well as the other risk factors were associated with terror-related posttraumatic stress reactions. The effects of prior adversities were, although small, independent of adolescents' proximity to the terror events. Among prior adversities, only the effect of direct exposure to violence was moderated by perceived life threat. Exposure to prior adversities increased the risk of posttraumatic stress reactions equally for both genders, but proximity to the terror events and perceived life threat increased the risk more in females. Terror events can have a more destabilizing impact on victims of prior adversities, independent of their level of exposure. The findings may be relevant to mental health workers and others providing post-trauma health care.

[Terrorism and human behavior].

Science.gov (United States)

Leistedt, S J

2018-04-01

Theories of religion are essential for understanding current trends in terrorist activities. The aim of this work is to clarify religion's role in facilitating terror and outline in parallel with recent theoretical developments on terrorism and human behaviour. Several databases were used such as PubCentral, Scopus, Medline and Science Direct. The search terms "terrorism", "social psychology", "religion", "evolution", and "cognition" were used to identify relevant studies in the databases. This work examines, in a multidimensional way, how terrorists employ these features of religion to achieve their goals. In the same way, it describes how terrorists use rituals to conditionally associate emotions with sanctified symbols that are emotionally evocative and motivationally powerful, fostering group solidarity, trust, and cooperation. Religious beliefs, including promised rewards in the afterlife, further serve to facilitate cooperation by altering the perceived payoffs of costly actions, including suicide bombing. The adolescent pattern of brain development is unique, and young adulthood presents an ideal developmental stage to attract recruits and enlist them in high-risk behaviors. This work offers insights, based on this translational analysis, concerning the links between religion, terrorism and human behavior. Copyright © 2017 L'Encéphale, Paris. Published by Elsevier Masson SAS. All rights reserved.

Nuclear and Radiological Terrorism

International Nuclear Information System (INIS)

Cizmek, A.

2003-01-01

Radiological and nuclear terrorism is widely considered as a major if not ultimate terrorist threat for modern societies. Highly industrialized countries could be extremely sensitive to terrorist aggressions of this kind. Nuclear terrorism is often associated with nuclear proliferation. Strictly speaking, nuclear proliferation deals with the spread of nuclear weapons into states which doesn't posses them. But proliferation can also be understood as the spread of radioactive material or even nuclear explosives into the hands of non-state organizations, such as sub national terrorist or criminal organizations as well as any kind of extreme groups for sabotage, blackmail or any other destabilization or destruction purposes. New driving factors for nuclear terrorism which 'help' terrorists are: the consequence of the break down of the Soviet Union and 'easy' radioactive smuggling and black market. What is 'New terrorism'? In analyzing the treat, one has to start by posing several crucial questions such as 'do such groups or individuals have the skill to complete their aim'? 'Who are these groups and individuals', 'how they can be categorized', 'what is their motivation'? If analysis of the 'new terrorism' is one side of the coin, the other is just as daunting. Who, what, when, where and how would be targeted by 'new terrorism'? Although there are existing different reasons (religious and political/social), mainly the target is civilian population. In many instances the aim is to exert either political or economic pressure on authorities or both. Police, ambulance - first call response teams - local, regional and national authorities have a hard task still ahead of them. The upside is that industrialized nations have acknowledged the need to reassess where we are and what the risk is. The bottom line has to be 'who is likely to want to resort to such methods and what the likelihood of them succeeding would be. (author)

Risk, information and insurance essays in the memory of Karl H. Borch

CERN Document Server

1991-01-01

Orio Giarini The "Geneva Association" (International Association for the Study of Risk and Insurance Economics) was founded in 1973. The main goal was to stimulate and organize objective research in the field of risk, uncertainty, and insurance, in a world in which such issues were clearly becoming of greater and greater relevance for all economic actors. This was a pioneer­ ing effort, especially as economic theory and the teaching of economics were still anchored to the key notion of general equilibrium under an assumption of certainty. Thus, we had to start our work almost from scratch. One of the first initiatives was to bring together in Geneva, in June of 1973, all the academics in Europe already involved in risk and insurance economics. We found eight from five different countries who never had met before. This seminar chaired by Raymond Barre, the first president of The Geneva Association, was the first of an annual series that became known as the seminar of "The European Group of Risk and Insurance ...

Ruin Probabilities in a Dependent Discrete-Time Risk Model With Gamma-Like Tailed Insurance Risks

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Xing-Fang Huang

2017-03-01

Full Text Available This paper considered a dependent discrete-time risk model, in which the insurance risks are represented by a sequence of independent and identically distributed real-valued random variables with a common Gamma-like tailed distribution; the financial risks are denoted by another sequence of independent and identically distributed positive random variables with a finite upper endpoint, but a general dependence structure exists between each pair of the insurance risks and the financial risks. Following the works of Yang and Yuen in 2016, we derive some asymptotic relations for the finite-time and infinite-time ruin probabilities. As a complement, we demonstrate our obtained result through a Crude Monte Carlo (CMC simulation with asymptotics.

A social-cognitive perspective of terrorism risk perception and individual response in Canada.

Science.gov (United States)

Lee, Jennifer E C; Lemyre, Louise

2009-09-01

The volume of research on terrorism has increased since the events of September 11, 2001. However, efforts to develop a contextualized model incorporating cognitive, social-contextual, and affective factors as predictors of individual responses to this threat have been limited. Therefore, the aim of this study was to evaluate a series of hypotheses drawn from such a model that was generated from a series of interviews with members of the Canadian public. Data of a national survey on perceived chemical, biological, radiological, nuclear, and explosives (CBRNE) terrorism threat and preparedness were analyzed. Results demonstrated that worry and behavioral responses to terrorism, such as individual preparedness, information seeking, and avoidance behaviors, were each a function of cognitive and social-contextual factors. As an affective response, worry about terrorism independently contributed to the prediction of behavioral responses above and beyond cognitive and social-contextual factors, and partially mediated the relationships of some of these factors with behavioral responses. Perceived coping efficacy emerged as the cognitive factor associated with the most favorable response to terrorism. Hence, findings highlight the importance of fostering a sense of coping efficacy to the effectiveness of strategies aimed at improving individual preparedness for terrorism.

Should catastrophic risks be included in a regulated competitive health insurance market?

Science.gov (United States)

van de Ven, W P; Schut, F T

1994-11-01

In 1988 the Dutch government launched a proposal for a national health insurance based on regulated competition. The mandatory benefits package should be offered by competing insurers and should cover both non-catastrophic risks (like hospital care, physician services and drugs) and catastrophic risks (like several forms of expensive long-term care). However, there are two arguments to exclude some of the catastrophic risks from the competitive insurance market, at least during the implementation process of the reforms. Firstly, the prospects for a workable system of risk-adjusted payments to the insurers that should take away the incentives for cream skimming are, at least during the next 5 years, more favorable for the non-catastrophic risks than for the catastrophic risks. Secondly, even if a workable system of risk-adjusted payments can be developed, the problem of quality skimping may be relevant for some of the catastrophic risks, but not for non-catastrophic risks. By 'quality skimping' we mean the reduction of the quality of care to a level which is below the minimum level that is acceptable to society. After 5 years of health care reforms in the Netherlands new insights have resulted in a growing support to confine the implementation of the reforms to the non-catastrophic risks. In drawing (and redrawing) the exact boundaries between different regulatory regimes for catastrophic and non-catastrophic risks, the expected benefits of a cost-effective substitution of care have to be weighted against the potential harm caused by cream skimming and quality skimping.

Terrorism-related fear and avoidance behavior in a multiethnic urban population.

Science.gov (United States)

Eisenman, David P; Glik, Deborah; Ong, Michael; Zhou, Qiong; Tseng, Chi-Hong; Long, Anna; Fielding, Jonathan; Asch, Steven

2009-01-01

We sought to determine whether groups traditionally most vulnerable to disasters would be more likely than would be others to perceive population-level risk as high (as measured by the estimated color-coded alert level) would worry more about terrorism, and would avoid activities because of terrorism concerns. We conducted a random digit dial survey of the Los Angeles County population October 2004 through January 2005 in 6 languages. We asked respondents what color alert level the country was under, how often they worry about terrorist attacks, and how often they avoid activities because of terrorism. Multivariate regression modeled correlates of worry and avoidance, including mental illness, disability, demographic factors, and estimated color-coded alert level. Persons who are mentally ill, those who are disabled, African Americans, Latinos, Chinese Americans, Korean Americans, and non-US citizens were more likely to perceive population-level risk as high, as measured by the estimated color-coded alert level. These groups also reported more worry and avoidance behaviors because of concerns about terrorism. Vulnerable populations experience a disproportionate burden of the psychosocial impact of terrorism threats and our national response. Further studies should investigate the specific behaviors affected and further elucidate disparities in the disaster burden associated with terrorism and terrorism policies.

Perceptions of corporate cyber risks and insurance decision-making

NARCIS (Netherlands)

De Smidt, Guido; Botzen, Wouter

This study provides an analysis of individual perceptions of cyber risks amongst professional decision makers. Data are collected using a survey of corporate professionals who are engaged in risk and insurance decision-making in various functional roles mainly in large companies. The study focuses

Prior adversities predict posttraumatic stress reactions in adolescents following the Oslo Terror events 2011

Directory of Open Access Journals (Sweden)

Dag Ø. Nordanger

2014-05-01

Full Text Available Background: Former studies suggest that prior exposure to adverse experiences such as violence or sexual abuse increases vulnerability to posttraumatic stress reactions in victims of subsequent trauma. However, little is known about how such a history affects responses to terror in the general adolescent population. Objective: To explore the role of prior exposure to adverse experiences as risk factors for posttraumatic stress reactions to the Oslo Terror events. Method: We used data from 10,220 high school students in a large cross-sectional survey of adolescents in Norway that took place seven months after the Oslo Terror events. Prior exposure assessed was: direct exposure to violence, witnessing of violence, and unwanted sexual acts. We explored how these prior adversities interact with well-established risk factors such as proximity to the events, perceived life threat during the terror events, and gender. Results: All types of prior exposure as well as the other risk factors were associated with terror-related posttraumatic stress reactions. The effects of prior adversities were, although small, independent of adolescents’ proximity to the terror events. Among prior adversities, only the effect of direct exposure to violence was moderated by perceived life threat. Exposure to prior adversities increased the risk of posttraumatic stress reactions equally for both genders, but proximity to the terror events and perceived life threat increased the risk more in females. Conclusions: Terror events can have a more destabilizing impact on victims of prior adversities, independent of their level of exposure. The findings may be relevant to mental health workers and others providing post-trauma health care.

Using Probabilistic Models to Appraise and Decide on Sovereign Disaster Risk Financing and Insurance

OpenAIRE

Ley-Borrás, Roberto; Fox, Benjamin D.

2015-01-01

This paper presents an overview of the structure of probabilistic catastrophe risk models, discusses their importance for appraising sovereign disaster risk financing and insurance instruments and strategy, and puts forward a model and a process for improving decision making on the linked disaster risk management strategy and sovereign disaster risk financing and insurance strategy. The pa...

Risk pricing practices in finance, insurance and construction

OpenAIRE

Laryea, Samuel

2008-01-01

A review of current risk pricing practices in the financial, insurance and construction sectors is conducted through a comprehensive literature review. The purpose was to inform a study on risk and price in the tendering processes of contractors: specifically, how contractors take account of risk when they are calculating their bids for construction work. The reference to mainstream literature was in view of construction management research as a field of application rather than a fundamental ...

Israeli adolescents with ongoing exposure to terrorism: suicidal ideation, posttraumatic stress disorder, and functional impairment.

Science.gov (United States)

Chemtob, Claude M; Pat-Horenczyk, Ruth; Madan, Anita; Pitman, Seth R; Wang, Yanping; Doppelt, Osnat; Burns, Kelly Dugan; Abramovitz, Robert; Brom, Daniel

2011-12-01

In this study, we examined the relationships among terrorism exposure, functional impairment, suicidal ideation, and probable partial or full posttraumatic stress disorder (PTSD) from exposure to terrorism in adolescents continuously exposed to this threat in Israel. A convenience sample of 2,094 students, aged 12 to 18, was drawn from 10 Israeli secondary schools. In terms of demographic factors, older age was associated with increased risk for suicidal ideation, OR = 1.33, 95% CI [1.09, 1.62], p terrorism was associated with increased risk for each of the measured outcomes including probable partial or full PTSD, functional impairment, and suicidal ideation. When age, gender, level of exposure to terrorism, probable partial or full PTSD, and functional impairment were examined together, only terrorism exposure and functional impairment were associated with suicidal ideation. This study underscores the importance and feasibility of examining exposure to terrorism and functional impairment as risk factors for suicidal ideation. Copyright © 2011 International Society for Traumatic Stress Studies.

Health insurance in South Africa: an empirical analysis of trends in risk-pooling and efficiency following deregulation.

Science.gov (United States)

Söderlund, N; Hansl, B

2000-12-01

This paper reports an empirical investigation into the pattern of private health insurance coverage in South Africa before and after deregulation of the health insurance industry. More specifically, we sought to measure trends in risk-pooling over the period 1985-95, and to assess the impact of risk pooling on the costs of health insurance cover over this period. South African mutual health insurers (Medical Schemes) have existed for over 100 years, and have been regulated under a specific Act since 1967. Up until 1989, health insurers were required by law to community rate their premiums, and were not allowed to exclude high-risk enrolees from cover. In 1989 these regulations were removed, effectively allowing health insurers to risk-rate the cover which they provided, and exclude 'medically uninsurables'. Data were obtained from the office of the health insurance regulator (the Registrar of Medical Schemes) for the period 1985-95, and consisted of the statutory returns from all registered medical schemes for each year during the study period. Multiple regression methods were used to assess the determinants of changes in the risk pools of insurers, and their costs. Both cross-sectional and longitudinal models were estimated. Unadjusted data suggest changes in risk-pooling since the deregulation period after 1985. Health insurers with open enrolment had worse than average risk profiles in the 1980s, but this reversed by the early 1990s, leaving them with significantly better risk profiles by 1995. Worsening risk profiles were associated with decreasing fund size, higher loss-ratios and past premium increases. Most models showed that risk rating of premiums was consistently associated with higher premiums, after adjustment for risk, quality, scale and other environmental differences between insurers. Likely explanations include the additional costs required for marketing and underwriting risk-rated policies, insufficient incentives to use cost-control techniques

Risk Preferences and Demand for Insurance in Peru: A Field Experiment

OpenAIRE

Francisco Galarza; Michael Carter

2011-01-01

"This paper reports the results of behavioral economic experiments conducted in Peru to examine the relationship amongst risk preferences, loan take-up, and insurance purchase decisions. This area-based yield insurance can help reduce people's vulnerability to large scale covariate shocks, and can also lower the loan default probability under extreme negative covariate shocks. In a context of collateralized formal credit markets, we provide suggestive evidence that insurance may help reduce t...

Estimation of insurance premiums for coverage against natural disaster risk: an application of Bayesian Inference

Directory of Open Access Journals (Sweden)

Y. Paudel

2013-03-01

Full Text Available This study applies Bayesian Inference to estimate flood risk for 53 dyke ring areas in the Netherlands, and focuses particularly on the data scarcity and extreme behaviour of catastrophe risk. The probability density curves of flood damage are estimated through Monte Carlo simulations. Based on these results, flood insurance premiums are estimated using two different practical methods that each account in different ways for an insurer's risk aversion and the dispersion rate of loss data. This study is of practical relevance because insurers have been considering the introduction of flood insurance in the Netherlands, which is currently not generally available.

Estimation of insurance premiums for coverage against natural disaster risk: an application of Bayesian Inference

Science.gov (United States)

Paudel, Y.; Botzen, W. J. W.; Aerts, J. C. J. H.

2013-03-01

This study applies Bayesian Inference to estimate flood risk for 53 dyke ring areas in the Netherlands, and focuses particularly on the data scarcity and extreme behaviour of catastrophe risk. The probability density curves of flood damage are estimated through Monte Carlo simulations. Based on these results, flood insurance premiums are estimated using two different practical methods that each account in different ways for an insurer's risk aversion and the dispersion rate of loss data. This study is of practical relevance because insurers have been considering the introduction of flood insurance in the Netherlands, which is currently not generally available.

Outcome of acute myeloid leukemia and high-risk myelodysplastic syndrome according to health insurance status.

Science.gov (United States)

Al-Ameri, Ali; Anand, Ankit; Abdelfatah, Mohamed; Kanaan, Zeyad; Hammonds, Tracy; Haller, Nairmeen; Cherry, Mohamad

2014-12-01

Age, cytogenetic status, and molecular features are the most important prognostic factors in acute myeloid leukemia (AML). This study aimed to analyze the outcomes of patients with AML or high-risk myelodysplastic syndrome (MDS) according to insurance status. A retrospective chart review was performed, covering all patients with AML and high-risk MDS evaluated and treated at Akron General Medical Center between 2002 and 2012. A Cox regression model was analyzed to account for survival over time, adjusted for insurance type, while controlling for patient age at diagnosis and patient risk of mortality. A total of 130 adult patients (age ≥ 18 years) were identified. Insurance information was available for 97 patients enrolled in the study; 3 were excluded because of self-pay status. Cox regression analysis with insurance type as the predictor found that overall survival declines over time and that the rate of decline may be influenced by insurance type (χ(2)(2) = 6.4; P = .044). The likelihood of survival in patients with Medicaid or Medicare without supplemental insurance was .552 (95% CI, .338-.903; P = .018) times the likelihood in patients who had Medicare with supplemental insurance. To explain the difference, variables of age, gender, and risk of mortality were added to the model. Age and risk of mortality were found to be significant predictors of survival. The addition of insurance type to the model did not significantly contribute (χ(2)(3) = 3.83; P = .147). No significant difference in overall survival was observed when patients with AML or high-risk MDS were analyzed according to their health insurance status. The overall survival was low in this study compared with the national average. Early referral to a specialized center or possible clinical trial enrollment may be a good alternative to improve outcome. Copyright © 2014 Elsevier Inc. All rights reserved.

Managing terror: differences between Jews and Arabs in Israel.

Science.gov (United States)

Somer, Eli; Maguen, Shira; Or-Chen, Keren; Litz, Brett T

2009-04-01

Using telephone surveys, we examined exposure to terror, coping, and mental health response in randomly selected Jewish-Israelis (n = 100) and Arab-Israelis (n = 100) living in five Israeli cities affected by terrorism. Jewish-Israelis and Arab-Israelis were randomly selected for study participation and completed telephone surveys in May 2002, following an extended string of terror attacks and hostilities. Although terrorism is designed to target Jewish-Israelis, the rates of exposure were similar in the two groups. Arab-Israelis reported using a wider array of coping strategies, yet also endorsed more frequent PTSD and more severe depression symptoms than Jewish-Israelis. We examined a variety of demographic, ethnic, and religious predictors of different coping styles and found varying results. For example, acceptance coping was best predicted by Arab-Israeli ethnicity, being female, greater religiosity, and lower education. Predictors of mental health response to terror were also examined, with Arab-Israeli ethnicity, being female, adaptation coping and collaborative coping best predicting PTSD and depression symptoms. Arab-Israelis may not have the same access to overarching sources of patriotic support that are readily available to their Jewish compatriots, and civilian and economic inequity experienced by the Arab minority may add to a sense of diminished resources. Our findings justify outreach efforts to overlooked minorities at risk for posttraumatic distress. Women seem to be at particular risk for the development of mental health symptoms following terrorism, which should also be noted for outreach purposes.

Risk and approaches to insurance in the context of the UNFCCC

International Nuclear Information System (INIS)

Havris, A.; Chirica, T.

2004-01-01

A variety of public and private insurance tools may be used to transfer risk resulting from extreme weather events associated with climate change. This paper will consider how combinations of risk transfer and collective loss-sharing tools are used both in and through existing international civil liability and compensation regimes, to address transboundary environmental harm from ultra-hazardous, hazardous and dangerous activities. The most prominent of these regimes have developed in connection with risks from nuclear damage, oil spills, transportation of dangerous and hazardous goods, and the pollution of watercourses through industrial accidents. Then, the paper will introduce how insurance tools are used within these existing regimes to transfer and share risk and losses and present the tiered compensation systems currently used in these regimes to redistribute risk. This is done to allow consideration of how similar concepts might be used to address transboundary damage resulting from climate change. Finally, the nuclear third party liability regime in Romania shall be described and the way Societatea Nationala 'Nuclearelectrica' S.A. - the key player and promoter of Romanian nuclear industry development - developed and placed a nuclear insurance program. (author)

Abundance in Capital: Global Risk Sharing and Insurance in a Changing Financial Environment

Science.gov (United States)

Michel, Gero; Schaper, Christopher

2014-05-01

Insurance has played a viable role in the hedging of homeowners and commercial risks around the world. Countries that have significant penetration in insurance have in addition performed better after large regional or over-regional catastrophic losses. Insurance has hence increased the resilience of western societies. This is opposed to emerging or developing markets with low insurance penetration which have suffered significant drawbacks in their development after large catastrophic events. Examples include the recent Typhoon(s) in the Philippines and the 2010 Haiti earthquake. This presentation will provide insights into the opportunities, views and risk management features a global reinsurance company must assume in order to hedge and mitigate risk across the world. During the past year, an unprecedented amount of new capital has been entering the insurance market, looking for profitable investments outside the much wider capital market. Catastrophe insurance is seen as a valuable alternative to investing in assets that that have shown low returns and high correlation in the recent financial meltdown. The new capital is mostly deployed - or competing with already deployed capital - in the US where insurance penetration is already high. This is opposed to more than half of the world including all developing and most emerging countries which have low insurance penetration and often lack infrastructure hindering new capital to be deployed effectively. What is needed to overcome this obvious deficiency in capital supply and demand? One reason why it is difficult to deploy capital in developing countries is the lack of available exposure information and catastrophe models. This presentation sheds light on the potential science needs of our market and gives an overview of what is being done at Montpelier, a global reinsurance company, to understand catastrophe risk around the globe.

75 FR 75904 - Global Terrorism Sanctions Regulations; Terrorism Sanctions Regulations; Foreign Terrorist...

Science.gov (United States)

2010-12-07

... Terrorism Sanctions Regulations; Terrorism Sanctions Regulations; Foreign Terrorist Organizations Sanctions... Foreign Assets Control (``OFAC'') of the U.S. Department of the Treasury is amending the Global Terrorism Sanctions Regulations (``GTSR'') and the Terrorism Sanctions Regulations (``TSR'') to expand the scope of...

PORTFOLIO INSURANCE INVESTMENT STRATEGIES: A RISK-MANAGEMENT TOOL

Directory of Open Access Journals (Sweden)

Elma Agic-Sabeta

2017-06-01

Full Text Available Unsystemic risks in financial markets may be reduced through diversification. Systemic risks relate to the overall economy, cannot be influenced by a single company, and require special attention. Empirical research on return distributions in the long-term shows that investing under the assumption of normal distribution of returns may be dangerous. The main objectives of this article are to describe portfolio insurance strategies and investigate their advantages and disadvantages. Furthermore, their use in financial markets in both developed and emerging markets is explored, with special consideration placed on southeast European markets. Theoretical models are reviewed, including recent research articles in the field. The results are analyzed, summarized, and presented in the form of tables and graphs. The main finding of the article is identification of strategies that could be used in southeast Europe. It concludes that implementation of portfolio insurance strategies by asset managers may reduce financial risks in southeast European markets if implementation is done professionally and, simultaneously, it is monitored during the entire investment horizon.

Serbian insurance market: Select issues

Directory of Open Access Journals (Sweden)

Obadović Mirjana M.

2010-01-01

Full Text Available Every day insurance companies face a number of risks arising from the insurance industry itself, as well as risks arising from insurance company operations. In this constant fight against risks insurance companies use different models and methods that help them better understand, have a more comprehensive view of, and develop greater tolerance towards risks, in order to reduce their exposure to these risks. The model presented in this paper has been developed for implementation in insurance risk management directly related to insurance company risk, i.e. it is a model that can reliably determine the manner and intensity with which deviations in the initial insurance risk assessment affect insurance company operations, in the form of changes in operational risks and consequently in insurance companies’ business strategies. Additionally we present the implementation of the model in the Serbian market for the period 2005-2010.

The role of insurance and risk management in new power plant projects

International Nuclear Information System (INIS)

Ryan, R.

1988-01-01

Insurance, and other risk management techniques, can be used to facilitate the financing and construction of power plant projects. This paper describes certain techniques, then it concentrates on insurance based solutions. The objective of this paper is to point out how the insurance industry can help small power producers. First, the standard insurance coverages will be reviewed. Then coverages that have been specifically designed for the alternative energy, cogeneration and small power producing industries will be explained. Some real life examples will be discussed to show how the coverages really work

The assessment of solvency and determination of limits for risk acceptance in insurance companies

Directory of Open Access Journals (Sweden)

Drljača Dejan

2017-01-01

Full Text Available The subject of this paper is the presentation of key requirements for Solvency II project, the methodology for testing of capital adequacy and methods for identification, definition and establishment of risk limits, as a limit for acceptance, bearing and control of exposure to certain risks in insurance companies. The aim of the paper is to show that the capital adequacy is the key factor for insurers' safety, i.e. guarantee of capability of an insurer to settle any future liabilities and leverage for strengthening of insurer's market position. Business operations of insurance companies are exposed to a significant number of risks that differ by their nature, character and influence, due to which adequacy of calculated technical reserves does not provide a satisfactory level of safety in case of more significant impairments of assets and funds of insurers, as well as in case of significant deviations between amounts of settled claims and actuarially expected amounts of liabilities based on claims. Stress testing of capital adequacy will show that losses due to impairment of risky securities, difficult collection of low liquid, i.e. securities that are difficult to market, inability to collect receivables from reinsurers, as well as losses due to inadequately calculated reserved claims, must be covered by a solvent capital. The paper is structured so as to provide a review of rules, elements and principles that are the foundation of solvency requirements in insurance companies, methodologies of calculation of guarantee reserve, technical basis for stress testing which assesses capital adequacy of insurers, as well as methods for establishment of limits of exposure to certain risks.

Should catastrophic risks be included in a regulated competitive health insurance market?

NARCIS (Netherlands)

W.P.M.M. van de Ven (Wynand); F.T. Schut (Erik)

1994-01-01

textabstractIn 1988 the Dutch government launched a proposal for a national health insurance based on regulated competition. The mandatory benefits package should be offered by competing insurers and should cover both non-catastrophic risks (like hospital care, physician services and drugs) and

The Association of Exposure, Risk, and Resiliency Factors With PTSD Among Jews and Arabs Exposed to Repeated Acts of Terrorism in Israel

Science.gov (United States)

Hobfoll, Stevan E.; Canetti-Nisim, Daphna; Johnson, Robert J.; Palmieri, Patrick A.; Varley, Joseph D.; Galea, Sandro

2009-01-01

Israel has faced ongoing terrorism since the beginning of the Al Aqsa Intifada in September 2000. The authors examined risk and resiliency factors associated with posttraumatic stress disorder (PTSD) among 1,117 Jews and 394 Arab adult citizens of Israel during August and September 2004 through telephone interviews. Probable PTSD was found among 6.6% of Jews and 18.0% of Arabs. Predictors of probable PTSD in a multivariate model for Jews were refusal to report income, being traditionally religious, economic and psychosocial resource loss, greater traumatic growth, and lower social support. For Arabs, predictors were low education and economic resource loss among those exposed to terrorism. Findings for only those directly exposed to terrorism were similar to those for the overall national sample. PMID:18302179

Insurance crisis

International Nuclear Information System (INIS)

Williams, P.L.

1996-01-01

The article discusses the effects of financing and technology advances on the availability of insurance for independent power producers operating gas turbines. Combined cycle units which require new materials and processes make it difficult to assess risk. Insurers are denying coverage, or raising prices and deductibles. Many lenders, however, are requiring insurance prior to financing. Some solutions proposed include information sharing by industry participants and insurers and increased risk acceptance by plant owners/operators

Patterns of Force: System Strength, Terrorism and Civil War

DEFF Research Database (Denmark)

Freytag, Andreas; Meierrieks, Daniel; Münch, Angela

2010-01-01

We jointly analyze the genesis of terrorism and civil war, providing a simple conceptual framework to explain why violent opposition groups choose distinct forms of violence (i.e., terrorism and open rebellion). We argue that the distinct modes of violent opposition are chosen by opposition groups...... in response to the strengths and weaknesses of the system they challenge. An empirical test of this hypothesis for 104 countries for 1992 to 2004 indeed shows that the socio-economic strength of a system positively correlates with the likelihood of terrorism, but negatively with the incidence of civil war....... Institutional quality and political participation of opponents reduce the risk of civil war, but do not affect the likelihood of terrorism. We also show that system stability reduces the likelihood of all forms of violent opposition....

An Improved Distortion Operator for Insurance Risks

Institute of Scientific and Technical Information of China (English)

GAO Jian-wei; QIU Wan-hua

2002-01-01

This paper reviews the distortion function approach developed in the actuarial literature for insurance risks. The main aim of this paper is to derive an extensive distortion operator, and to propose a new premium principle based on this extensive distortion operator. Furthermore, the non-robustness of general distortion operator is also discussed. Examples are provided using Bernoulli, Pareto, Lognormal and Gamma distribution assumptions.

46 CFR 308.403 - Insured amounts.

Science.gov (United States)

2010-10-01

... total amount of war risk insurance obtainable from companies authorized to do an insurance business in a... MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION EMERGENCY OPERATIONS WAR RISK INSURANCE War Risk Builder's Risk Insurance § 308.403 Insured amounts. (a) Prelaunching period. The amount insured during...

Insurance risk of nuclear power plant concentrations

International Nuclear Information System (INIS)

Feldmann, J.

1976-01-01

The limited number of sites available in the Federal Republic of Germany for the erection of nuclear power plants has resulted in the construction of multiple nuclear generating units on a few sites, such as Biblis, Gundremmingen and Neckarwestheim. At a value invested of approximately DM 1,200/kW this corresponds to a property concentration on one site worth DM 2 - 3 billion and more. This raises the question whether a concentration of value of this magnitude does not already exceed the limits of bearable economic risks. The property risk of a nuclear power plant, as that of any other industrial plant, is a function of the property that can be destroyed in a maximum probable loss. Insurance companies subdivide plants into so-called complex areas in which fire damage or nuclear damage could spread. While in some foreign countries twin nuclear power plants are built, where the technical systems of both units are installed in one building without any physical separation, dual unit plants are built in the Federal Republic in which the complexes with a high concentration of valuable property are physically separate building units. As a result of this separation, property insurance companies have no grounds for assessing the risk and hence, the premium different from those of single unit plants. (orig.) [de

Terrorism as Communication.

Science.gov (United States)

Decker, Warren; Rainey, Daniel

Terrorism has become not merely a political act, but a carefully designed and rhetorically sophisticated attempt at communication. What role should the communication scholar play in the investigation of terrorism? Specifically, there are six areas within which the communication scholar may actively contribute to an understanding of terrorism as…

Creation and implementation of a certification system for insurability and fire risk classification for forest plantations

Science.gov (United States)

Veronica Loewe M.; Victor Vargas; Juan Miguel Ruiz; Andrea Alvarez C.; Felipe Lobo Q.

2015-01-01

Currently, the Chilean insurance market sells forest fire insurance policies and agricultural weather risk policies. However, access to forest fire insurance is difficult for small and medium enterprises (SMEs), with a significant proportion (close to 50%) of forest plantations being without coverage. Indeed, the insurance market that sells forest fire insurance...

Nuclear Liability and Insurance Cover for Risk of Nuclear Power Plants - Situation for Nuclear Installations in Germany

International Nuclear Information System (INIS)

Boediker, T.

1998-01-01

A dispute about nuclear liability and insurance cover for risks of nuclear power plants from an insurer's point of view has to determine and to judge the essential risk relevant factors. These are beside plant and site specific factors considerations of insurance restrictions in the extent of cover compared with the legal scope of liability for (re-)insurability's sake. Among such consideration are: financial limitation and obligation for its reinstatement, exclusions for gradual emissions of approved activities, armed conflicts, hostilities, civil war, insurrections or grave natural disaster and restrictions in the limitation and preclusion periods. In comparison with conventional liability risks there are some specialties to be considered some of which prove to be a risk relief other as a risk burden for insurance: Salvage expenses or interests and court costs to be paid by unsuccessful party in a lost litigation do not fall under legal liability and hence are excluded from the financial security cover so that are compensation is subject to agreed separate limits. A serious burden for the insurers can result out of the loss regulation costs in case of a severe nuclear accident. These expenses, which can exceed hundred million DM by far, are to be carried by the insurers in the frame of their obligation to investigate raised claims. Therefore the insurers should aim a fixed limitation in order to restrict their limit. (author)

Tools used by the insurance industry to assess risk from hydroclimatic extremes

Science.gov (United States)

Higgs, Stephanie; McMullan, Caroline

2016-04-01

Probabilistic catastrophe models are widely used within the insurance industry to assess and price the risk of natural hazards to individual residences through to portfolios of millions of properties. Over the relatively short period that catastrophe models have been available (almost 30 years), the insurance industry has built up a financial resilience to key natural hazards in certain areas (e.g. US tropical cyclone, European extra-tropical cyclone and flood). However, due the rapidly expanding global population and increase in wealth, together with uncertainties in the behaviour of meteorological phenomena introduced by climate change, the domain in which natural hazards impact society is growing. As a result, the insurance industry faces new challenges in assessing the risk and uncertainty from natural hazards. As a catastrophe modelling company, AIR Worldwide has a toolbox of options available to help the insurance industry assess extreme climatic events and their associated uncertainty. Here we discuss several of these tools: from helping analysts understand how uncertainty is inherently built in to probabilistic catastrophe models, to understanding alternative stochastic catalogs for tropical cyclone based on climate conditioning. Through the use of stochastic extreme disaster events such as those provided through AIR's catalogs or through the Lloyds of London marketplace (RDS's) to provide useful benchmarks for the loss probability exceedence and tail-at-risk metrics outputted from catastrophe models; to the visualisation of 1000+ year event footprints and hazard intensity maps. Ultimately the increased transparency of catastrophe models and flexibility of a software platform that allows for customisation of modelled and non-modelled risks will drive a greater understanding of extreme hydroclimatic events within the insurance industry.

Understanding Contemporary Terrorism.

Science.gov (United States)

Mitchell, Thomas H.

1989-01-01

Discusses the issue of terrorism as it exists today and examines progress that has been made toward understanding its dimensions. Suggests how this subject can be explored in the classroom. Dispels misconceptions about terrorism by defining the term, and examines some causes of terrorism and strategies employed by terrorists. (KO)

Are Economic Development and Education Improvement Associated with Participation in Transnational Terrorism?

Science.gov (United States)

Elbakidze, L; Jin, Y H

2015-08-01

Using transnational terrorism data from 1980 to 2000, this study empirically examines the relationships between frequency of participation in transnational terrorism acts and economic development and education improvement. We find an inverse U-shaped association between the frequency of various nationals acting as perpetrators in transnational terrorism acts and per capita income in their respective home countries. As per capita incomes increase from relatively low levels, frequencies of participation in transnational terrorism increase. However, at sufficiently higher levels of per capita income, further increase in per capita income is negatively associated with the rate of participation in transnational terrorism. Education improvement from elementary to secondary is positively correlated with frequency of participation in transnational terrorism events, whereas further improvement from secondary to tertiary level is negatively correlated with participation in transnational terrorism. We also find that citizens of countries with greater openness to international trade, lower degree of income inequality, greater economic freedom, larger proportion of population with tertiary education, and less religious prevalence participate in transnational terrorism events less frequently. © 2015 Society for Risk Analysis.

Technical considerations in nuclear terrorism

International Nuclear Information System (INIS)

Velardo, G.

2007-01-01

Nuclear terrorism is an evil application of nuclear energy, in the same way that chemical and biological terrorism could be considered as the evil side of chemistry and biology. This paper presents two effects of nuclear terrorism. First, dirty bombs or radioactive bombs or radiological dispersion devices (RDDs), and second, crude atom bombs or improvised nuclear devices (INDs). The paper analyses as well the probabilities of an attack, its biological effects and nuclear risk. Experiments carried out so far indicate that the lethal effects produced by RDDs are likely the same that the effects produced by the chemical explosive used in the bomb. These type of bombs are rather bounded to generate panic and have implicit a high cost of decontamination. It will be described the measures to be adopted. INDs will be also considered. Uranium INDs by gun-method are more feasible to be made. They can be disassembled and their components transported to the target place. Plutonium INDs by the implosion-method are complex and required high precision technology. Their disassembly is very difficult

Counter-Terrorism, Technology and Transparency: Reconsidering State Accountability

Directory of Open Access Journals (Sweden)

Quirine Eijkman

2012-02-01

Full Text Available In this Discussion Paper, Dr. Quirine Eijkman discusses the use of surveillance, storage of personal information, biometrics, satellite technology and other forms of ICT technology used in the fight against terrorism. Although technology is a powerful tool to fight terrorism, it is also a means for increasing social control by the state. Henceforth, there is a risk that panoptic surveillance – where the few view the many – could develop. Therefore accountability in relation to use of technological counter-terrorism measures such as smart surveillance cameras, biometric devices or the tracking of personal data is discussed in this article. The extra powers that both public authorities and private companies gain through new (surveillance technologies should be counterbalanced. In this context the role of the state, because of its monopoly to use force and its duty to protect the rule of law, is crucial. By reconsidering how to enforce accountability by the state, the effects of technological counter-terrorism measures could be checked and balanced.

Homegrown terrorism; the known unknown

OpenAIRE

Hinkkainen, Kaisa

2012-01-01

Homegrown terrorism has attracted significant attention following the 2004 Madrid and 2005 London bombings. Homegrown terrorism is usually thought to be a new phenomenon, with few observed events, and inherently distinct from transnational terrorism or the old domestic terrorism in Europe. However, little research has so far examined the alleged distinctiveness of homegrown terrorism empirically. I argue that homegrown terrorism shares many similarities with domestic and international terrori...

Investment Risks and Insurance in the Gold Market

Directory of Open Access Journals (Sweden)

Nikolay Megits

2014-03-01

Full Text Available Normal 0 false false false EN-US X-NONE X-NONE In this article we investigated the causes and features of investment risks in the gold market, studied the components of investment risks in this market, and analyzed the main methods of insuring those investment risks. In addition, we presented the methods and financial investment instruments used in gold operations and provided the conceptual analyses of investment risk in the gold market. Normal 0 false false false EN-US X-NONE X-NONE Normal 0 false false false EN-US X-NONE X-NONE Remotely Piloted Innovation: Terrorism, Drones and Supportive Technology

Science.gov (United States)

2016-10-01

Michael Jenkins , most of “today’s terrorists want a lot of people watching and a lot of people dead.”1 To accomplish these objectives, and to outbid...Michael Jenkins , The New Age of Terrorism (Santa Monica, CA: RAND Corporation, 2006), p. 119. 2 For example, see “Iraq Sees Worst Bombing Since...see Henry H. Willis et al., Estimating Terrorism Risk (Santa Monica, CA: RAND Corporation, 2005); and John A. Major, “Advanced Techniques for Modeling

Terrorism Research Centres: 100 Institutes, Programs and Organisations in the Field of Terrorism, Counter-Terrorism, Radicalisation and Asymmetric Warfare Studies

Directory of Open Access Journals (Sweden)

Benjamin Freedman

2010-12-01

Full Text Available Who is doing research – academic and otherwise – on terrorism? The field of terrorism research is broad and ever-expanding. Governments sponsor intelligence-driven analytical research agencies. Commercial intelligence firms like Jane’s, sell their research to corporate and governmental clients. There are think tanks likeRAND, which work closely with government agencies. An increasing number of universities house terrorism research centres, the oldest one being the Centre for the Study of Terrorism and Political Violence at the University of St. Andrews. Then there are virtual networks, such as the Terrorism Research Initiative (TRI, that try to create synergies between a wide array of researchers and topics.

Value-oriented risk management of insurance companies

CERN Document Server

Kriele, Marcus

2014-01-01

Value- and risk-oriented management is a holistic method of managing businesses. In this book both actuarial methods and methods pertaining to classical internal control and classical risk management are used. Therefore the approach taken is necessarily interdisciplinary. Indeed, there is a new dynamically developing field for actuaries as a result of the emphasis now on the measurement of risk. This book provides the required basic knowledge for this subject from an actuarial perspective. It enables the reader to implement in practice a risk management system that is based on quantitative methods. With this book, the reader will additionally be able to critically appraise the applicability and the limits of the methods used in modern risk management. Value- Oriented Risk Management of Insurance Companies focuses on risk capital, capital allocation, performance measurement and value-oriented management. It also makes a connection to regulatory developments (for example, Solvency II). The reader should have...

How can the regulator show evidence of (no) risk selection in health insurance markets? Conceptual framework and empirical evidence.

Science.gov (United States)

van de Ven, Wynand P M M; van Vliet, René C J A; van Kleef, Richard C

2017-03-01

If consumers have a choice of health plan, risk selection is often a serious problem (e.g., as in Germany, Israel, the Netherlands, the United States of America, and Switzerland). Risk selection may threaten the quality of care for chronically ill people, and may reduce the affordability and efficiency of healthcare. Therefore, an important question is: how can the regulator show evidence of (no) risk selection? Although this seems easy, showing such evidence is not straightforward. The novelty of this paper is two-fold. First, we provide a conceptual framework for showing evidence of risk selection in competitive health insurance markets. It is not easy to disentangle risk selection and the insurers' efficiency. We suggest two methods to measure risk selection that are not biased by the insurers' efficiency. Because these measures underestimate the true risk selection, we also provide a list of signals of selection that can be measured and that, in particular in combination, can show evidence of risk selection. It is impossible to show the absence of risk selection. Second, we empirically measure risk selection among the switchers, taking into account the insurers' efficiency. Based on 2-year administrative data on healthcare expenses and risk characteristics of nearly all individuals with basic health insurance in the Netherlands (N > 16 million) we find significant risk selection for most health insurers. This is the first publication of hard empirical evidence of risk selection in the Dutch health insurance market.

Differentiating the threat of radiological/nuclear terrorism: Motivations and constraints

Energy Technology Data Exchange (ETDEWEB)

Post, J M [Elliott School of International Affairs, George Washington University, Washington, DC (United States)

2001-07-01

Full text: Reviewing the spectrum of terrorist groups in terms of motivation, incentives and constraints, for nearly all groups, nuclear terrorism could be highly counter-productive. The constraints are particularly severe for large-scale mass casualty terrorism for groups that are concerned with their constituents--social revolutionary and nationalist separatist terrorists--although discriminate low level attacks are possible. Right-wing extremists, including individuals who are members of the right-wing virtual community of hatred, represent a distinct danger for low level discriminate attacks against their targets. Religious fundamentalist terrorist groups represent a particular threat, because they are not trying to influence the West but to expel Western modernizing influences. Moreover, they believe that their acts of violence are given sacred significance. The severe constraints against catastrophic terrorism for most groups argues for continuing to protect against the greatest danger - conventional terrorism - and to devote significantly increased resources to monitoring more closely the groups at greatest risk for nuclear terrorism. (author)

Cyber Warfare/Cyber Terrorism

National Research Council Canada - National Science Library

O'Hara, Timothy

2004-01-01

.... Section 1 concludes with a review of offensive and defensive cyber warfare concepts. Section 2 presents a general overview of cyber terrorism, including definitions of cyber terrorism and cyber terrorism support...

Using Cyber-Insurance as a Risk Management Strategy: Knowledge Gaps and Recommendations for Further Research

OpenAIRE

Tøndel, Inger Anne; Meland, Per Håkon; Omerovic, Aida; Gjære, Erlend Andreas; Solhaug, Bjørnar

2015-01-01

- Risk transfer can be an economically favorable way of handling security and privacy issues, but choosing this option indiscriminately and without proper knowledge is a risk in itself. This report provides an overview of knowledge gaps related to cyber-insurance as a risk management strategy. These are grouped into three high-level topics; cyber-insurance products, understanding and measuring risk and estimation of consequences. The topics are further divided into 11 knowledge areas with ...

Deposit Insurance Coverage, Credibility of Non-insurance, and Banking Crises

DEFF Research Database (Denmark)

Angkinand, Apanard; Wihlborg, Clas

2005-01-01

level require analyses of institutional factors affecting the credibility of non-insurance. In particular, the implementation of effective distress resolution procedures for banks would allow governments to reduce explicit deposit insurance coverage and, thereby, to strengthen market discipline......The ambiguity in existing empirical work with respect to effects of deposit insurance schemes on banks' risk-taking can be resolved if it is recognized that absence of deposit insurance is rarely credible and that the credibility of non-insurance can be enhanced by explicit deposit insurance...... schemes. We show that under reasonable conditions for effects on risk-taking of creditor protection in banking, and for effects on credibility of non-insurance of explicit coverage of deposit insurance schemes, there exists a partial level of coverage that maximizes market discipline and minimizes moral...

Containing Terrorism: A Dynamic Model

Directory of Open Access Journals (Sweden)

Giti Zahedzadeh

2017-06-01

Full Text Available The strategic interplay between counterterror measures and terror activity is complex. Herein, we propose a dynamic model to depict this interaction. The model generates stylized prognoses: (i under conditions of inefficient counterterror measures, terror groups enjoy longer period of activity but only if recruitment into terror groups remains low; high recruitment shortens the period of terror activity (ii highly efficient counterterror measures effectively contain terror activity, but only if recruitment remains low. Thus, highly efficient counterterror measures can effectively contain terrorism if recruitment remains restrained. We conclude that the trajectory of the dynamics between counterterror measures and terror activity is heavily altered by recruitment.

How terrorism news reports increase prejudice against outgroups: A terror management account

NARCIS (Netherlands)

Das, E.; Bushman, B.J.; Bezemer, M.D.; Kerkhof, P.; Vermeulen, I.E.

2009-01-01

Three studies tested predictions derived from terror management theory (TMT) about the effects of terrorism news on prejudice. Exposure to terrorism news should confront receivers with thoughts about their own death, which, in turn, should increase prejudice toward outgroup members. Non-Muslim

Liability and insurance of nuclear accident risk the swiss regulation in perspective

International Nuclear Information System (INIS)

Umbricht, R.; Zweifel, P.

1998-01-01

In this paper we argue that compulsory insurance of nuclear liability should be extended. Most countries have explicit limitations of operators' liability, which also lie at the heart of international conventions. Moreover, there are implicit limitations imposed by operators' inability to pay where unlimited and strict liability applies. These limitations result in static and dynamic inefficiencies because they allow nuclear plant operators to eschew the risk costs of a severe nuclear accident. Extension of compulsory insurance, however, will exacerbate problems of market failure in insurance: National insurance pools have monopolized the business and are expected to exercise market power. Furthermore, their capacity may fall short of required coverage. Bringing in capital market investors can alleviate these problems. Nuclear liability insurance data from Switzerland provides statistical evidence in support of our main points. (authors)

Investigating the effect of corporate governance on risk of private banks and insurance firms

Directory of Open Access Journals (Sweden)

Mehdi Taghavi

2014-01-01

Full Text Available This paper presents an empirical investigation to study the effects of corporate governance on risk taking of private insurance firms and banks in Iran. The proposed study of this paper considers the financial information of 13 banks and 19 private insurance firms over the period 2006-2011 in Iran. The study investigates the effects of five variables including size, CEO duality task, composition of the board of directors, ownership concentration and having an internal auditing system on risk taking of private banks and insurance firms in Iran. Using some panel data and regression analysis, the study confirms the positive effect of the ownership concentration as well as negative impact of non-bound board members on risk taking.

Risk preference or financial literacy? Behavioural experiment on index insurance demand

NARCIS (Netherlands)

Awel, Y.; Azomahou, T.T.

2015-01-01

We use unique cross-sectional household data from Ethiopia to investigate the effect of risk preference, financial literacy and other socio-economic characteristics on demand for index insurance. We measure risk preference based on survey experiments using lottery choice game with real monetary

Defining Terrorism.

Science.gov (United States)

Hoffman, Bruce

1986-01-01

Notes the lack of a concise meaning for the word terrorism. Develops a working definition which states that terrorism is the deliberate creation and exploitation of fear through violence or the threat of violence in the attainment of political objectives. (JDH)

Terrorism as a process: a critical review of Moghaddam's "Staircase to Terrorism".

Science.gov (United States)

Lygre, Ragnhild B; Eid, Jarle; Larsson, Gerry; Ranstorp, Magnus

2011-12-01

This study reviews empirical evidence for Moghaddam's model "Staircase to Terrorism," which portrays terrorism as a process of six consecutive steps culminating in terrorism. An extensive literature search, where 2,564 publications on terrorism were screened, resulted in 38 articles which were subject to further analysis. The results showed that while most of the theories and processes linked to Moghaddam's model are supported by empirical evidence, the proposed transitions between the different steps are not. These results may question the validity of a linear stepwise model and may suggest that a combination of mechanisms/factors could combine in different ways to produce terrorism. © 2011 The Authors. Scandinavian Journal of Psychology © 2011 The Scandinavian Psychological Associations.

Enterprise risk management and firm value within China’s insurance industry

Directory of Open Access Journals (Sweden)

Qiuying Li

2014-02-01

Research purpose: The purpose of the study is to empirically examine the relationship between ERM and firm value. The study is undertaken within the context of the Chinese insurance industry. Motivation for the study: Recent attempts to link ERM with firm value have been undertaken primarily in the USA and Europe and have produced ambiguous and inconclusive findings. Research design, approach and method: Data was obtained from the China Insurance Regulatory Commission, a government body responsible for regulating insurance products and services in China. The data sample consisted of 135 insurance companies operating in China (in 2010. Regression modelling is employed to analyse the data. Main findings: The results show the relationship between ERM and firm value at first appears statistically significant within a Pearson correlation matrix but then falls below statistical significance on closer scrutiny through regression analysis. Accordingly, it is recommended that insurers in China should not look to aggressive investment in ERM as a strategy for producing quick gains in firm value. Practical/managerial implications: Risk managers should plan ERM development from a risk management maturity perspective, which equates the highest level of ERM development with ERM’s capacity to improve firm resilience to the unknown and serve as a mechanism for strategic decision-making. Contribution/value-add: The study employed return on equity as a proxy for firm value, utilising ordinary least squares regression modelling to test propositions of the relationships between variables.

Supplementary insurance as a switching cost for basic health insurance: Empirical results from the Netherlands.

Science.gov (United States)

Willemse-Duijmelinck, Daniëlle M I D; van de Ven, Wynand P M M; Mosca, Ilaria

2017-10-01

Nearly everyone with a supplementary insurance (SI) in the Netherlands takes out the voluntary SI and the mandatory basic insurance (BI) from the same health insurer. Previous studies show that many high-risks perceive SI as a switching cost for BI. Because consumers' current insurer provides them with a guaranteed renewability, SI is a switching cost if insurers apply selective underwriting to new applicants. Several changes in the Dutch health insurance market increased insurers' incentives to counteract adverse selection for SI. Tools to do so are not only selective underwriting, but also risk rating and product differentiation. If all insurers use the latter tools without selective underwriting, SI is not a switching cost for BI. We investigated to what extent insurers used these tools in the periods 2006-2009 and 2014-2015. Only a few insurers applied selective underwriting: in 2015, 86% of insurers used open enrolment for all their SI products, and the other 14% did use open enrolment for their most common SI products. As measured by our indicators, the proportion of insurers applying risk rating or product differentiation did not increase in the periods considered. Due to the fear of reputation loss insurers may have used 'less visible' tools to counteract adverse selection that are indirect forms of risk rating and product differentiation and do not result in switching costs. So, although many high-risks perceive SI as a switching cost, most insurers apply open enrolment for SI. By providing information to high-risks about their switching opportunities, the government could increase consumer choice and thereby insurers' incentives to invest in high-quality care for high-risks. Copyright © 2017 Elsevier B.V. All rights reserved.

Nuclear Terrorism and its Confrontation

International Nuclear Information System (INIS)

Al Barody, M.M.

2006-01-01

The whole world first knew nuclear terrorism during the second world war through the use of excessive violence that to terror exercised by one country against another, as was carried out by USA when it exploded two nuclear bombs over Hiroshima and Nagasaki t the end of the war. there are numerous types of nuclear terrorism that can be performed by individuals or organized groups for achieving political or social objectives. the definition of the term t errorism i s correlated with u sing means capable of creating a case of public dnger . that property exists in all types of direct or indirect nuclear terrorism . the present study is divided into two chapters. Chapter one deals with nuclear terrorism and consists of two sections , the first deals with the identification of the nature of nuclear terrorism an the second deals with organize nuclear terrorism on the international level. Chapter two deals with the confrontation of nuclear terrorism in two sections. the first deals with the role of the state in combating against nuclear terrorism nd the second deals with combating against nuclear terrorism on the international level. while internally it is confronted through promulgation of legislations that deal with the protection against nuclear terrorism as well as the national legal instruments for protection of nuclear materials and installation and combating illicit trafficking of nuclear materials, confrontation of nuclear terrorism on the international level is carried out through the promulgation of international convention such as that on suppression of actions of nuclear terrorism which shall be opened for signature on sept.14 -2005 according to the recommendation the general assembly of the united nations in its 59 t h session

Latent class analysis of accident risks in usage-based insurance: Evidence from Beijing.

Science.gov (United States)

Jin, Wen; Deng, Yinglu; Jiang, Hai; Xie, Qianyan; Shen, Wei; Han, Weijian

2018-06-01

Car insurance is quickly becoming a big data industry, with usage-based insurance (UBI) poised to potentially change the business of insurance. Telematics data, which are transmitted from wireless devices in car, are widely used in UBI to obtain individual-level travel and driving characteristics. While most existing studies have introduced telematics data into car insurance pricing, the telematics-related characteristics are directly obtained from the raw data. In this study, we propose to quantify drivers' familiarity with their driving routes and develop models to quantify drivers' accident risks using the telematics data. In addition, we build a latent class model to study the heterogeneity in travel and driving styles based on the telematics data, which has not been investigated in literature. Our main results include: (1) the improvement to the model fit is statistically significant by adding telematics-related characteristics; (2) drivers' familiarity with their driving trips is critical to identify high risk drivers, and the relationship between drivers' familiarity and accident risks is non-linear; (3) the drivers can be classified into two classes, where the first class is the low risk class with 0.54% of its drivers reporting accidents, and the second class is the high risk class with 20.66% of its drivers reporting accidents; and (4) for the low risk class, drivers with high probability of reporting accidents can be identified by travel-behavior-related characteristics, while for the high risk class, they can be identified by driving-behavior-related characteristics. The driver's familiarity will affect the probability of reporting accidents for both classes. Copyright © 2018 Elsevier Ltd. All rights reserved.

77 FR 74685 - Chemical Facility Anti-Terrorism Standards (CFATS) Chemical-Terrorism Vulnerability Information...

Science.gov (United States)

2012-12-17

... DEPARTMENT OF HOMELAND SECURITY [Docket No. DHS-2012-0057] Chemical Facility Anti-Terrorism Standards (CFATS) Chemical- Terrorism Vulnerability Information (CVI) AGENCY: National Protection and...: Comments that include trade secrets, confidential commercial or financial information, Chemical-terrorism...

Terrorism and the Press: A Study of the War on Terrorism, Islamophobia, and Al Jazeera

Directory of Open Access Journals (Sweden)

Chao-Chen Lin

2017-10-01

Full Text Available This paper focuses on the subject of terrorism neglected in Taiwan and discusses the role of news media in reporting terrorism. Based on a literature review and in-depth interview, this research looks to restore the fact of reporting on 911 and terrorism from Al Jazeera and surveys the intense relationship with U.S. This paper argues to rethink Islamophobia and terrorism by exploring the different definitions of terrorism between the West and Middle East. Arab journalists need to report on terrorism and face the danger from it.

Risk classification and cream skimming on the deregulated German insurance market

OpenAIRE

Beschorner, Patrick F. E.

2003-01-01

In a two-stage model insurance companies first decide upon risk classification and then compete in prices. I show that the observed heterogeneous behavior of similar firms is compatible with rational behavior. On the deregulated German insurance market individual application of classification schemes induces welfare losses due to cream skimming. Classification costs and pricing above marginal cost can be prevented by common industry-wide loss statistics which already exist to a rudimentary ex...

Model estimation of claim risk and premium for motor vehicle insurance by using Bayesian method

Science.gov (United States)

Sukono; Riaman; Lesmana, E.; Wulandari, R.; Napitupulu, H.; Supian, S.

2018-01-01

Risk models need to be estimated by the insurance company in order to predict the magnitude of the claim and determine the premiums charged to the insured. This is intended to prevent losses in the future. In this paper, we discuss the estimation of risk model claims and motor vehicle insurance premiums using Bayesian methods approach. It is assumed that the frequency of claims follow a Poisson distribution, while a number of claims assumed to follow a Gamma distribution. The estimation of parameters of the distribution of the frequency and amount of claims are made by using Bayesian methods. Furthermore, the estimator distribution of frequency and amount of claims are used to estimate the aggregate risk models as well as the value of the mean and variance. The mean and variance estimator that aggregate risk, was used to predict the premium eligible to be charged to the insured. Based on the analysis results, it is shown that the frequency of claims follow a Poisson distribution with parameter values λ is 5.827. While a number of claims follow the Gamma distribution with parameter values p is 7.922 and θ is 1.414. Therefore, the obtained values of the mean and variance of the aggregate claims respectively are IDR 32,667,489.88 and IDR 38,453,900,000,000.00. In this paper the prediction of the pure premium eligible charged to the insured is obtained, which amounting to IDR 2,722,290.82. The prediction of the claims and premiums aggregate can be used as a reference for the insurance company’s decision-making in management of reserves and premiums of motor vehicle insurance.

From Risk to Opportunity. How Insurers Can Proactively and Profitably Manage Climate Change

International Nuclear Information System (INIS)

Mills, E.; Lecomte, E.

2006-08-01

Last year's USD 45 billion of insured losses from Hurricane Katrina was only the latest reminder of why investors and consumers are concerned about the impacts of climate change on the insurance industry. Twelve months after the devastating storm hit New Orleans, insurers and their shareholders are still feeling the ripples. Record insured losses, rating downgrades, coverage pullbacks and class-action lawsuits are just a few of the reverberations that have been felt across the industry. Meanwhile, consumers are feeling the combined sting of price shocks and reduced availability. So serious is the issue that 20 leading investors, representing over $800 billion in assets, called on the nation's largest insurance companies to disclose their financial exposure from climate change and steps they are taking to reduce those financial impacts. But, while most of the attention is focused on the growing risks, climate change also creates vast business opportunities to be part of the solution to global warming. Just as the industry has historically asserted its leadership to minimize risks from building fires and earthquakes, insurers have a huge opportunity today to develop creative loss-prevention products and services that will reduce climate-related losses for consumers, governments and insurers, while trimming the emissions causing global warming. This report focuses on the encouraging progress made by insurers to develop these new products and services. It identifies more than 190 concrete examples available, or soon-to-be-available, from dozens of insurance providers in 16 countries. In addition to benefiting insurers' core business and investment activities, these programs afford insurers the opportunity to differentiate their products from their competitors, while also enhancing their reputation with customers who are increasingly looking for all sectors of the industry to come forward with effective responses to the threats caused by climate change. More than half

Investigating the role of electronic insurance on decreasing exporting charges risks

Directory of Open Access Journals (Sweden)

Farideh MosallaiZade

2014-07-01

Full Text Available Nowadays, the electronic insurance (EI is one the electronic services, which is used in most countries, and that is one effective factor in developing the exporting products and services. On the other hand, the incurrence industry and very especially EI represent their importance both domestically and internationally. One of the ways for transferring the exporting risks is to transfer the risks to the insurer. This paper examines the characteristics of EI and the effects of decreasing the exporting risk charges. The proposed study designs a questionnaire in the form of Likert scale, the validity of the questionnaire is validated by some the experts' viewpoints and the Cronbach' alpha is measure as 0.794. The results of applying Freedman test have disclosed that facilitating export activities was the most important factor followed by access to target export market information.

Fuzzy-probabilistic multi agent system for breast cancer risk assessment and insurance premium assignment.

Science.gov (United States)

Tatari, Farzaneh; Akbarzadeh-T, Mohammad-R; Sabahi, Ahmad

2012-12-01

In this paper, we present an agent-based system for distributed risk assessment of breast cancer development employing fuzzy and probabilistic computing. The proposed fuzzy multi agent system consists of multiple fuzzy agents that benefit from fuzzy set theory to demonstrate their soft information (linguistic information). Fuzzy risk assessment is quantified by two linguistic variables of high and low. Through fuzzy computations, the multi agent system computes the fuzzy probabilities of breast cancer development based on various risk factors. By such ranking of high risk and low risk fuzzy probabilities, the multi agent system (MAS) decides whether the risk of breast cancer development is high or low. This information is then fed into an insurance premium adjuster in order to provide preventive decision making as well as to make appropriate adjustment of insurance premium and risk. This final step of insurance analysis also provides a numeric measure to demonstrate the utility of the approach. Furthermore, actual data are gathered from two hospitals in Mashhad during 1 year. The results are then compared with a fuzzy distributed approach. Copyright © 2012 Elsevier Inc. All rights reserved.

Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

Directory of Open Access Journals (Sweden)

Burić Milijana Novović

2018-01-01

Full Text Available Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM, as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

Terrorism as Media Event

Directory of Open Access Journals (Sweden)

2012-07-01

Full Text Available Proving that terrorism should be seen as a media event (as defined by Dayan and Katzafter 9/11 and treated accordingly. We have turned to the work of Dayan and Katz and GeorgeGerbner’s for a definition of media events and of violence in the mass media. This paper is ahermeneutical interpretation of the concept of terrorism and its relation to communication. We haveput forward a better understanding of the complex concept of terrorism and its definitions in the massmedia context. Terrorism nowadays should always be defined within its inherent relation with themedia. The article is the first to define terrorism as media evenit in Dayan and Katz’s terms.

Rainfall Intensity and Frequency Explain Production Basis Risk in Cumulative Rain Index Insurance

Science.gov (United States)

Muneepeerakul, Chitsomanus P.; Muneepeerakul, Rachata; Huffaker, Ray G.

2017-12-01

With minimal moral hazard and adverse selection, weather index insurance promises financial resilience to farmers struck by harsh weather conditions through swift compensation at affordable premium. Despite these advantages, the very nature of indexing gives rise to production basis risk as the selected weather indexes do not sufficiently correspond to actual damages. To address this problem, we develop a stochastic yield model, built upon a stochastic soil moisture model driven by marked Poisson rainfall. Our analysis shows that even under similar temperature and rainfall amount yields can differ significantly; this was empirically supported by a 2-year field experiment in which rain-fed maize was grown under very similar total rainfall. Here, the year with more intense, less-frequent rainfall produces a better yield—a rare counter evidence to most climate change projections. Through a stochastic yield model, we demonstrate the crucial roles of rainfall intensity and frequency in determining the yield. Importantly, the model allows us to compute rainfall pattern-related basis risk inherent in cumulative rain index insurance. The model results and a case study herein clearly show that total rainfall is a poor indicator of yield, imposing unnecessary production basis risk on farmers and false-positive payouts on insurers. Incorporating rainfall intensity and frequency in the design of rain index insurance can offer farmers better protection, while maintaining the attractive features of the weather index insurance and thus fulfilling its promise of financial resilience.

Psychological consequences caused by nuclear terrorism

International Nuclear Information System (INIS)

Peyankov, I.

2009-01-01

The psychological consequences caused by eventual nuclear terrorist act are believed to be some of the most: serious. in this article are presented the issues concerning psychological effects as psychological suffering, alteration of risk estimation, changes of individual and social behavior, etc. The most common psychological consequences as a result of the most popular large-scale nuclear accidents in Chernobyl, TMI (USA), Goiania (Brazil) are described. Some of the main factors, such as sex, age, health status, social status and etc, are analyzed. These factors determine the expression of psychological reactions provoked by nuclear accidents or eventual act of nuclear terrorism. In addition, the main precautions to cope with psychological consequences caused by nuclear terrorism are listed

Evaluating the Welfare of Index Insurance

DEFF Research Database (Denmark)

Harrison, Glenn W.; Martínez-Correa, Jimmy; Ng, Jia Min

affects both the demand for the product and the welfare of individuals making take-up decisions. We study the impact of basis risk on insurance take-up and on expected welfare in a laboratory experiment with an insurance frame. We measure the expected welfare of index insurance to individuals while......Index insurance was conceived to be a product that would simplify the claim settlement process and make it more objective, reducing transaction costs and moral hazard. However, index insurance also exposes the insured to basis risk, which arises because there can be a mismatch between the index...... risks that are different from preferences exhibited for their actuarially-equivalent counterparts. We study the potential link between index insurance demand and attitudes towards compound risks. We test the hypothesis that the compound risk nature of index insurance induced by basis risk negatively...

31 CFR 594.311 - Terrorism.

Science.gov (United States)

2010-07-01

... 31 Money and Finance: Treasury 3 2010-07-01 2010-07-01 false Terrorism. 594.311 Section 594.311... ASSETS CONTROL, DEPARTMENT OF THE TREASURY GLOBAL TERRORISM SANCTIONS REGULATIONS General Definitions § 594.311 Terrorism. The term terrorism means an activity that: (a) Involves a violent act or an act...

Environmental risk management for: insurance requirements, mergers and acquisitions and plant closures

Energy Technology Data Exchange (ETDEWEB)

Pizzi, F.P.

1985-03-01

Industry cannot rely on external sources such as EIL Insurance as the primary vehicle for minimizing or reducing environmental liabilities. We must develop strong internal risk management programs and procedures to eliminate or minimize the risks from operations.

Coping with the threat of terrorism: a review.

Science.gov (United States)

Maguen, Shira; Papa, Anthony; Litz, Brett T

2008-01-01

Terrorism creates a ripple of fear and uncertainty. Although most individuals are resilient and recover over time, a minority remains functionally and psychologically impaired. In this paper, we examine research on coping strategies employed in the aftermath of terrorist events, theories and empirical findings related to appraisal processes that influence individuals' primary attributions of risk, and normative processes that shape secondary appraisals, which predict specific coping behaviors. We also describe individual diatheses and factors promoting resilience that may influence coping and functioning in the face of terrorism. Finally, we offer suggestions for future research.

On Welfare and Terror: Social Welfare Policies and Political-Economic Roots of Terrorism

Science.gov (United States)

Burgoon, Brian

2006-01-01

This article argues that social welfare policies may reduce international and domestic terrorism. Social policies likely affect terrorism in offsetting ways but, on balance, should diminish preferences for terrorism by reducing economic insecurity, inequality, poverty, and religious-political extremism. Thus, countries with more generous welfare…

Willingness to Overpay for Insurance and for Consumer Credit: Search and Risk Behavior Under Price Dispersion

Directory of Open Access Journals (Sweden)

Sergey MALAKHOV

2014-11-01

Full Text Available When income growth under price dispersion reduces the time of search and raises prices of purchases, the increase in purchase price can be presented as the increase in the willingness to pay for insurance or the willingness to pay for consumer credit. The optimal consumer decision represents the trade-off between the propensity to search for beneficial insurance or consumer credit, and marginal savings on insurance policy or consumer credit. Under price dispersion the indirect utility function takes the form of cubic parabola, where the risk aversion behavior ends at the saddle point of the comprehensive insurance or the complete consumer credit. The comparative static analysis of the saddle point of the utility function discovers the ambiguity of the departure from risk-neutrality. This ambiguity can produce the ordinary risk seeking behavior as well as mathematical catastrophes of Veblen-effect’s imprudence and over prudence of family altruism. The comeback to risk aversion is also ambiguous and it results either in increasing or in decreasing relative risk aversion. The paper argues that the decreasing relative risk aversion comes to the optimum quantity of money.

Terrorism, distress, and drinking: vulnerability and protective factors.

Science.gov (United States)

Richman, Judith A; Rospenda, Kathleen M; Cloninger, Lea

2009-12-01

Research has demonstrated effects of 9/11 on distress and drinking outcomes in individuals directly affected and indirectly affected across the United States. Fewer studies have addressed vulnerability and protective factors shown to moderate the effects of stress exposure. We report findings from a Midwestern workplace cohort study. Respondents to a 6 wave longitudinal mail survey completed questionnaires prior to September 11, 2001 and again in 2003 and 2005. Regression analyses encompassed measures of terrorism-related beliefs and fears, workplace stressors (sexual harassment, generalized abuse and low decision latitude), marital and parental status, and perceived social support in 2003, and distress and deleterious drinking outcomes in 2005. Analyses showed that terrorism-related fears significantly interacted with workplace stressors and interpersonal social relationships in predicting distress, drinking or both, controlling for pre-9/11 distress and drinking. Gender differences were also found. This article suggests that certain individuals may be at heightened risk for distressful reactions to and/or deleterious drinking resulting from terrorism-related issues and fears due to additional risk factors involving workplace stressors and inadequate interpersonal bonds. However, limitations of the study were noted and future research was recommended.

Rural Households’ Livelihood Capital, Risk Perception, and Willingness to Purchase Earthquake Disaster Insurance: Evidence from Southwestern China

Directory of Open Access Journals (Sweden)

Dingde Xu

2018-06-01

Full Text Available Earthquake disaster insurance can effectively reduce the impact of earthquake disasters on rural households. Exploring rural households’ willingness to purchase earthquake disaster insurance in earthquake disaster areas provides an understanding of the motivations underlying the implementation of an insurance policy. However, few studies have examined the perspectives of rural households, in order to explore the correlations between the rural households’ livelihood capital, their disaster risk perception, and their willingness to purchase earthquake disaster insurance. A cross-sectional survey data including 241 rural households from the most severe disaster counties (cities during the 5 • 12 Wenchuan earthquake was examined with regard to rural households’ livelihood and disaster risk perception, and ordinal logistic regression models were constructed to explore rural households’ willingness to purchase earthquake disaster insurance, as well as the driving mechanism behind this willingness. The results showed that 34.44% of rural households were very willing to purchase earthquake disaster insurance, and 7.05% of rural households were very reluctant to purchase earthquake insurance. Rural households’ livelihood capital and risk perceptions were the most important factors affecting their willingness to purchase earthquake disaster insurance. Rural households with higher scores on natural capital, physical capital, possibility, and worry were more likely to purchase earthquake disaster insurance. Specifically, keeping all other variables constant, every one unit increase in nature capital and physical capital corresponded to an increase in the odds of willingness to purchase earthquake disaster insurance by a factor of 0.14 and 0.06, respectively; every one unit increase in possibility and worry corresponded to an increase in the odds of willingness to purchase earthquake disaster insurance by a factor of 0.03 and 0.04, respectively

Probabilistic Insurance

NARCIS (Netherlands)

Wakker, P.P.; Thaler, R.H.; Tversky, A.

1997-01-01

Probabilistic insurance is an insurance policy involving a small probability that the consumer will not be reimbursed. Survey data suggest that people dislike probabilistic insurance and demand more than a 20% reduction in premium to compensate for a 1% default risk. These observations cannot be

Probabilistic Insurance

NARCIS (Netherlands)

P.P. Wakker (Peter); R.H. Thaler (Richard); A. Tversky (Amos)

1997-01-01

textabstractProbabilistic insurance is an insurance policy involving a small probability that the consumer will not be reimbursed. Survey data suggest that people dislike probabilistic insurance and demand more than a 20% reduction in the premium to compensate for a 1% default risk. While these

Terrorism and the Press: A Study of the War on Terrorism, Islamophobia, and Al Jazeera

OpenAIRE

Chao-Chen Lin

2017-01-01

This paper focuses on the subject of terrorism neglected in Taiwan and discusses the role of news media in reporting terrorism. Based on a literature review and in-depth interview, this research looks to restore the fact of reporting on 911 and terrorism from Al Jazeera and surveys the intense relationship with U.S. This paper argues to rethink Islamophobia and terrorism by exploring the different definitions of terrorism between the West and Middle East. Arab journalists need to report on te...

Financing agribusiness: Insurance coverage as protection against credit risk of warehouse receipt collateral

Directory of Open Access Journals (Sweden)

Jovičić Daliborka

2017-01-01

Full Text Available Financing agribusiness by warehouse receipts allows the agricultural producers to obtain working capital on the basis of agricultural products stored in licensed warehouses, as collateral. The implementation of the system of licensed warehouses and issuance of warehouse receipts as collateral for obtaining a bank loan is supported by the European Bank for Reconstruction and Development and it has had positive results in the neighbouring countries. The precondition for financing this project was to establish a Compensation Fund for providing insurance coverage for licensed warehouses against professional liability. However, in the lack of an adequate legal framework, the operational risk is possible to occur. Bearing in mind that Serbia has a tradition in insurance industry and a number of operating insurance companies, the issue is that of the economic benefit and the method of insuring against this risk. The paper will present a detailed analysis of the operation of the Fund, capital requirement, solvency margin and a critical review of the Law on Public Warehouses which regulates the rights and obligations of the Compensation Fund in the case of loss occurrence.

31 CFR 50.36 - Allocation of premium income associated with entities that do share profits and losses with...

Science.gov (United States)

2010-07-01

... Money and Finance: Treasury Office of the Secretary of the Treasury TERRORISM RISK INSURANCE PROGRAM State Residual Market Insurance Entities; Workers' Compensation Funds § 50.36 Allocation of premium... agreement to place and service insurance contracts for a State residual market insurance entity or a State...

Epidemiology of terror-related versus non-terror-related traumatic injury in children.

Science.gov (United States)

Aharonson-Daniel, Limor; Waisman, Yehezkel; Dannon, Yehuda L; Peleg, Kobi

2003-10-01

In the past 2 years hundreds of children in Israel have been injured in terrorist attacks. There is a paucity of data on the epidemiology of terror-related trauma in the pediatric population and its effect on the health care system. The objective of this study was to review the accumulated Israeli experience with medical care to young victims of terrorism and to use the knowledge obtained to contribute to the preparedness of medical personnel for future events. Data on all patients who were younger than 18 years and were hospitalized from October 1, 2000, to December 31, 2001, for injuries sustained in a terrorist attack were obtained from the Israel National Trauma Registry. The parameters evaluated were patient age and sex, diagnosis, type, mechanism and severity of injury, interhospital transfer, stay in intensive care unit, duration of hospitalization, and need for rehabilitation. Findings were compared with the general pediatric population hospitalized for non-terror-related trauma within the same time period. During the study period, 138 children were hospitalized for a terror-related injury and 8363 for a non-terror-related injury. The study group was significantly older (mean age: 12.3 years [standard deviation: 5.1] v 6.9 years [standard deviation: 5.3]) and sustained proportionately more penetrating injuries (54% [n = 74] vs 9% [n = 725]). Differences were also noted in the proportion of internal injuries to the torso (11% in the patients with terror-related trauma vs 4% in those with non-terror-related injuries), open wounds to the head (13% vs 6%), and critical injuries (Injury Severity Score of 25+; 25% vs 3%). The study group showed greater use of intensive care unit facilities (33% vs 8% in the comparison group), longer median hospitalization time (5 days vs 2 days), and greater need for rehabilitative care (17% vs 1%). Terror-related injuries are more severe than non-terror-related injuries and increase the demand for acute care in children.

46 CFR 308.300 - Insured amount-application.

Science.gov (United States)

2010-10-01

... Shipping MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION EMERGENCY OPERATIONS WAR RISK INSURANCE Second Seamen's War Risk Insurance § 308.300 Insured amount—application. An applicant for Second Seamen's war risk insurance shall not state the amount of insurance desired, which shall be as provided in...

Role of nuclear insurance in US

International Nuclear Information System (INIS)

Bardes, C.R.

2000-01-01

Private insurance companies developed means to provide first-tier nuclear coverage to operators of power plants and other nuclear facilities; US Government initially provided second tier. US insurance companies chose 'pooling' technique as means to provide large amounts of insurance capacity by spreading the risk over a number of insurance companies. Classic example of nuclear risk that presents low frequency, high severity loss potential. Insurers usually spread their risk over a large, fairly stable premium base, as with automobile insurance. The American Nuclear Insurers (ANI) and its roles are introduced in this article

Optimal social insurance with linear income taxation

DEFF Research Database (Denmark)

Bovenberg, Lans; Sørensen, Peter Birch

2009-01-01

We study optimal social insurance aimed at insuring disability risk in the presence of linear income taxation. Optimal disability insurance benefits rise with previous earnings. Optimal insurance is incomplete even though disability risks are exogenous and verifiable so that moral hazard in disab...... in disability insurance is absent. Imperfect insurance is optimal because it encourages workers to insure themselves against disability by working and saving more, thereby alleviating the distortionary impact of the redistributive income tax on labor supply and savings.......We study optimal social insurance aimed at insuring disability risk in the presence of linear income taxation. Optimal disability insurance benefits rise with previous earnings. Optimal insurance is incomplete even though disability risks are exogenous and verifiable so that moral hazard...

Longevity Risk and Natural Hedge Potential in Portfolios Of Life Insurance Products : The Effect of Investment Risk

NARCIS (Netherlands)

Stevens, R.S.P.; De Waegenaere, A.M.B.; Melenberg, B.

2011-01-01

Payments of life insurance products depend on the uncertain future evolution of survival probabilities. This uncertainty is referred to as longevity risk. Existing literature shows that the effect of longevity risk on single life annuities can be substantial, and that there exists a (natural) hedge

CURRENT CHANGES ON INSURANCE MARKET

Directory of Open Access Journals (Sweden)

Madalina Giorgiana MANGRA

2016-12-01

Full Text Available The offer of insurance products is about the requirements and needs of the consumer who must always have information regarding: the type of insurance risk covered and the excluded risks, the sum insured, the payment of premiums and their duration. The accurate information of customer requires, from the commencement of contract and throughout its duration, that he or she is aware of the obligations throughout the contractual period. Most of the Romanians are turning their attention to one of the insurance companies found in the top 10 in 2016, supervised by F.S.A. (Financial Supervision Authority, preferring to have a policy of mandatory household and goods insurance, auto liability or life insurance, but are also interested in travel health insurance when going abroad, private health insurance or private pension insurance. Romanians' reluctance regarding the conclusion of an insurance comes from their distrust in insurance companies (see the situations of companies like Astra Insurance, Carpatica Insurance etc., their personal financial situation and the fear that they will not receive protection if the risk is covered but the insured sum is insufficient

Community rating in the absence of risk equalisation: lessons from the Irish private health insurance market.

Science.gov (United States)

Turner, Brian; Shinnick, Edward

2013-04-01

Ireland's private health insurance market operates on the basis of community rating, alongside open enrolment and lifetime cover. A risk equalisation scheme was introduced in 2003 to bolster community rating. However, in July 2008 the Irish Supreme Court set aside this scheme, on the basis of the interpretation of community rating in Irish legislation. This decision has significant implications for the Irish private health insurance market. This paper reviews the development of the market, focusing in particular on community rating. The breakdown of community rating in a market with multiple insurers with differing risk profiles is discussed. Applying this to the Irish market, it can be seen that the Irish Supreme Court judgment has significant implications for the application of community rating. Specifically, while community rating operates within plans, it no longer operates across the market, leading to high-risk lives paying more, on average, than low-risk lives. It has also led to greater opportunities for insurers to engage in market segmentation. This may have relevance for the design and operation of other community rated markets.

Health Insurance without Single Crossing

DEFF Research Database (Denmark)

Boone, Jan; Schottmüller, Christoph

2017-01-01

Standard insurance models predict that people with high risks have high insurance coverage. It is empirically documented that people with high income have lower health risks and are better insured. We show that income differences between risk types lead to a violation of single crossing...... in an insurance model where people choose treatment intensity. We analyse different market structures and show the following: If insurers have market power, the violation of single crossing caused by income differences and endogenous treatment choice can explain the empirically observed outcome. Our results do...

Terrorism and Investigation Strategies

OpenAIRE

Muhammad Mustofa

2005-01-01

This paper discussed that, for successful implementation of the strategies in investigating terrorism, besides requiring professional skilled investigators, there are some additional requirements that need to be fulfilled. Effective and long term prevention of terrorism should be directed towards producing good social welfare and to minimize every condition that may be conducive to the emergence of terrorism, such as discrimination and marginalization.

Terrorism Financing with Virtual Currencies: Can Regulatory Technology Solutions Combat This?

OpenAIRE

Salami, Iwa

2017-01-01

This article considers the terrorism financing risk associated with the growth of Financial Technology innovations and in particular, focuses on virtual currency products and services. The ease with which cross-border payments by virtual currencies are facilitated, the anonymity surrounding their usage, and their potential to be converted into the fiat financial system, make them ideal for terrorism financing and therefore calls for a coordinated global regulatory response. This article consi...

The effectiveness and development trend of nuclear third party liability insurance in the nuclear risk management

International Nuclear Information System (INIS)

Wang Pei

2010-01-01

Nuclear power considerably benefited mankind since it was utilized peaceably. The cleanness, safety and high efficiency of nuclear power were gradually known and recognized by the public. However at the same time, nuclear power had produced significant accident and consequently caused severe aftereffects during its utilization. Therefore, effective management of nuclear risk and reducing its accident probability are the social responsibilities of every nuclear nation. From the insurance point of view, this document analyzes the validity and development trends of nuclear third party insurance in nuclear risk management. It also introduces effectual experience in this field from nuclear insurance developed countries. This document discusses the necessity of consummating nuclear third party insurance under the aggressive development situation of nuclear power in our country. (author)

Association of direct exposure to terrorism, media exposure to terrorism, and other trauma with emotional and behavioral problems in preschool children.

Science.gov (United States)

Wang, Yanping; Nomura, Yoko; Pat-Horenczyk, Ruth; Doppelt, Osnat; Abramovitz, Robert; Brom, Daniel; Chemtob, Claude

2006-12-01

This study examined the differential impact of various types of trauma exposure on emotional and behavioral problems in preschool children. Participants were 95 mothers of 1- to 4-year-old children in Israel. Results suggested a differential pattern of associations between the types of trauma exposure (i.e., direct exposure to terrorism, media exposure to terrorism, and other trauma) and children's internalizing and externalizing problems. This line of research is important for the identification of risk factors and the development of effective prevention and intervention strategies to promote resilience in preschool children exposed to specific type(s) of trauma.

Breast Cancer Risk Estimation and Personal Insurance: A Qualitative Study Presenting Perspectives from Canadian Patients and Decision Makers

Directory of Open Access Journals (Sweden)

Gratien Dalpé

2017-09-01

Full Text Available Genetic stratification approaches in personalized medicine may considerably improve our ability to predict breast cancer risk for women at higher risk of developing breast cancer. Notwithstanding these advantages, concerns have been raised about the use of the genetic information derived in these processes, outside of the research and medical health care settings, by third parties such as insurers. Indeed, insurance applicants are asked to consent to insurers accessing their medical information (implicitly including genetic to verify or determine their insurability level, or eligibility to certain insurance products. This use of genetic information may result in the differential treatment of individuals based on their genetic information, which could lead to higher premium, exclusionary clauses or even the denial of coverage. This phenomenon has been commonly referred to as “Genetic Discrimination” (GD. In the Canadian context, where federal Bill S-201, An Act to prohibit and prevent genetic discrimination, has recently been enacted but may be subject to constitutional challenges, information about potential risks to insurability may raise issues in the clinical context. We conducted a survey with women in Quebec who have never been diagnosed with breast cancer to document their perspectives. We complemented the research with data from 14 semi-structured interviews with decision-makers in Quebec to discuss institutional issues raised by the use of genetic information by insurers. Our results provide findings on five main issues: (1 the reluctance to undergo genetic screening test due to insurability concerns, (2 insurers' interest in genetic information, (3 the duty to disclose genetic information to insurers, (4 the disclosure of potential impacts on insurability before genetic testing, and (5 the status of genetic information compared to other health data. Overall, both groups of participants (the women surveyed and the decision

Behavioural aspects of terrorism.

Science.gov (United States)

Leistedt, Samuel J

2013-05-10

Behavioural and social sciences are useful in collecting and analysing intelligence data, understanding terrorism, and developing strategies to combat terrorism. This article aims to examine the psychopathological concepts of terrorism and discusses the developing roles for behavioural scientists. A systematic review was conducted of studies investigating behavioural aspects of terrorism. These studies were identified by a systematic search of databases, textbooks, and a supplementary manual search of references. Several fundamental concepts were identified that continue to influence the motives and the majority of the behaviours of those who support or engage in this kind of specific violence. Regardless of the psychological aspects and new roles for psychiatrists, the behavioural sciences will continue to be called upon to assist in developing better methods to gather and analyse intelligence, to understand terrorism, and perhaps to stem the radicalisation process. Copyright © 2013 Elsevier Ireland Ltd. All rights reserved.

Relative risk analysis of several manufactured nanomaterials: an insurance industry context.

Science.gov (United States)

Robichaud, Christine Ogilvie; Tanzil, Dicksen; Weilenmann, Ulrich; Wiesner, Mark R

2005-11-15

A relative risk assessment is presented for the industrial fabrication of several nanomaterials. The production processes for five nanomaterials were selected for this analysis, based on their current or near-term potential for large-scale production and commercialization: single-walled carbon nanotubes, bucky balls (C60), one variety of quantum dots, alumoxane nanoparticles, and nano-titanium dioxide. The assessment focused on the activities surrounding the fabrication of nanomaterials, exclusive of any impacts or risks with the nanomaterials themselves. A representative synthesis method was selected for each nanomaterial based on its potential for scaleup. A list of input materials, output materials, and waste streams for each step of fabrication was developed and entered into a database that included key process characteristics such as temperature and pressure. The physical-chemical properties and quantities of the inventoried materials were used to assess relative risk based on factors such as volatility, carcinogenicity, flammability, toxicity, and persistence. These factors were first used to qualitatively rank risk, then combined using an actuarial protocol developed by the insurance industry for the purpose of calculating insurance premiums for chemical manufacturers. This protocol ranks three categories of risk relative to a 100 point scale (where 100 represents maximum risk): incident risk, normal operations risk, and latent contamination risk. Results from this analysis determined that relative environmental risk from manufacturing each of these five materials was comparatively low in relation to other common industrial manufacturing processes.

On the complex quantification of risk: systems-based perspective on terrorism.

Science.gov (United States)

Haimes, Yacov Y

2011-08-01

This article highlights the complexity of the quantification of the multidimensional risk function, develops five systems-based premises on quantifying the risk of terrorism to a threatened system, and advocates the quantification of vulnerability and resilience through the states of the system. The five premises are: (i) There exists interdependence between a specific threat to a system by terrorist networks and the states of the targeted system, as represented through the system's vulnerability, resilience, and criticality-impact. (ii) A specific threat, its probability, its timing, the states of the targeted system, and the probability of consequences can be interdependent. (iii) The two questions in the risk assessment process: "What is the likelihood?" and "What are the consequences?" can be interdependent. (iv) Risk management policy options can reduce both the likelihood of a threat to a targeted system and the associated likelihood of consequences by changing the states (including both vulnerability and resilience) of the system. (v) The quantification of risk to a vulnerable system from a specific threat must be built on a systemic and repeatable modeling process, by recognizing that the states of the system constitute an essential step to construct quantitative metrics of the consequences based on intelligence gathering, expert evidence, and other qualitative information. The fact that the states of all systems are functions of time (among other variables) makes the time frame pivotal in each component of the process of risk assessment, management, and communication. Thus, risk to a system, caused by an initiating event (e.g., a threat) is a multidimensional function of the specific threat, its probability and time frame, the states of the system (representing vulnerability and resilience), and the probabilistic multidimensional consequences. © 2011 Society for Risk Analysis.

Mediating Trust in Terrorism Coverage

DEFF Research Database (Denmark)

Mogensen, Kirsten

crisis. While the framework is presented in the context of television coverage of a terror-related crisis situation, it can equally be used in connection with all other forms of mediated trust. Key words: National crisis, risk communication, crisis management, television coverage, mediated trust.......Mass mediated risk communication can contribute to perceptions of threats and fear of “others” and/or to perceptions of trust in fellow citizens and society to overcome problems. This paper outlines a cross-disciplinary holistic framework for research in mediated trust building during an acute...

40 CFR 280.97 - Insurance and risk retention group coverage.

Science.gov (United States)

2010-07-01

... UNDERGROUND STORAGE TANKS (UST) Financial Responsibility § 280.97 Insurance and risk retention group coverage... information and the brackets deleted: (1) Endorsement Name: [name of each covered location] Address: [address... liability, and exclusions of the policy.] I hereby certify that the wording of this instrument is identical...

Statistical concepts of a priori and a posteriori risk classification in insurance

NARCIS (Netherlands)

Antonio, K.; Valdez, E.

2012-01-01

Everyday we face all kinds of risks, and insurance is in the business of providing us a means to transfer or share these risks, usually to eliminate or reduce the resulting financial burden, in exchange for a predetermined price or tariff. Actuaries are considered professional experts in the

Optimal security investments and extreme risk.

Science.gov (United States)

Mohtadi, Hamid; Agiwal, Swati

2012-08-01

In the aftermath of 9/11, concern over security increased dramatically in both the public and the private sector. Yet, no clear algorithm exists to inform firms on the amount and the timing of security investments to mitigate the impact of catastrophic risks. The goal of this article is to devise an optimum investment strategy for firms to mitigate exposure to catastrophic risks, focusing on how much to invest and when to invest. The latter question addresses the issue of whether postponing a risk mitigating decision is an optimal strategy or not. Accordingly, we develop and estimate both a one-period model and a multiperiod model within the framework of extreme value theory (EVT). We calibrate these models using probability measures for catastrophic terrorism risks associated with attacks on the food sector. We then compare our findings with the purchase of catastrophic risk insurance. © 2012 Society for Risk Analysis.

Considering threats of nuclear terrorism

International Nuclear Information System (INIS)

Sato, Satoshi

2013-01-01

Anti-terrorism measures of nuclear power station in Japan consisted of three physical protection areas separated into limited access area, protected area with disposition of riot police riding in special guard vehicle, and inner area. Drilling of measures to protect against terrorism had been conducted based on design basis threat (DBT) and effectiveness of anti-terrorism measures corresponding with updated DBT had been evaluated by the inspection. Since nuclear power station had been target of terrorism using bomb, aircraft or military operation in overseas countries, anti-terrorism measures of nuclear power station in Japan should be paid more attention so as to overcome their weakness supported by Government's commitments like United States. (T. Tanaka)

Fighting terrorism in Africa: Benchmarking policy harmonization

Science.gov (United States)

Asongu, Simplice A.; Tchamyou, Vanessa S.; Minkoua N., Jules R.; Asongu, Ndemaze; Tchamyou, Nina P.

2018-02-01

This study assesses the feasibility of policy harmonization in the fight against terrorism in 53 African countries with data for the period 1980-2012. Four terrorism variables are used, namely: domestic, transnational, unclear and total terrorism dynamics. The empirical evidence is based on absolute beta catch-up and sigma convergence estimation techniques. There is substantial absence of catch-up. The lowest rate of convergence in terrorism is in landlocked countries for regressions pertaining to unclear terrorism (3.43% per annum for 174.9 years) while the highest rate of convergence is in upper-middle-income countries in domestic terrorism regressions (15.33% per annum for 39.13 years). After comparing results from the two estimation techniques, it is apparent that in the contemporary era, countries with low levels of terrorism are not catching-up their counterparts with high levels of terrorism. As a policy implication, whereas some common policies may be feasibly adopted for the fight against terrorism, the findings based on the last periodic phase (2004-2012) are indicative that country-specific policies would better pay-off in the fight against terrorism than blanket common policies. Some suggestions of measures in fighting transnational terrorism have been discussed in the light of an anticipated surge in cross-national terrorism incidences in the coming years.

Macroprudential Insurance Regulation: A Swiss Case Study

OpenAIRE

Philippe Deprez; Mario V. Wüthrich

2016-01-01

This article provides a case study that analyzes national macroprudential insurance regulation in Switzerland. We consider an insurance market that is based on data from the Swiss private insurance industry. We stress this market with several scenarios related to financial and insurance risks, and we analyze the resulting risk capitals of the insurance companies. This stress-test analysis provides insights into the vulnerability of the Swiss private insurance sector to different risks and sho...

Workplace Preparedness for Terrorism

National Research Council Canada - National Science Library

Ursano, Robert J

2006-01-01

Comprehensive workplace preparedness for terrorism must address and integrate the psychological and behavioral aspects of terrorism preparedness and response in order to address issues of human continuity...

Psychiatry and terrorism.

Science.gov (United States)

Stoddard, Frederick J; Gold, Joel; Henderson, Schuyler W; Merlino, Joseph P; Norwood, Ann; Post, Jerrold M; Shanfield, Stephen; Weine, Stevan; Katz, Craig L

2011-08-01

Terrorism has dominated the domestic and international landscape since 9/11. Like other fields, psychiatry was not well prepared. With the 10th anniversary of the 9/11 attack approaching, it is timely to consider what can be done to prepare before the next event. Much has been learned to provide knowledge and resources. The roles of psychiatrists are challenged by what is known of the causes of, consequences of, and responses to terrorism. Reflecting on knowledge from before and since 9/11 introduces concepts, how individuals become terrorists, how to evaluate the psychiatric and behavioral effects of terrorism, and how to expand treatments, behavioral health interventions, public policy initiatives, and other responses for its victims. New research, clinical approaches, and policy perspectives inform strategies to reduce fear and cope with the aftermath. This article identifies the psychiatric training, skills and services, and ethical considerations necessary to prevent or reduce terrorism and its tragic consequences and to enhance resilience.

THE ROLE OF REINSURANCE IN INSURANCE

Directory of Open Access Journals (Sweden)

VĂDUVA MARIA

2018-02-01

Full Text Available Insurance companies carry out risk spreading through the co-insurance and reinsurance mechanism, consisting of the participation of more companies in the provision of high-value assets. Reinsurance is a form of insurance whereby an insurance organization can transfer to another reinsurer, partly or fully, its payment obligations arising from the insurance contracts that it has concluded. In the reinsurance ratios, the insurance companies appear in a double position - giving other insurance companies some of the risks assumed under direct insurance, being reinsured, but receiving different risks to reinsurance, acquiring the quality of reinsurers. Reinsurance intends to satisfy some multiple needs of the direct insurer and can provide means to counteract the risks associated with the fluctuations in compensation costs, the reinsurer will contribute to the payment of compensations on behalf of the reinsurer. Life insurance has characteristics that influence reinsurance: the average life of the insurance, the insurance is concluded for a fixed amount insured, the capital accumulation. In life reinsurance, almost all reinsurance arrangements are proportional agreements, and the largest share have the "surplus" agreements. Reinsurance plays an important role because it fulfills the following functions: it confers capacity, creates stability, helps to consolidate financial strength. The adjustment of the client portfolio in terms of the changes of reinsurance agreement, required by the reinsurer, can only be done by concluding the insurance contracts. In life insurance, reinsurance contracts contain provisions that meet the need of the insurer to have long-term protection.

Optimal Premium Pricing for a Heterogeneous Portfolio of Insurance Risks

OpenAIRE

Pantelous, Athanasios A.; Frangos, Nicholas E.; Zimbidis, Alexandros A.

2009-01-01

The paper revisits the classical problem of premium rating within a heterogeneous portfolio of insurance risks using a continuous stochastic control framework. The portfolio is divided into several classes where each class interacts with the others. The risks are modelled dynamically by the means of a Brownian motion. This dynamic approach is also transferred to the design of the premium process. The premium is not constant but equals the drift of the Brownian motion plus a controlled percent...

Use of Neural Networks in Risk Assessment and Optimization of Insurance Cover in Innovative Enterprises

Directory of Open Access Journals (Sweden)

Pukała Ryszard

2016-09-01

Full Text Available The scientific objective of the paper is to present the findings of a study into the use of artificial neural networks in quantifying activity related risks of an innovative enterprise and to optimize its insurance cover in order to minimize the probable financial losses whenever they materialize. The Kohonen network involving the activation of 51 input variables was applied in the study. The outcomes of the stimulation for the given set of variables made it possible to determine the probability of a threat occurring in the classes. The results of the analysis were used to prepare an optimal insurance cover for the activities of the innovative company. The research findings are suitable for use in risk theory as well as in issues relating to entrepreneurship and insurance. The analytical device employed can also be put to practical use as a support tool in corporate risk management.

Socioconomic nature of terrorism

Directory of Open Access Journals (Sweden)

Valeriy Petrovich Chichkanov

2013-12-01

Full Text Available In the article, the theoretical and methodological foundations of investigation of the  socioeconomic nature of terrorism are considered. Hypothesis of research is the existence of methodological criteria of territory classification on the basis of external and internal terrorism. On the basis of the analysis of theoretical works of national and foreign authors, normative documents of state and international level the genesis of approaches to the understanding of the essence of modern terrorism, its contents, the subject-object relations and manifestation forms is received. As the result, according to the authors’ definition “terrorism” is understood as an ideology connected with deliberate violence or threats against the civilian population or property to influence on the government or the interstate organizations. In the work, the factors of development and spreading of terrorism in the Russian Federation’s regions are allocated and quantitatively proved. Weight parameters of the specified factors are determined. The methodological differentiation of the specified factors on factors of terrorism external (attacks from the outside and an internal form (distribution and realization of radical ideas within the region in the territory is the distinctive feature of the conducted research. During the research, the cluster analysis of a region is carried out to distribute of Russia’s regions according to the typological characteristic of the region of internal and external terrorism. The obtained data are verified in accordance with empirical data, the hypothesis of the existence of methodological criteria of the region classification on the basis of external and internal terrorism is proved.

Managing hydroclimatological risk to water supply with option contracts and reservoir index insurance

Science.gov (United States)

Brown, Casey; Carriquiry, Miguel

2007-11-01

This paper explores the performance of a system of economic instruments designed to facilitate the reduction of hydroclimatologic variability-induced impacts on stakeholders of shared water supply. The system is composed of bulk water option contracts between urban water suppliers and agricultural users and insurance indexed on reservoir inflows. The insurance is designed to cover the financial needs of the water supplier in situations where the option is likely to be exercised. Insurance provides the irregularly needed funds for exercising the water options. The combined option contract - reservoir index insurance system creates risk sharing between sectors that is currently lacking in many shared water situations. Contracts are designed for a shared agriculture - urban water system in Metro Manila, Philippines, using optimization and Monte Carlo analysis. Observed reservoir inflows are used to simulate contract performance. Results indicate the option - insurance design effectively smooths water supply costs of hydrologic variability for both agriculture and urban water.

Anti-Romani Terrorism in Europe

Directory of Open Access Journals (Sweden)

Mareš Miroslav

2016-12-01

Full Text Available This article analyzes terrorism against the Roma in Europe. It identifies acts of terrorism in violence that targets the largest stateless nation on the continent and categorizes this terrorism according to current research methods. Focusing on events in both Western and Eastern Europe, the article analyses and compares the most significant terrorist acts against the Roma of recent years. It concludes that anti-Romani terrorism is heterogeneous in terms of tactics, strategies, and ideological justification, yet can usually be subsumed into the broadly conceived category of far-right terrorism. The variety of attacks suggests that terrorist acts are an offshoot of the broad spectrum of anti-Romani activity, and are influenced by contemporary trends in inter-ethnic violence.

Modern terrorism: concept and approach analysis

OpenAIRE

CHAIKA ALEXANDER VIKTOROVICH

2015-01-01

The problem of modern terrorism as an image of counterculture environment is considered. The analysis of concepts and approaches of foreign and native authors, specialists of terrorism problem research was conducted. Separate features of the modern terrorism are considered and emphasized. The author drew conceptual conclusions on the basis of dialectical approach to modern terrorism counterculture phenomenon research.

Macroprudential Insurance Regulation: A Swiss Case Study

Directory of Open Access Journals (Sweden)

Philippe Deprez

2016-12-01

Full Text Available This article provides a case study that analyzes national macroprudential insurance regulation in Switzerland. We consider an insurance market that is based on data from the Swiss private insurance industry. We stress this market with several scenarios related to financial and insurance risks, and we analyze the resulting risk capitals of the insurance companies. This stress-test analysis provides insights into the vulnerability of the Swiss private insurance sector to different risks and shocks.

The effects of statistical information on risk and ambiguity attitudes, and on rational insurance decisions

NARCIS (Netherlands)

P.P. Wakker (Peter); D.R.M. Timmermans (Danielle); I. Machielse (Irma)

2007-01-01

textabstractThis paper presents a field study into the effects of statistical information concerning risks on willingness to take insurance, with special attention being paid to the usefulness of these effects for the clients (the insured). Unlike many academic studies, we were able to use in-depth

The Effects of Terrorism on the Travel and Tourism Industry

Directory of Open Access Journals (Sweden)

David Mc. A Baker

2014-11-01

Full Text Available The impact of terrorism on the travel and tourism industry can be enormous. It can lead to unemployment, homelessness, deflation, and many other social and economic ills. The contribution of tourism for many countries is so great that any downturn in the industry is a cause of major concern for many governments. The repercussions are left in many other industries associated with tourism like airlines, hotels, restaurants and shops that cater to the tourists and allied services. Terrorism is an enigmatic and compelling phenomenon, and its relationship with tourism is complex and multifaceted. This paper aims to clarify this relationship and examines the relationship between selected factors and tourists’ decision-making process for destination choice. Tourists’ risk perception associated with terrorism served as a basis for the analysis.

31 CFR 50.30 - General participation requirements.

Science.gov (United States)

2010-07-01

.... 50.30 Section 50.30 Money and Finance: Treasury Office of the Secretary of the Treasury TERRORISM RISK INSURANCE PROGRAM State Residual Market Insurance Entities; Workers' Compensation Funds § 50.30 General participation requirements. (a) Insurers. As defined in § 50.5(f), all State residual market...

Innovation in drought risk management: exploring the potential of weather index insurance

Science.gov (United States)

Iglesias, E.; Baez, K.

2012-04-01

Many family farming and indigenous communities depend on grazing livestock activities and are particularly prone to drought risks. Vulnerability to drought limits the ability of these households to exit poverty and in many cases leads to environmental degradation. It is well known that uninsured exposure exacerbates income inequality in farming systems and eventually results in welfare losses for rural families. The advantages of farmers who have access to financial tools have been widely acknowledged. However, high administrative costs of traditional insurance hinder small farmers' access to risk management tools. One of the main problems in insurance design relates to the lack of quality data to estimate the risk premium. In rural areas where there are no historical records of farm production data on adverse events such as drought. New technologies such as remote sensing help to overcome this problem and generate information from these areas that otherwise would be impossible or too expensive to obtain. In this paper, we use a satellite based vegetation index (NDVI) and develop a stochastic model to analyse the potential of index insurance to address the risk of drought in Chilean grazing lands. Our results suggest that contract design is a key issue to improve the correlation of the index with individual farm losses, thus reducing basis risk. In particular, we find that the definition of homogeneous areas and the selection of the triggering index threshold are critical issues and show the incidence of different contract designs on (i) the probability that the farmer experience losses but does not receive compensation (false negative) and (ii) the probability that the index triggers compensation but the farmer does not experience drought losses (false negative). Both aspects are key issues to offer the farmer an adequate protection against droughts and guarantee the affordability of the risk premium.

Against CBRN terrorism

International Nuclear Information System (INIS)

Inoue, Tadao

2016-01-01

Although CBRN (Chemical, Biological, Radiological, Nuclear) terrorism has seldom happened in recent terrorist attacks, a large number of victims would appear leading to disastrous situation if it arises. This paper discussed what CBRN terrorism is, why terrorists are interested in these weapons, and how to deal with these cases, with reference to the lessons learnt from the Tokyo subway sarin event, which occurred in Japan. It also outlined the features of CBRN terrorism and protective measures against it. CBRN terrorism is the terror activity using unusual weapons and agents such as chemicals, biological agents, radioactive substances, and nuclear weapons. As the reasons why terrorists are interested in CBRN weapons, there are such factors that raw materials are easy to obtain, manufacturing is not difficult, weapons are easy to transport, and indiscriminate and mass slaughter is possible when used. From the lessons from the Tokyo subway sarin event, the Tokyo Fire Department has been engaging in the following items: (1) strengthening knowledge and skills, (2) introduction of detection equipment, (3) construction and strengthening of decontamination system, (4) collaboration among firefighting - police - SDF - medical institutions, and (5) enhancing and strengthening organizational structure. Although protective measures vary depending on the type of chemical agent, biological agent, etc., it is important to prepare in daily life for detoxification, decontamination, evacuation, etc. (A.O.)

Myths and realities of female-perpetrated terrorism.

Science.gov (United States)

Jacques, Karen; Taylor, Paul J

2013-02-01

The authors examined the backgrounds and social experiences of female terrorists to test conflicting accounts of the etiology of this offending group. Data on 222 female terrorists and 269 male terrorists were examined across 8 variables: age at first involvement, educational achievement, employment status, immigration status, marital status, religious conversion, criminal activity, and activist connections. The majority of female terrorists were found to be single, young (terrorism, but they were more likely to have a higher education attainment, less likely to be employed, and less likely to have prior activist connections. The results clarify the myths and realities of female-perpetrated terrorism and suggest that the risk factors associated with female involvement are distinct from those associated with male involvement.

A study on the effect of exclusion period on the suicidal risk among the insured.

Science.gov (United States)

Yip, Paul S F; Chen, Feng

2014-06-01

An exclusion period (usually from 12 months to 2 years) is usually found in life insurance policies as a precautionary measure to prohibit people from insuring their lives with the intent to kill themselves shortly thereafter. Several studies have been conducted to investigate the effect of exclusion periods on the risk of suicide among the insured in the US and Australia. However, while Hong Kong has experienced an increase in the number of suicides among the insured, little is known about the dynamic between the exclusion period and suicide in Asia. Here we make use of death claims data from one of the major life insurance companies in Hong Kong to ascertain the impact of a 12-month exclusion period on suicide risk. We also use utility functions derived from economic theory to better understand individual choices regarding suicide among the insured. More specifically, we sought to determine whether there is a greater risk of suicide immediately following the 12-month exclusion period. We also examined whether the risk of suicide claims was higher than that of other non-suicidal claims. The study period for this investigation was from January 1, 1997 to December 31, 2011, during which time there were 1935 claims based on 1243 deaths. Of these, 197 were suicide-related claims for 106 suicide deaths. The mean number of life policies held by suicidal claimants and non-suicidal claimants was 1.6 and 1.4, respectively. The average/median size of the claims (total payment made on all policies held by the insured life) was HK$665,800/426,600 and HK$497,700/276,200 for suicidal and non-suicidal deaths, respectively. The policy lifetime of the claims, or the number of days from policy issuance to suicide occurrence, ranged from 38 to 7561 days, with a mean of 2209 days, a median of 1941 days, and a standard deviation of 1544 days. The peak density of suicide claims occurred on day 1039 of the policy. Our results revealed that suicide claims tend to occur earlier than other

Defining and Distinguishing Secular and Religious Terrorism

Directory of Open Access Journals (Sweden)

Heather S. Gregg

2014-04-01

Full Text Available Religious terrorism is typically characterised as acts of unrestrained, irrational and indiscriminant violence, thus offering few if any policy options for counterterrorism measures. This assumption about religious terrorism stems from two challenges in the literature: disproportionate attention to apocalyptic terrorism, and a lack of distinction between religious terrorism and its secular counterpart. This article, therefore, aims to do four things: define and differentiate religiously motivated terrorism from traditional terrorism; investigate three goals of religious terrorism (fomenting the apocalypse, creating a religious government, and establishing a religiously pure state; consider the role of leadership and target selection of religious terrorists; and, finally, suggest a range of counterterrorism strategies based on these observations.

7 CFR 2.44 - Administrator, Risk Management Agency and Manager, Federal Crop Insurance Corporation.

Science.gov (United States)

2010-01-01

... 7 Agriculture 1 2010-01-01 2010-01-01 false Administrator, Risk Management Agency and Manager... Secretary for Farm and Foreign Agricultural Services to the Administrator, Risk Management Agency, and... for the transaction of the business of the Federal Crop Insurance Corporation and the Risk Management...

A comparative study of the application of alternative risk transfer methods of insurance in South Africa and Zimbabwe

Directory of Open Access Journals (Sweden)

Athenia Bongani Sibindi

2015-08-01

Full Text Available Alternative risk transfer techniques represent the crown jewels in the risk management arena. This non-traditional method of insurance has gained prominence over the last few decades. Against this backdrop, the present study seeks to unravel the development of the alternative risk financing insurance segment within a developing country setting. The study specifically sets out to compare and contrast the ART insurance market segments of South Africa and Zimbabwe. The study is documents that the Zimbabwean market is at a nascent stage of development, whilst the South African market is fully developed. Notwithstanding the prospects for the development of this sector looks bright

Insurance of nuclear power stations

International Nuclear Information System (INIS)

Debaets, M.

1992-01-01

Electrical utility companies have invested large sums in the establishment of nuclear facilities. For this reason it is normal for these companies to attempt to protect their investments as much as possible. One of the methods of protection is recourse to insurance. For a variety of reasons traditional insurance markets are unable to function normally for a number of reasons including, the insufficient number of risks, an absence of meaningful accident statistics, the enormous sums involved and a lack of familiarity with nuclear risks on the part of insurers, resulting in a reluctance or even refusal to accept such risks. Insurers have, in response to requests for coverage from nuclear power station operators, established an alternative system of coverage - insurance through a system of insurance pools. Insurers in every country unite in a pool, providing a net capacity for every risk which is a capacity covered by their own funds, and consequently without reinsurance. All pools exchange capacity. The inconvenience of this system, for the operators in particular, is that it involves a monopolistic system in which there are consequently few possibilities for the negotiation of premiums and conditions of coverage. The system does not permit the establishment of reserves which could, over time, reduce the need for insurance on the part of nuclear power station operators. Thus the cost of nuclear insurance remains high. Alternatives to the poor system of insurance are explored in this article. (author)

Catastrophic risks and insurance

International Nuclear Information System (INIS)

Deprimoz, J.

1988-01-01

This short communication deals with compensation for nuclear damage and compensation for environmental pollution through industrial activities and compress both systems and their insurance coverage [fr

Imperfect Tests and Natural Insurance Monopolies

OpenAIRE

Emons, Winand

1997-01-01

This paper considers a housing insurance market in which buildings have different damage probabilities. Insurers use imperfect tests to find out about buildings’ damage types. The insurance market is a natural monopoly. If more than one insurer is active, high risk house owners continue to apply to insurers until they are eventually assigned to a low-risk class. First we show that the natural insurance monopoly need not be sustainable. Then we show that in the equilibrium industry structure t...

Sum Insured Determination for Cereal, Citrus and Vineyards in the Spanish Agricultural Insurance System

Science.gov (United States)

Lozano, C.; Tarquis, A. M.; Gómez-Barona, J. A.

2012-04-01

In general, insurance is a form of risk management used to hedge against a contingent loss. The conventional definition is the equitable transfer of a risk of loss from one entity to another in exchange for a premium or a guaranteed and quantifiable small loss to prevent a large and possibly devastating loss being agricultural insurance a special line of property insurance. Agriculture insurance, as actually are designed in the Spanish scenario, were established in 1978. At the macroeconomic insurance studies scale, it is necessary to know a basic element for the insurance actuarial components: sum insured. When a new risk assessment has to be evaluated in the insurance framework, it is essential to determinate venture capital in the total Spanish agriculture. In this study, three different crops (cereal, citrus and vineyards) cases are showed to determinate sum insured as they are representative of the cases found in the Spanish agriculture. Crop sum insured is calculated by the product of crop surface, unit surface production and crop price insured. In the cereal case, winter as spring cereal sowing, represents the highest Spanish crop surface, above to 6 millions of hectares (ha). Meanwhile, the four citrus species (oranges, mandarins, lemons and grapefruits) occupied an extension just over 275.000 ha. On the other hand, vineyard target to wine process shows almost one million of ha in Spain. A new method has been applied to estimate crop sum insured in these three cases. Under the maximum economic impact assumption, the maximum market price has been used to insurance each species. Depending on crop and reliability of the data base available, the insured area or insured production has been used in this estimation. When for a certain crop varieties or type of varieties show different insurance prices a geometric average was used as average insurance price for that particular crop. One extreme difficult case was vineyards, where differentiate prices based on

Insurance of risks as the instrument of protection of investments into high-rise construction

Science.gov (United States)

Vasilyeva, Elena; Okrepilov, Vladimir

2018-03-01

Insurance now is one of the important sectors for both world, and national financial systems. The mechanism of insurance of risks plays an essential role in the process of construction of high-rise buildings and as well as other unique objects. The author argues that insurance is categorically necessary because of the following reasons: huge scale and complexity of high-rise projects and great expenses, the use of unsafe sites for construction, great possible losses in case of the project, important role for the city infrastructure, numerous organizations, involved into the process of construction and maintenance, multypurpose use of the building. The features of insurance in the field of high-rise construction is also considered in the article. The prerequisites, confirming the loss occurrence are named.

The place of Political Risk Insurance in the political risk management strategy of multinational corporations

Directory of Open Access Journals (Sweden)

Violeta Iftinchi

2016-06-01

Full Text Available Confronted with a variety of political risks that affect their international activities, multinational corporations (MNCs can use Political Risk Insurance (PRI as a method to mitigate some of those risks. The aim of this article is to present the main characteristics of the PRI policies and participants, to highlight its benefits and to put forward three limitations that prevent MNCs in using PRI in their political risk management strategy (fluctuating capacity on the market, high premium rates and small compensation value. The recent trend in incorporating corporate social responsibility requirements as a pre-condition for providing PRI can contribute to lowering PRI premium rates.

Willingness to pay for agricultural risk insurance as a strategy to adapt climate change

NARCIS (Netherlands)

Mekonnen Melesse, Tigist

2017-01-01

Agricultural production is subject to high risk associated with environmental and agro-ecological conditions. Farmers continuously make decisions to mitigate the various adversities. This study evaluates farm households’ willingness to pay for agricultural risk insurance intervention introduced in

31 CFR 596.310 - Terrorism List Government.

Science.gov (United States)

2010-07-01

... 31 Money and Finance: Treasury 3 2010-07-01 2010-07-01 false Terrorism List Government. 596.310... OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS General Definitions § 596.310 Terrorism List Government. The term Terrorism List Government...

Index-Based Insurance Contracts to FOSTER Cooperation Between Agents Exposed to Uncorrelated Drought and Flooding Risks

Science.gov (United States)

Denaro, S.; Giuliani, M.; Castelletti, A.; Characklis, G. W.

2017-12-01

Worldwide, conflict over shared water resources is exacerbated by population growth, economic development and climate change. In multi-purpose water systems, stakeholders can face higher financial risks as a consequence of increased hydrological uncertainty and recurrent extreme events. In this context, a financial hedging tool able to bundle together the uncorrelated risks faced by different stakeholders may be an efficient solution to both foster cooperation and manage the financial losses associated with extreme events. In this work we explore the potential of risk diversification strategies involving index-based insurance joint contract solutions, to manage financial risk in a multi-purpose water system prone to both drought and flood risk. Risk diversification can allow for reduced insurance premiums in situations in which the bundled risks are entirely, or mostly, uncorrelated. Jointly covering flood and drought related risks from competing users in the same geographic area represents a novel application. The approach is demonstrated using a case study on Lake Maggiore, a regulated lake whose management is highly controversial due to numerous and competing human activities. In particular we focus on the ongoing conflict among the lakeshore population, affected by flood risk, and the downstream farmers' districts, facing drought related losses. Results are promising and indicate that bundling uncorrelated risks from competing users is beneficial to both promoting insurance premium affordability and facilitating collaboration schemes at the catchment scale.

Defining the key-parameters of insurance product in Islamic insurance

Directory of Open Access Journals (Sweden)

Galim Zaribzyanovich Vakhitov

2015-06-01

Full Text Available Objective to define the range of actuarial calculations in Islamic insurance to study the main differences of the traditional and Islamic insurance to define what changes in calculations entail the above differences. Methods mathematical modeling probabilistic analysis of insurance risks adaptation of methods of actuarial mathematics to the principles of Islamic insurance. Results the mathematical form of the takafulfund models is presented the distribution is analyzed of a random variable of the resulting insurance fund or the insurance company balance in a particular fixed insurance portfolio. Scientific novelty calculation are presented of the optimal tariff rate in takaful. Islamic insurance is an innovative area of insurance industry. Actuarial calculations that meet the Sharia rules are still being developed. The authors set the new tasks of actuarial calculations including the specified changes in the calculation of the optimal tariff rate imposed by the Islamic insurance principles. Practical value the results obtained can be used in the actuarial calculations of the Islamic insurance companies. nbsp

MARKETING OF INSURANCE PRODUCTS BY THE NATIONAL INSURANCE COMPANY LIMITED, RAJAPALAYAM

OpenAIRE

Dr. H. Christy Cynthia; Dr. T. Jebasheela; V. Maheswari

2017-01-01

Insurance is a way of reducing uncertainty of occurrence of an event. Insurance is an investment. Its basic purpose is to derive plans to counteract the financial consequences of unfavorable events. Insurance is a social device for eliminating or reducing the cost to society to certain types of risks. Insurance is essentially a co-operative endeavor. It is the function of the insurance to protect the few against the heavy financial impact of anticipated misfortunes by spreading losses among m...

Violation of human rights to combat terrorism.

OpenAIRE

2012-01-01

LL.B. No one definition of terrorism has gained universal acceptance. The lack of agreement on a definition of terrorism has been a major obstacle to meaningful international countermeasures to combat terrorism. There are 12 International Conventions related to terrorism and an explicit definition is still missing. Many states have tried to define terrorism and none of these definitions has been implemented, either by the United Nations or these states. There are many International Convent...

New trends in terrorism : the use of social media, cyber-terrorism, the role of open-source intelligence and the cases of rightwing extremism and lone wolf terrorism

OpenAIRE

Καραδήμα, Σοφία

2016-01-01

Terrorism has existed almost as long as humanity, and has appeared in various forms, creating new and evolving trends, making the definition of terrorism even more difficult to define. The purpose of this thesis is to examine the new trends in terrorism after the terrorist attacks of 9/11, as well as attempting to find the factors that facilitate the emergence and/or recurrence of trends in terrorism, by examining the related Literature, creating case studies and providing supp...

METHODICAL BASES OF MANAGEMENT OF INSURANCE PORTFOLIO

Directory of Open Access Journals (Sweden)

Serdechna Yulia

2018-01-01

Full Text Available Introduction. Despite the considerable arsenal of developments in the issues of assessing the management of the insurance portfolio remains unresolved. In order to detail, specify and further systematize the indicators for the indicated evaluation, the publications of scientists are analyzed. The purpose of the study is to analyze existing methods by which it is possible to formulate and manage the insurance portfolio in order to achieve its balance, which will contribute to ensuring the financial reliability of the insurance company. Results. The description of the essence of the concept of “management of insurance portfolio”, as the application of actuarial methods and techniques to the combination of various insurance risks offered for insurance or are already part of the insurance portfolio, allowing to adjust the size and structure of the portfolio in order to ensure its financial stability, achievement the maximum level of income of an insurance organization, preservation of the value of its equity and financial security of insurance liabilities. It is determined that the main methods by which the insurer’s insurance portfolio can be formed and managed is the selection of risks; reinsurance operations that ensure diversification of risks; formation and placement of insurance reserves, which form the financial basis of insurance activities. The method of managing an insurance portfolio, which can be both active and passive, is considered. Conclusions. It is determined that the insurance portfolio is the basis on which all the activities of the insurer are based and which determines its financial stability. The combination of methods and technologies applied to the insurance portfolio is a management method that can be both active and passive and has a number of specific methods through which the insurer’s insurance portfolio can be formed and managed. It is substantiated that each insurance company aims to form an efficient and

Stimulating household flood risk mitigation investments through insurance and subsidies: an Agent-Based Modelling approach

Science.gov (United States)

Haer, Toon; Botzen, Wouter; de Moel, Hans; Aerts, Jeroen

2015-04-01

In the period 1998-2009, floods triggered roughly 52 billion euro in insured economic losses making floods the most costly natural hazard in Europe. Climate change and socio/economic trends are expected to further aggrevate floods losses in many regions. Research shows that flood risk can be significantly reduced if households install protective measures, and that the implementation of such measures can be stimulated through flood insurance schemes and subsidies. However, the effectiveness of such incentives to stimulate implementation of loss-reducing measures greatly depends on the decision process of individuals and is hardly studied. In our study, we developed an Agent-Based Model that integrates flood damage models, insurance mechanisms, subsidies, and household behaviour models to assess the effectiveness of different economic tools on stimulating households to invest in loss-reducing measures. Since the effectiveness depends on the decision making process of individuals, the study compares different household decision models ranging from standard economic models, to economic models for decision making under risk, to more complex decision models integrating economic models and risk perceptions, opinion dynamics, and the influence of flood experience. The results show the effectiveness of incentives to stimulate investment in loss-reducing measures for different household behavior types, while assuming climate change scenarios. It shows how complex decision models can better reproduce observed real-world behaviour compared to traditional economic models. Furthermore, since flood events are included in the simulations, the results provide an analysis of the dynamics in insured and uninsured losses for households, the costs of reducing risk by implementing loss-reducing measures, the capacity of the insurance market, and the cost of government subsidies under different scenarios. The model has been applied to the City of Rotterdam in The Netherlands.

78 FR 16698 - Chemical Facility Anti-Terrorism Standards (CFATS) Chemical-Terrorism Vulnerability Information...

Science.gov (United States)

2013-03-18

... DEPARTMENT OF HOMELAND SECURITY [Docket No. DHS-2012-0057] Chemical Facility Anti-Terrorism Standards (CFATS) Chemical- Terrorism Vulnerability Information (CVI) AGENCY: National Protection and... notice is also soliciting comments concerning the Information Collection Request, Chemical Facility Anti...

Divorce and women's risk of health insurance loss.

Science.gov (United States)

Lavelle, Bridget; Smock, Pamela J

2012-01-01

This article bridges the literatures on the economic consequences of divorce for women with that on marital transitions and health by focusing on women's health insurance. Using a monthly calendar of marital status and health insurance coverage from 1,442 women in the Survey of Income and Program Participation, we examine how women's health insurance changes after divorce. Our estimates suggest that roughly 115,000 American women lose private health insurance annually in the months following divorce and that roughly 65,000 of these women become uninsured. The loss of insurance coverage we observe is not just a short-term disruption. Women's rates of insurance coverage remain depressed for more than two years after divorce. Insurance loss may compound the economic losses women experience after divorce and contribute to as well as compound previously documented health declines following divorce.

DIVORCE AND WOMEN'S RISK OF HEALTH INSURANCE LOSS*

Science.gov (United States)

Lavelle, Bridget; Smock, Pamela J.

2012-01-01

This article bridges the literatures on the economic consequences of divorce for women with that on marital transitions and health by focusing on women's health insurance. Using a monthly calendar of marital status and health insurance coverage from 1,442 women in the Survey of Income and Program Participation, we examine how women's health insurance changes after divorce. Our estimates suggest that roughly 115,000 American women lose private health insurance annually in the months following divorce and that roughly 65,000 of these women become uninsured. The loss of insurance coverage we observe is not just a short-term disruption. Women's rates of insurance coverage remain depressed for more than two years after divorce. Insurance loss may compound the economic losses women experience after divorce, and contribute to as well as compound previously documented health declines following divorce. PMID:23147653

Global initiatives to prevent nuclear terrorism

International Nuclear Information System (INIS)

2010-01-01

The fight against nuclear and radiological terrorism - someone to blow up a nuclear weapon or spread radioactive material as a 'dirty bomb' that act of terrorism - is one of the most serious threats to international security. The Global Initiative to prevent nuclear terrorism is a Norwegian-sponsored initiative that is aimed directly at combating terrorism by non-state actors. NRPA follow up Norwegian measures, including in Kazakhstan, and verifies that they are implemented and functioning as intended. (AG)

Understanding Terrorism from an Economic perspective

OpenAIRE

Haldar, Tanushree

2013-01-01

Terrorism has emerged as a major threat to the contemporary society. Nation States are reliant on their counter-terrorism laws for checking terrorism and deterring terrorists. To understand the effectiveness of these counter terrorism laws, it is important to first understand the behaviour of terrorists, so as to comprehend what actions can dissuade terrorist’s behaviour and decision to propagate violence. This paper will first look at behaviour of terrorist in decision making from an economi...

Entrepreneurial Moral Hazard in Income Insurance

NARCIS (Netherlands)

Ejrnaes, Mette; Hochguertel, Stefan

2008-01-01

We study risk behavior of Danish self-employed entrepreneurs, whose income risk may be driven by both exogenous factors and effort choice (moral hazard). Partial insurance is available through voluntary unemployment insurance (UI). Additional incentives to sign insurance contracts stem from a

Evaluation of risk from acts of terrorism :the adversary/defender model using belief and fuzzy sets.

Energy Technology Data Exchange (ETDEWEB)

Darby, John L.

2006-09-01

Risk from an act of terrorism is a combination of the likelihood of an attack, the likelihood of success of the attack, and the consequences of the attack. The considerable epistemic uncertainty in each of these three factors can be addressed using the belief/plausibility measure of uncertainty from the Dempster/Shafer theory of evidence. The adversary determines the likelihood of the attack. The success of the attack and the consequences of the attack are determined by the security system and mitigation measures put in place by the defender. This report documents a process for evaluating risk of terrorist acts using an adversary/defender model with belief/plausibility as the measure of uncertainty. Also, the adversary model is a linguistic model that applies belief/plausibility to fuzzy sets used in an approximate reasoning rule base.

Probabilistic insurance

OpenAIRE

Wakker, P.P.; Thaler, R.H.; Tversky, A.

1997-01-01

textabstractProbabilistic insurance is an insurance policy involving a small probability that the consumer will not be reimbursed. Survey data suggest that people dislike probabilistic insurance and demand more than a 20% reduction in the premium to compensate for a 1% default risk. While these preferences are intuitively appealing they are difficult to reconcile with expected utility theory. Under highly plausible assumptions about the utility function, willingness to pay for probabilistic i...

Making decisions about liability and insurance a special issue of the journal of risk and uncertainty

CERN Document Server

Kunreuther, Howard

1993-01-01

Two related trends have created novel challenges for managing risk in the United States. The first trend is a series of dramatic changes in liability law as tort law has expanded to assign liability to defendants for reasons other than negligence. The unpredictability of future costs induced by changes in tort law may be partly responsible for the second major trend known as the `liability crisis' - the disappearance of liability protection in markets for particularly unpredictable risks. This book examines decisions people make about insurance and liability. An understanding of such decision making may help explain why the insurance crisis resulted from the new interpretations of tort law and what to do about it. The articles cover three kinds of decisions: consumer decisions to purchase insurance; insurer decisions about coverage they offer; and the decisions of the public about the liability rules they prefer, which are reflected in legislation and regulation. For each of these three kinds of decisions, no...

Gender Imbalance and Terrorism in Developing Countries.

Science.gov (United States)

Younas, Javed; Sandler, Todd

2017-03-01

This article investigates whether gender imbalance may be conducive to domestic terrorism in developing countries. A female-dominated society may not provide sufficient administration, law, or order to limit domestic terrorism, especially since societies in developing countries primarily turn to males for administration, policing, and paramilitary forces. Other economic considerations support female imbalance resulting in grievance-generated terrorism. Because male dominance may also be linked to terrorism, empirical tests are ultimately needed to support our prediction. Based on panel data for 128 developing countries for 1975 to 2011, we find that female gender imbalance results in more total and domestic terrorist attacks. This female gender imbalance does not affect transnational terrorism in developing countries or domestic and transnational terrorism in developed countries. Further tests show that gender imbalance affects terrorism only when bureaucratic institutions are weak. Many robustness tests support our results.

Terrorism and financial supervision

NARCIS (Netherlands)

Krans, Anatoli van der

2005-01-01

This article presents an analysis of how legislators on international, European and national level combat the financing of terrorism. The central question in this article is whether European regulations concerning the prevention of money laundering and the financing of terrorism, are effective,

Risk distribution across multiple health insurance funds in rural Tanzania

DEFF Research Database (Denmark)

Chomi, Eunice Nahyuha; Mujinja, Phares Gamba; Enemark, Ulrika

2014-01-01

cross-subsidisation across the funds. This paper analyses whether the risk distribution varies across the Community Health Fund (CHF) and National Health Insurance Fund (NHIF) in two districts in Tanzania. Specifically we aim to 1) identify risk factors associated with increased utilisation of health...... services and 2) compare the distribution of identified risk factors among the CHF, NHIF and non-member households. METHODS: Data was collected from a survey of 695 households. A multivariate logisitic regression model was used to identify risk factors for increased health care utilisation. Chi-square tests...... were performed to test whether the distribution of identified risk factors varied across the CHF, NHIF and non-member households. RESULTS: There was a higher concentration of identified risk factors among CHF households compared to those of the NHIF. Non-member households have a similar wealth status...

Strengthening insurance partnerships in the face of climate change - Insights from an agent-based model of flood insurance in the UK.

Science.gov (United States)

Crick, Florence; Jenkins, Katie; Surminski, Swenja

2018-04-25

Multisectoral partnerships are increasingly cited as a mechanism to deliver and improve disaster risk management. Yet, partnerships are not a panacea and more research is required to understand the role that they can play in disaster risk management and particularly disaster risk reduction. This paper investigates how partnerships can incentivise flood risk reduction by focusing on the UK public-private partnership on flood insurance. Developing the right flood insurance arrangements to incentivise flood risk reduction and adaptation to climate change is a key challenge. In the face of rising flood risks due to climate change and socio-economic development insurance partnerships can no longer afford to focus only on the risk transfer function. However, while expectations of the insurance industry have traditionally been high when it comes to flood risk management, the insurance industry alone will not provide the solution to the challenge of rising risks. The case of flood insurance in the UK illustrates this: even national government and industry together cannot fully address these risks and other actors need to be involved to create strong incentives for risk reduction. Using an agent-based model focused on surface water flood risk in London we analyse how other partners could strengthen the insurance partnership by reducing flood risk and thus helping to maintain affordable insurance premiums. Our findings are relevant for wider discussions on the potential of insurance schemes to incentivise flood risk management and climate adaptation in the UK and also internationally. Copyright © 2018. Published by Elsevier B.V.

Environmental pollution and liability insurance

International Nuclear Information System (INIS)

Boediker, T.

1980-01-01

By the declared will of the legislative bodies to give effect to the polluter pays principle on all levels those have to pay the costs of removing impairments of environmental media that are responsible for its occurence. Thus environmental pollution becomes a considerable financial risk for the polluter. Against this risk they try to protect themselves by the corresponding precautionary measures, e.g. by insurance. The insurance industry is consequently requested to meet this new demand. The legal bases are followed by the description of the insurance relationship under the aspect of the theory of risks, which follows, based on the basic model of decision theory, the objective of a quantitative representation of the situation of the decision. In the last chapter the author deals with the financial security for the risks of a third party liability insurance of environmental pollution as it is offered today in the Federal Republic of Germany. The elaboration of the existing financial security is then compared with the legal conditions of liability. In doing this the author describes cases not covered by financial security and its definition by comparison with findings of risk theory. As a result it becomes obvious that numerous exclusions of risks could quite good be included in the financial security and that the argument of the impossibility to insure often put forward by the insurers to justify the exclusion of risks can neither theoretically nor practically be uphold. (orig./HSCH) [de

A Fear Management Approach to Counter-Terrorism

Directory of Open Access Journals (Sweden)

Tinka Veldhuis

2012-02-01

Full Text Available Spreading fear is the essence of terrorism. Terrorists exploit fear by terrorising the target audience into concessions. Understanding how feelings of fear influence the way people feel, think and act is therefore an important starting point to explore how individuals and societies can learn how to cope with fear of terrorism. In this Policy Brief, Research Fellows Prof. Dr. Edwin Bakker and Dr. Tinka Veldhuis explore the dynamics of fear in response to terrorism, and emphasise the importance of integrating initiatives to manage fear of terrorism and reduce its negative consequences into overarching counter-terrorism strategies. It argues that societies can benefit greatly from promoting resilience and a fear management approach to counter-terrorism.

Incentives for Ex Ante wildfire risk mitigation in the wildland-urban interface: The relationship between contingent wildfire insurance and fuel management subsidies

OpenAIRE

Lankoande, Mariam D.; Yoder, Jonathan K.; Wandschneider, Philip R.

2006-01-01

Contingent wildfire insurance and fuel management cost-sharing programs are becoming more prevalent in western states. This paper develops a model to examine the incentive effects of these two mechanisms for private investment in wildfire risk mitigation. The model shows that contingent insurance contracts strengthen incentives for risk mitigation relative to pooled contracts and subsidies induce more risk mitigation effort by reducing margin private costs of mitigation. With pooled insurance...

Competition between health maintenance organizations and nonintegrated health insurance companies in health insurance markets.

Science.gov (United States)

Baranes, Edmond; Bardey, David

2015-12-01

This article examines a model of competition between two types of health insurer: Health Maintenance Organizations (HMOs) and nonintegrated insurers. HMOs vertically integrate health care providers and pay them at a competitive price, while nonintegrated health insurers work as indemnity plans and pay the health care providers freely chosen by policyholders at a wholesale price. Such difference is referred to as an input price effect which, at first glance, favors HMOs. Moreover, we assume that policyholders place a positive value on the provider diversity supplied by their health insurance plan and that this value increases with the probability of disease. Due to the restricted choice of health care providers in HMOs a risk segmentation occurs: policyholders who choose nonintegrated health insurers are characterized by higher risk, which also tends to favor HMOs. Our equilibrium analysis reveals that the equilibrium allocation only depends on the number of HMOs in the case of exclusivity contracts between HMOs and providers. Surprisingly, our model shows that the interplay between risk segmentation and input price effects may generate ambiguous results. More precisely, we reveal that vertical integration in health insurance markets may decrease health insurers' premiums.

INSURANCE AND THE CORPORATE COST OF CAPITAL

Directory of Open Access Journals (Sweden)

Monika Wieczorek-Kosmala

2012-04-01

Full Text Available The purpose of the paper is to provide some support to the thesis that insurance may reduce the cost of capital in a company by influencing both the cost of capital components and the need for rising capital. The problem is here perceived from two perspectives – the classical concept related to the weighted average cost of capital (WACC and a novel concept related to the risk-based capital structure model with the total average cost of capital (TACC. The paper explains the idea of insurance as a retrospective (post-loss risk financing tool and the risk transfer mechanism upon it. As the risk financing tool insurance reduces the need for the balance-sheet capital in a company and thus the financial distress costs. Also, insurance may reduce the level of operating risk and thus influences the required returns of the capital providers. These observations allow emphasising the impact of insurance on the WACC. However, according to the novel concept of the risk-based capital structure, insurance (as a risk financing tool represents an off-balance sheet capital component. As a consequence, it extends the volume of total capital. The presented conceptual model, based on the TACC concept, indicates that large volume of insurance (the insurance sum and its relatively low cost (the insurance premium gives the possibility to the significant reduction of the cost of capital on average. The concluding remarks discuss some dilemmas over the utility of the TACC concept.

Female terrorism : a review

NARCIS (Netherlands)

Jacques, Karen; Taylor, Paul J.

2009-01-01

The sharp growth in the number of publications examining female involvement in terrorism has produced a valuable but un-integrated body of knowledge spread across many disciplines. In this paper, we bring together 54 publications on female terrorism and use qualitative and quantitative analyses to

Introduction to Teaching About Terrorism.

Science.gov (United States)

Totten, Sam

1986-01-01

Provides an historical and conceptual framework for understanding contemporary terrorism. Includes quotations from government officials, syndicated columnists, and scholars regarding terrorism and its effects on society. (JDH)

Gender Imbalance and Terrorism in Developing Countries

Science.gov (United States)

Younas, Javed

2016-01-01

This article investigates whether gender imbalance may be conducive to domestic terrorism in developing countries. A female-dominated society may not provide sufficient administration, law, or order to limit domestic terrorism, especially since societies in developing countries primarily turn to males for administration, policing, and paramilitary forces. Other economic considerations support female imbalance resulting in grievance-generated terrorism. Because male dominance may also be linked to terrorism, empirical tests are ultimately needed to support our prediction. Based on panel data for 128 developing countries for 1975 to 2011, we find that female gender imbalance results in more total and domestic terrorist attacks. This female gender imbalance does not affect transnational terrorism in developing countries or domestic and transnational terrorism in developed countries. Further tests show that gender imbalance affects terrorism only when bureaucratic institutions are weak. Many robustness tests support our results. PMID:28232755

Entrepreneurial Moral Hazard in Income Insurance

DEFF Research Database (Denmark)

Ejrnæs, Mette; Hochguertel, Stefan

We study risk behavior of Danish self-employed entrepreneurs, whose income risk may be driven by both exogenous factors and effort choice (moral hazard). Partial insurance is available through voluntary unemployment insurance (UI). Additional incentives to sign insurance contracts stem from a UI......-embedded, government-subsidized early retirement (ER) program, giving benefits that are unrelated to business risk. Indeed, we argue that the self-employeds' incentives to insure themselves stem from the ER plan rather than from the UI cover. We show how to use a policy reform to identify moral hazard in observed...

The normalisation of terror: the response of Israel's stock market to long periods of terrorism.

Science.gov (United States)

Peleg, Kobi; Regens, James L; Gunter, James T; Jaffe, Dena H

2011-01-01

Man-made disasters such as acts of terrorism may affect a society's resiliency and sensitivity to prolonged physical and psychological stress. The Israeli Tel Aviv stock market TA-100 Index was used as an indicator of reactivity to suicide terror bombings. After accounting for factors such as world market changes and attack severity and intensity, the analysis reveals that although Israel's financial base remained sensitive to each act of terror across the entire period of the Second Intifada (2000-06), sustained psychological resilience was indicated with no apparent overall market shift. In other words, we saw a 'normalisation of terror' following an extended period of continued suicide bombings. The results suggest that investors responded to less transitory global market forces, indicating sustained resilience and long-term market confidence. Future studies directly measuring investor expectations and reactions to man-made disasters, such as terrorism, are warranted. © 2011 The Author(s). Disasters © Overseas Development Institute, 2011.

Re-insurance in the Swiss health insurance market: Fit, power, and balance.

Science.gov (United States)

Schmid, Christian P R; Beck, Konstantin

2016-07-01

Risk equalization mechanisms mitigate insurers' incentives to practice risk selection. On the other hand, incentives to limit healthcare spending can be distorted by risk equalization, particularly when risk equalization payments depend on realized costs instead of expected costs. In addition, cost based risk equalization mechanisms may incentivize health insurers to distort the allocation of resources among different services. The incentives to practice risk selection, to limit healthcare spending, and to distort the allocation of resources can be measured by fit, power, and balance, respectively. We apply these three measures to evaluate the risk adjustment mechanism in Switzerland. Our results suggest that it performs very well in terms of power but rather poorly in terms of fit. The latter indicates that risk selection might be a severe problem. We show that re-insurance can reduce this problem while power remains on a high level. In addition, we provide evidence that the Swiss risk equalization mechanism does not lead to imbalances across different services. Copyright © 2016 Elsevier Ireland Ltd. All rights reserved.

Terrorism: some philosophical and ethical dilemmas

OpenAIRE

Stojanov, Trajce; Unsal, Zeynep

2017-01-01

Philosophers weren`t thinking a lot about terrorism before the terrorist attacks in the United States on 11 September 2001. Or even when they were thinking the main concern was how to deal with terrorism. But after this attack terrorism was high on the philosophical agenda mainly manifested as an ethical problem. The key concern was: can terrorism be morally justified? That is the issue we are dealing in this paper too. But, the answer of this question largely depends on the treatment of t...

How to fight terrorism? Political and strategic aspects.

Science.gov (United States)

Vad, Erich

2018-04-01

"Fighting terrorism is like eating soup with a fork" (Shimon Peres). Peres's quote symbolically captures the key problem of countering terrorism. 9/11 proved to be a hallmark in the global perception of modern terrorism. The following questions form the framework of the present essay: What is the essence of modern terrorism? How did it develop during the past two decades? Who are the key players within the terror framework? What are the root causes for global terrorism? How are we to deal appropriately with the global phenomenon of terrorism? Are there any solutions (short-, medium-, long-term) to terrorism? If yes, where do we have to look for them? The underlying essay provides a strategic overview of antiterrorism policy that is based on the author's years-long experience as a high-level expert and advisor within the security policy framework. For this reason, citations are expressly not included. The key target audience comprises laypersons interested in the phenomenon of global terrorism and its social interplay.

Alternative health insurance schemes

DEFF Research Database (Denmark)

Keiding, Hans; Hansen, Bodil O.

2002-01-01

In this paper, we present a simple model of health insurance with asymmetric information, where we compare two alternative ways of organizing the insurance market. Either as a competitive insurance market, where some risks remain uninsured, or as a compulsory scheme, where however, the level...... competitive insurance; this situation turns out to be at least as good as either of the alternatives...

Nuclear energy and insurance

International Nuclear Information System (INIS)

Dow, J.C.

1989-01-01

It was the risk of contamination of ships from the Pacific atmospheric atomic bomb tests in the 1940's that seems first to have set insurers thinking that a limited amount of cover would be a practical possibility if not a commercially-attractive proposition. One Chapter of this book traces the early, hesitant steps towards the evolution of ''nuclear insurance'', as it is usually called; a term of convenience rather than exactitude because it seems to suggest an entirely new branch of insurance with a status of its own like that of Marine, Life or Motor insurance. Insurance in the field of nuclear energy is more correctly regarded as the application of the usual, well-established forms of cover to unusual kinds of industrial plant, materials and liabilities, characterised by the peculiar dangers of radioactivity which have no parallel among the common hazards of industry and commerce. It had, and still has, the feature that individual insurance underwriters are none too keen to look upon nuclear risks as a potential source of good business and profit. Only by joining together in Syndicates or Pools have the members of the national insurance markets been able to make proper provision for nuclear risks; only by close international collaboration among the national Pools have the insurers of the world been able to assemble adequate capacity - though still, even after thirty years, not sufficient to provide complete coverage for a large nuclear installation. (author)

Terrorism as Genocide: Killing with “Intent”

Directory of Open Access Journals (Sweden)

Ashlie Perry

2012-07-01

Full Text Available It is plausible that terrorism can manifest itself as a form of genocide. Using Raphael Lemkin’s definition of genocide and the UN Genocide Convention’s definition of genocide, non-state and state terrorism are assessed as a form of genocide. Commonalities found in the definitions of both genocide and terrorism supports the argument. The psychology of terrorism and Lemkin’s psychology of genocide describe similar motivations of perpetrators. The September 11th attacks and the U.S. invasion of Iraq are used as case studies to illustrate that terrorism can result in genocide or genocidal acts. Framing acts of terrorism as genocide allows for prosecution in international courts and brings a new perspective to the concept of killing with intent.

NATO Advanced Study Institute on Insurance and Risk Theory

CERN Document Server

Vylder, F; Haezendonck, J

1986-01-01

Canadian financial institutions have been in rapid change in the past five years. In response to these changes, the Department of Finance issued a discussion paper: The Regulation of Canadian Financial Institutions, in April 1985, and the government intends to introduce legislation in the fall. This paper studi.es the combinantion of financial institutions from the viewpoint of ruin probability. In risk theory developed to describe insurance companies [1,2,3,4,5J, the ruin probability of a company with initial reserve (capital) u is 6 1 -:;-7;;f3 u 1jJ(u) = H6 e H6 (1) Here,we assume that claims arrive as a Poisson process, and the claim amount is distributed as exponential distribution with expectation liS. 6 is the loading, i.e., premium charged is (1+6) times expected claims. Financial institutions are treated as "insurance companies": the difference between interest charged and interest paid is regarded as premiums, loan defaults are treated as claims.

Alert but less alarmed: a pooled analysis of terrorism threat perception in Australia

Directory of Open Access Journals (Sweden)

Barr Margo

2011-10-01

Full Text Available Abstract Background Previous Australian research has highlighted disparities in community perceptions of the threat posed by terrorism. A study with a large sample size is needed to examine reported concerns and anticipated responses of community sub-groups and to determine their consistency with existing Australian and international findings. Methods Representative samples of New South Wales (NSW adults completed terrorism perception questions as part of computer assisted telephone interviews (CATI in 2007 (N = 2081 and 2010 (N = 2038. Responses were weighted against the NSW population. Data sets from the two surveys were pooled and multivariate multilevel analyses conducted to identify health and socio-demographic factors associated with higher perceived risk of terrorism and evacuation response intentions, and to examine changes over time. Results In comparison with 2007, Australians in 2010 were significantly more likely to believe that a terrorist attack would occur in Australia (Adjusted Odd Ratios (AOR = 1.24, 95%CI:1.06-1.45 but felt less concerned that they would be directly affected by such an incident (AOR = 0.65, 95%CI:0.55-0.75. Higher perceived risk of terrorism and related changes in living were associated with middle age, female gender, lower education and higher reported psychological distress. Australians of migrant background reported significantly lower likelihood of terrorism (AOR = 0.52, 95%CI:0.39-0.70 but significantly higher concern that they would be personally affected by such an incident (AOR = 1.57, 95%CI:1.21-2.04 and having made changes in the way they live due to this threat (AOR = 2.47, 95%CI:1.88-3.25. Willingness to evacuate homes and public places in response to potential incidents increased significantly between 2007 and 2010 (AOR = 1.53, 95%CI:1.33-1.76. Conclusion While an increased proportion of Australians believe that the national threat of terrorism remains high, concern about being personally affected

Atomic risk insurance. Risk policy, safety production and expertise in Germany and the USA 1945 - 1986; Die Versicherung der Atomgefahr. Risikopolitik, Sicherheitsproduktion und Expertise in der Bundesrepublik Deutschland und den USA 1945-1986

Energy Technology Data Exchange (ETDEWEB)

Wehner, Christoph [Dokumentations- und Forschungsstelle der Sozialversicherungstraeger, Bochum (Germany)

2017-07-01

The book covers the following chapters: (I) Between threat and promise: Political change and the corporate perception, the burden of the atomic bomb, promise of nuclear energy risk criticism in the pre-ecological phase, nuclear risk as investment restraint; (II) Risk policy at the insurability limit: hazard knowledge, safety production and insurance expertise in the German nuclear policy (1955-1962); (III) Risk policy beyond the catastrophe, insurability interpretation, concepts and conflicts (1957-1968); (IV) Scandalization of risk policy: safety production, confidence and expertise in the nuclear controversial debate (1969 - 1979); (V) Nuclear risk policy and the challenge of the ''risk society'' (1975-1986); (VI) From safety production to hazard probe: atomic energy And the change of insurance.

Rational and mechanics of a peak risk variance swap for a property insurance portfolio

OpenAIRE

Zvezdov, Ivelin

2012-01-01

In this technical report we explore the motivation, structuring and detailed mechanics of a variance swap contract adapted for a property insurance portfolio. We structure, price and test sensitivities of the swap contract using real event historical and modeled natural catastrophe loss data. Our key motivation is to propose an element of financial engineering innovation to insurance portfolio risk management to allow for constructing hedging strategies that may not be possible to achieve w...

Connecting Capital and Catastrophe in a Modeled World - How re/insurance and public science interact to manage risk for societal benefit

Science.gov (United States)

Douglas, R.

2010-12-01

Society, at local and global scales, seeks improved ways of managing the impact and sharing the costs of extreme natural events across populations via public and private mechanisms. Concerns over potential climate change and climate variability are amplifying the importance of these questions among public policy, business and regulatory communities. Through its financial obligations to exposed populations, the international insurance and reinsurance sector is directly affected by the frequency, severity and impact of extreme events. In many jurisdictions insurance contracts are regulated to tolerate the maximum probable loss events which are expected at 1 in 200 year return periods. This risk tolerance requirement renders re/insurers to undertake distinctive risk analysis among financial sector institutions. Natural catastrophe risk is a major component of re/insurer risk at the 1:200 year return period and a significant driver of the minimum capital requirements imposed on re/insurers. Historic claims records are insufficient on their own to evaluate potential losses at these return periods and over the last twenty years a significant sub-sector of the re/insurance industry has emerged known as catastrophe risk modelling. This has brought a progress and influential approach in applying science to gain a great handle of the expected losses to portfolios by developing increasingly robust analysis of hazards, exposures, vulnerabilities and impacts. As a result of these innovations the re/insurance sector has become more resilient to natural catastrophes. In recent years there has been an accelerated and deepening interaction between the re/insurance sector and public science across natural hazards risk research. The medium of modelling is providing a common vehicle for science and industry communities to collaborate and new supply chains are emerging from blue sky public science, through to applied research and operation modelling. Increasingly both sides are sharing

Sleep Terrors in Twins

OpenAIRE

J Gordon Millichap

2008-01-01

In an attempt to clarify the genetic and environmental causes of sleep terrors in childhood, reasearchers in Canada followed 390 pairs of monozygotic and dizygotic twins by assessing the frequency of sleep terrors at 18 and 30 months of age using a questionnaire administered to the biological mothers.

Weather based risks and insurances for crop production in Belgium

Science.gov (United States)

Gobin, Anne

2014-05-01

Extreme weather events such as late frosts, droughts, heat waves and rain storms can have devastating effects on cropping systems. Damages due to extreme events are strongly dependent on crop type, crop stage, soil type and soil conditions. The perspective of rising risk-exposure is exacerbated further by limited aid received for agricultural damage, an overall reduction of direct income support to farmers and projected intensification of weather extremes with climate change. According to both the agriculture and finance sectors, a risk assessment of extreme weather events and their impact on cropping systems is needed. The impact of extreme weather events particularly during the sensitive periods of the farming calendar requires a modelling approach to capture the mixture of non-linear interactions between the crop, its environment and the occurrence of the meteorological event. The risk of soil moisture deficit increases towards harvesting, such that drought stress occurs in spring and summer. Conversely, waterlogging occurs mostly during early spring and autumn. Risks of temperature stress appear during winter and spring for chilling and during summer for heat. Since crop development is driven by thermal time and photoperiod, the regional crop model REGCROP (Gobin, 2010) enabled to examine the likely frequency, magnitude and impacts of frost, drought, heat stress and waterlogging in relation to the cropping season and crop sensitive stages. The risk profiles were subsequently confronted with yields, yield losses and insurance claims for different crops. Physically based crop models such as REGCROP assist in understanding the links between different factors causing crop damage as demonstrated for cropping systems in Belgium. Extreme weather events have already precipitated contraction of insurance coverage in some markets (e.g. hail insurance), and the process can be expected to continue if the losses or damages from such events increase in the future. Climate

Natural disasters and the challenge of extreme events: risk management from an insurance perspective

Science.gov (United States)

Smolka, Anselm

2006-08-01

Loss statistics for natural disasters demonstrate, also after correction for inflation, a dramatic increase of the loss burden since 1950. This increase is driven by a concentration of population and values in urban areas, the development of highly exposed coastal and valley regions, the complexity of modern societies and technologies and probably, also by the beginning consequences of global warming. This process will continue unless remedial action will be taken. Managing the risk from natural disasters starts with identification of the hazards. The next step is the evaluation of the risk, where risk is a function of hazard, exposed values or human lives and the vulnerability of the exposed objects. Probabilistic computer models have been developed for the proper assessment of risks since the late 1980s. The final steps are controlling and financing future losses. Natural disaster insurance plays a key role in this context, but also private parties and governments have to share a part of the risk. A main responsibility of governments is to formulate regulations for building construction and land use. The insurance sector and the state have to act together in order to create incentives for building and business owners to take loss prevention measures. A further challenge for the insurance sector is to transfer a portion of the risk to the capital markets, and to serve better the needs of the poor. Catastrophe bonds and microinsurance are the answer to such challenges. The mechanisms described above have been developed to cope with well-known disasters like earthquakes, windstorms and floods. They can be applied, in principle, also to less well investigated and less frequent extreme disasters: submarine slides, great volcanic eruptions, meteorite impacts and tsunamis which may arise from all these hazards. But there is an urgent need to improve the state of knowledge on these more exotic hazards in order to reduce the high uncertainty in actual risk evaluation to

Insurance, Public Assistance, and Household Flood Risk Reduction: A Comparative Study of Austria, England, and Romania.

Science.gov (United States)

Hanger, Susanne; Linnerooth-Bayer, Joanne; Surminski, Swenja; Nenciu-Posner, Cristina; Lorant, Anna; Ionescu, Radu; Patt, Anthony

2018-04-01

In light of increasing losses from floods, many researchers and policymakers are looking for ways to encourage flood risk reduction among communities, business, and households. In this study, we investigate risk-reduction behavior at the household level in three European Union Member States with fundamentally different insurance and compensation schemes. We try to understand if and how insurance and public assistance influence private risk-reduction behavior. Data were collected using a telephone survey (n = 1,849) of household decisionmakers in flood-prone areas. We show that insurance overall is positively associated with private risk-reduction behavior. Warranties, premium discounts, and information provision with respect to risk reduction may be an explanation for this positive relationship in the case of structural measures. Public incentives for risk-reduction measures by means of financial and in-kind support, and particularly through the provision of information, are also associated with enhancing risk reduction. In this study, public compensation is not negatively associated with private risk-reduction behavior. This does not disprove such a relationship, but the negative effect may be mitigated by factors related to respondents' capacity to implement measures or social norms that were not included in the analysis. The data suggest that large-scale flood protection infrastructure creates a sense of security that is associated with a lower level of preparedness. Across the board there is ample room to improve both public and private policies to provide effective incentives for household-level risk reduction. © 2017 The Authors Risk Analysis published by Wiley Periodicals, Inc. on behalf of Society for Risk Analysis.

Determinants of health insurance and hospitalization

Directory of Open Access Journals (Sweden)

Tadashi Yamada

2014-12-01

Full Text Available Our paper empirically examines how the decision to purchase private insurance and hospitalization are made based on household income, socio-demographic factors, and private health insurance factors in both Japan and the USA. Using these two data-sets, we found some similarities and dissimilarities between Japan and the United States. As income of households rises, households have a positive effect on purchasing health insurance as a normal good. Another similarity between the two countries is seen in the income effect on risk of hospitalization, which is negative for both Japanese and US cases. For dissimilarity, the insurance premium effect on risk of hospitalization is positive for the Japanese case, while negative for the US case. Since the Japanese insurance data had variables such as payments per day of hospitalization if household gets hospitalized, insurance payments upon death of an insured person, and annuity payments at maturity, we tested to see if these characteristics affect the risk of hospitalization for households; we do not eliminate a possibility of adverse selection. For the US pure health issuance characteristics, an increase in premium of health insurance policies cause individuals to substitute more health capital investment which causes lower risk of hospitalization.

[Increased financial risks for health insurers: a challenge for providers of mental health care in the Netherlands].

Science.gov (United States)

Daansen, P J; van Schilt, J

2014-01-01

As from 2014 Dutch health insurance companies will bear the full financial risk for their clients in mental health care. Over the next years the existing risk settlement shared between insurance companies will gradually be brought to a close. Municipalities and the Ministry of Justice are already responsible for or will soon become responsible for financing health care for adolescents, patients with severe psychiatric disorders and forensic psychiatric patients. As a result, the health insurance companies are beginning to impose ever stricter conditions regarding the care 'product' they are 'buying'. To study the possible consequences, for mental health care institutions, of the increased risk to be borne by health care insurers. Use was made of relevant marketing literature and literature relating to mental health care. Studies of Dutch mental health care literature indicate that in the future the purchasing procedure will no longer consider the immediate treatment outcome as the sole performance indicator but will also take into account additional factors such as long-term improvements in patients' health, customer satisfaction and degree of patient participation, patient empowerment and autonomy. In formulating the details of their health products and business strategies, health care providers will now have to take into account not only the efficacy of the treatment they provide but also the purchasing policy and strategy of the health insurance companies.

Policy lessons from comparing mortality from two global forces: international terrorism and tobacco

Directory of Open Access Journals (Sweden)

Wilson Nick

2005-12-01

Full Text Available Abstract Background The aim of this study was to compare the mortality burdens from two global impacts on mortality: international terrorism and the major cause of preventable death in developed countries – tobacco use. We also sought to examine the similarities and differences between these two causes of mortality so as to better inform the policy responses directed at prevention. Methods Data on deaths from international terrorism were obtained from a US State Department database for 1994–2003. Estimates for tobacco-attributable deaths were based on Peto et al 2003. The countries were 37 developed and East European countries. Results and discussion The collective annualized mortality burden from tobacco was approximately 5700 times that of international terrorism. The ratio of annual tobacco to international terrorism deaths was lowest for the United States at 1700 times, followed by Russia at 12,900 times. The tobacco death burden in all these countries was equivalent to the impact of an 11 September type terrorist attack every 14 hours. Different perceptions of risk may contribute to the relative lack of a policy response to tobacco mortality, despite its relatively greater scale. The lack is also despite tobacco control having a stronger evidence base for the prevention measures used. Conclusion This comparison highlights the way risk perception may determine different policy responses to global forces causing mortality. Nevertheless, the large mortality differential between international terrorism and tobacco use has policy implications for informing the rational use of resources to prevent premature death.

Who pays the bill: insuring against the risks from low level nuclear waste disposal

International Nuclear Information System (INIS)

Cohen, L.

1981-01-01

Long-range financial liability for low-level waste (LLW) activities is not currently assured. Part of the problem with finding an acceptable solution to liability has been a tendency to lump all long-term financial commitments, both risky and anticipated, together. It is suggested that only risks arising from unforeseen technical problems require special federal policies. Other long-term costs are more efficiently handled by traditional private insurance. Special policies are needed, however, for the unforeseen risks. The analysis concludes that state insurance of operators with federal reinsurance may be the most reasonable concept. Reinsurance levels should be set to balance federal information requirements, relative control of the three main parties over outcomes, and solvency requirements

Definitions of Cyber Terrorism

NARCIS (Netherlands)

Luiijf, H.A.M.

2014-01-01

The phrase cyber terror appeared for the first time in the mid-eighties. According to several sources, Barry C. Collin, a senior person research fellow of the Institute for Security and Intelligence in California, defined cyber terror at that time as “the convergence of cybernetics and terrorism”—an

Sleep Terrors in Twins

Directory of Open Access Journals (Sweden)

J Gordon Millichap

2008-12-01

Full Text Available In an attempt to clarify the genetic and environmental causes of sleep terrors in childhood, reasearchers in Canada followed 390 pairs of monozygotic and dizygotic twins by assessing the frequency of sleep terrors at 18 and 30 months of age using a questionnaire administered to the biological mothers.

46 CFR 308.303 - Amounts insured under interim binder.

Science.gov (United States)

2010-10-01

... 308.303 Shipping MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION EMERGENCY OPERATIONS WAR RISK INSURANCE Second Seamen's War Risk Insurance § 308.303 Amounts insured under interim binder. The amounts insured are the amounts specified in the Second Seamen's War Risk Policy (1955) or as modified by shipping...

6 CFR 27.400 - Chemical-terrorism vulnerability information.

Science.gov (United States)

2010-01-01

... 6 Domestic Security 1 2010-01-01 2010-01-01 false Chemical-terrorism vulnerability information. 27... FACILITY ANTI-TERRORISM STANDARDS Other § 27.400 Chemical-terrorism vulnerability information. (a... that constitute Chemical-terrorism Vulnerability Information (CVI), as defined in § 27.400(b). The...

School Insurance.

Science.gov (United States)

1964

The importance of insurance in the school budget is the theme of this comprehensive bulletin on the practices and policies for Texas school districts. Also considered is the development of desirable school board policies in purchasing insurance and operating the program. Areas of discussion are: risks to be covered, amount of coverage, values,…

Nuclear terrorism

International Nuclear Information System (INIS)

Watson, C.

2005-01-01

This article is aimed at those professional scientists and engineers who believe that issues of international peace and security are too important to be left to the politicians. Nuclear Terrorism is a hostile act (or a threat of such an act) involving nuclear materials (fissile or radioactive) performed by a terrorist, a term which covers a wide range of individuals. What they all have in common is that, for some reason they have become motivated to hurt or destroy sections of society which they have come to regard as the enemy; their motivation varies enormously. They also vary enormously in the extent and nature of their technical/scientific education. There are 'PhD terrorists' and 'Peasant terrorists', and they differ greatly in the threat that they represent, and the steps which can appropriately be taken to counter it. The most serious threat comes from the potential ability of terrorists to steal or manufacture nuclear weapons of mass destruction (e.g. capable of causing thousands of deaths). Unless the underlying causes of terrorism can be quickly removed, we have a duty to mankind to make terrorist access to such weapons, and to the nuclear materials which are their essential ingredients, as difficult as possible. Improvements in the arrangements for denying unauthorised access to radioactive material should be made such that the protective measures made are proportionate to the number of Curies at risk and the likelihood of a terrorist initiative. The preventative measures, sadly, need to take account of the possibility that the terrorist will use lethal force to access the material. (author)

Inflation Insurance

OpenAIRE

Zvi Bodie

1989-01-01

A contract to insure $1 against inflation is equivalent to a European call option on the consumer price index. When there is no deductible this call option is equivalent to a forward contract on the CPI. Its price is the difference between the prices of a zero coupon real bond and a zero coupon nominal bond, both free of default risk. Provided that the risk-free real rate of interest is positive, the price of such an inflation insurance policy first rises and then falls with time to maturity....

Defense against terroristic hazards and risk by building planning law

International Nuclear Information System (INIS)

Hopkins, Richard

2012-01-01

The book on defense against terroristic hazards and risk by building planning law includes the following issues: Introduction: civil engineering and safety. Risk, hazards and urban planning: historical and actual examples for the constructional danger prevention, terroristic threat and urban planning. Risk, hazards and terrorism: sociology and risk, law and risk, terrorism - risk or hazard? Answer to uncertainty - risk prevention, catastrophe law as link. Risk, hazard, terrorism and the public building and regional planning law: regional planning law as point of origin, building law and terrorism, possibility of control by the legal building regulations.

Terrorism in South Africa.

Science.gov (United States)

MacFarlane, Campbell

2003-01-01

The Republic of South Africa lies at the southern tip of the African continent. The population encompasses a variety of races, ethnic groups, religions, and cultural identities. The country has had a turbulent history from early tribal conflicts, colonialisation, the apartheid period, and post-apartheid readjustment. Modern terrorism developed mainly during the apartheid period, both by activities of the state and by the liberation movements that continued to the time of the first democratic elections in 1994, which saw South Africa evolve into a fully representative democratic state with equal rights for all. Since 1994, terrorist acts have been criminal-based, evolving in the Cape Town area to political acts, largely laid at the feet of a predominantly Muslim organisation, People against Gangsterism and Drugs, a vigilant organisation allegedly infiltrated by Muslim fundamentalists. Along with this, has been terrorist activities, mainly bombings by disaffected members of white, right-wing groups. In the apartheid era, a Draconian series of laws was enacted to suppress liberation activities. After 1994, most of these were repealed and new legislation was enacted, particularly after the events of 11 September 2001; this legislation allows the government to act against terrorism within the constraints of a democratic system. Disaster management in South Africa has been largely local authority-based, with input from provincial authorities and Civil Defence. After 1994, attempts were made to improve this situation, and national direction was provided. After 11 September 2001, activity was increased and the Disaster Management Act 2002 was brought into effect. This standardized disaster management system at national, provincial, and local levels, also facilites risk assessment and limitation as well as disaster mitigation. The potential still exists for terrorism, mainly from right-wing and Muslim fundamentalist groups, but the new legislation should stimulate disaster

Body and Terror: Women’s Bodies as Victims and Perpetrators of Terror

Directory of Open Access Journals (Sweden)

Parvin Sultana

2014-07-01

Full Text Available Bodies are vulnerable because they are intrinsically linked to death. Bodies are social and they are embedded with meaning. They cannot be extracted from their specific contexts. The nation is also often equated with body politic. As a result individual bodies become the site of security/ insecurity depending on the social location of bodies. Within this discourse, this article tries to locate the bodies of women. It will look at the bodies of women as victims of terror as well as perpetrators of terror. It will try to understand if in these differentiated roles, women are able to break away from stereotypes or are still caught in heteronormative narratives. Keywords: Body, Suicide Bombers, Victims, Ethnic Conflict, Terrorism.

Child development in the context of disaster, war, and terrorism: pathways of risk and resilience.

Science.gov (United States)

Masten, Ann S; Narayan, Angela J

2012-01-01

This review highlights progress over the past decade in research on the effects of mass trauma experiences on children and youth, focusing on natural disasters, war, and terrorism. Conceptual advances are reviewed in terms of prevailing risk and resilience frameworks that guide basic and translational research. Recent evidence on common components of these models is evaluated, including dose effects, mediators and moderators, and the individual or contextual differences that predict risk or resilience. New research horizons with profound implications for health and well-being are discussed, particularly in relation to plausible models for biological embedding of extreme stress. Strong consistencies are noted in this literature, suggesting guidelines for disaster preparedness and response. At the same time, there is a notable shortage of evidence on effective interventions for child and youth victims. Practical and theory-informative research on strategies to protect children and youth victims and promote their resilience is a global priority.

Child Development in the Context of Disaster, War, and Terrorism: Pathways of Risk and Resilience

Science.gov (United States)

Masten, Ann S.; Narayan, Angela J.

2018-01-01

This review highlights progress over the past decade in research on the effects of mass trauma experiences on children and youth, focusing on natural disasters, war, and terrorism. Conceptual advances are reviewed in terms of prevailing risk and resilience frameworks that guide basic and translational research. Recent evidence on common components of these models is evaluated, including dose effects, mediators and moderators, and the individual or contextual differences that predict risk or resilience. New research horizons with profound implications for health and well-being are discussed, particularly in relation to plausible models for biological embedding of extreme stress. Strong consistencies are noted in this literature, suggesting guidelines for disaster preparedness and response. At the same time, there is a notable shortage of evidence on effective interventions for child and youth victims. Practical and theory-informative research on strategies to protect children and youth victims and promote their resilience is a global priority. PMID:21943168

Terrorism and disarmament

International Nuclear Information System (INIS)

2001-01-01

In addressing the General Assembly at the opening of its debate on international terrorism (1 to 5 October 2001), the Secretary-General warned that a single attack involving a nuclear or biological weapon could kill millions. While the world was unable to prevent the II September attacks, there is much we can do to help prevent future terrorist acts carried out with weapons of mass destruction, he emphasized, calling for redoubled efforts to implement key treaties relating to those arms, closer cooperation among international organizations dealing with them, and tighter national legislation covering the exports of goods and technologies used in their production. Many representatives from all countries and all regions echoed the Secretary-General's sentiment during the debate. The general conclusion was that all countries could be affected in some form or another by such a fearful proposition, and all countries must work together to prevent it. To gain a greater understanding of the increased threat of international terrorism today, the Department for Disarmament Affairs sponsored a panel of high-level experts to discuss terrorism and its relationship to disarmament. Two leading experts from the Centre for the Study of Terrorism and Political Violence at the University of St. Andrews in Scotland, Professor Wilkinson and Dr. Gunaratna, put the attacks on the United States in an historical perspective, present some of the repercussions of the unprecedented scope of the attacks and give their views on how international institutions and agreements can assist in combating future acts of this kind. Mr Vladimir P Salov of the Russian Federation addresses the suppression of financing of terrorism and how Russia works towards that end. The IAEA has been trying for almost 50 years to safeguard nuclear materials from diversions to nuclear-weapon users and, in recent years, working more intensively on physical protection of nuclear material. Dr Nilsson's presentation

The enigma of lone wolf terrorism: an assessment

NARCIS (Netherlands)

Spaaij, R.

2010-01-01

Lone wolf terrorism remains an ambiguous and enigmatic phenomenon. The boundaries of lone wolf terrorism are fuzzy and arbitrary. This article aims to define and analyze the main features and patterns of lone wolf terrorism in fifteen countries. Lone wolf terrorism is shown to be more prevalent in

Defining and Distinguishing Traditional and Religious Terrorism

OpenAIRE

Gregg, Heather S.

2014-01-01

The article of record may be found at: http://dx.doi.org/10.1080/23296151.2016.1239978 thus offering few if any policy options for counterterrorism measures. This assumption about religious terrorism stems from two challenges in the literature: disproportionate attention to apocalyptic terrorism, and a lack of distinction between religious terrorism and its secular counterpart. This article, therefore, aims to do four things: define and differentiate religiously motivated terrorism from tr...

Mass Media and Terrorism: Deconstructing the Relationship

OpenAIRE

Prayudi, Prayudi

2008-01-01

Issue of terrorism came to surface in this early twenty first century through a number ofacts violence that have killed hundreds and injured thousands of people. At the same time, theseevents have been dominated the mass media contents. Principally, mass media and issue ofterrorism are inseparable. This paper examines the relationship between mass media and terrorism.It is done through the deconstruction of the concept of terrorism and how terrorism isunderstood as a communicational process. ...

Global Risk of Nuclear Terrorism

Directory of Open Access Journals (Sweden)

Emily Diez

2010-01-01

Full Text Available The emergence of nuclear terrorism, a threat that President Obama called "the gravest danger we face," has signaled a paradigm shift in international security. Since the collapse of the Soviet Union, sensitive nuclear technologies and materials have become increasingly available. Globalization and the inadequate enforcement of treaties and export controls have allowed the proliferation of nuclear weapons materials. Today, international terrorist organizations seek to employ weapons of mass destruction (WMD as a means to influence national policies around the world. AlQaida spokesman Suleiman Abu Gheith declared that in order to balance the injustices that have been inflicted on the Muslim population worldwide, al-Qaida's new objective is "to kill 4 million Americans–2 million of them children." As political scientist Graham Allison notes, this could be achieved with either 1,334 attacks similar in magnitude to those of 9/11, or one nuclear bomb.Building a nuclear program is an arduous task that requires tacit knowledge, the recruitment of nuclear scientists, engineers, and machinists, and the resources and time to obtain nuclear materials and components. While it is unlikely that terrorist organizations have the capacity to develop full-fledged programs in the near term, terrorist development and acquisition of nuclear weapons remains a long-term threat that requires international action.

48 CFR 28.308 - Self-insurance.

Science.gov (United States)

2010-10-01

... REQUIREMENTS BONDS AND INSURANCE Insurance 28.308 Self-insurance. (a) When it is anticipated that 50 percent or... risks, limits of coverage, assignments of safety and loss control, and legal service responsibilities... projected average loss; and (10) A disclosure of all captive insurance company and re-insurance agreements...

European insurance scheme to cover geological risk related to geothermal operations

Energy Technology Data Exchange (ETDEWEB)

Tiberi, U [European Community, General Directorate XVII, ALTERNER Program, Bruxelles (Belgium); Demange, J [BRGM, Orleans (France)

1997-12-01

The development of geothermal energy can contribute significantly to the growth of NRE (new and renewable energies that are non-nuclear and non-combustible) within the European Community and within Europe as a whole. However, the `mining risk` related to this type of operation still constitutes a major obstacle to its development. Operators find it difficult to raise the necessary financing without a guarantee against the risk of failure during the drilling stage. Standard insurance companies will not cover this type of risk, due to its very nature. We must thus therefore find a specific solution. As a result of the oil crises during the 1970s, the French Government decided promote the use of renewable energies in France. The support provided to these energies, or at least to geothermal energy, was to set up a scheme whereby the resource is guaranteed. Thus the operator, by subscribing to the scheme, benefits from a guarantee of the resource. The insurance works at two level: - in the first place, it covers the mining risk during the drilling stage, i.e. should the resource prove to be insufficient, whether in discharge or temperature, for an economically viable operation, then the totality of the costs are reimbursed, apart form the premium and any government subsidy that might have been received. - A second level of guarantee covers the risk of change in the resource`s parameters over a period of 15 years (a study is in progress to consider the possibility of extending this period to 25 years). (orig.)

Irrational Rationality of Terrorism

Directory of Open Access Journals (Sweden)

Robert Nalbandov

2013-12-01

Full Text Available The present article deals with the ontological problem of applying the rational choice frameworks to the study of terrorism. It testing the application of the rational choice to the “old” (before the end of the Cold War and the “new” (after the end of the Cold War terrorisms. It starts with analyzing the fundamentals of rationality and applies it at two levels: the individual (actors and group (collective via two outlooks: tactical (short-term and strategic (long-term. The main argument of the article is that while the “old” terrorism can be explained by the rational choice theory its “new” version represents a substantial departure from rationality.

Family Risk and Resilience in the Context of War and Terrorism

Science.gov (United States)

MacDermid Wadsworth, Shelley M.

2010-01-01

War and terrorism are exerting increasing force on world affairs, with growing implications for families and the scholars who study them. In this review, I consider the implications of mass violence for families, with particular emphasis on families with members serving in the U.S. military and families around the world who live where mass…

Terrorism, Hegel, Honneth

Directory of Open Access Journals (Sweden)

Sinkwan Cheng

2015-07-01

Full Text Available My essay begins by analyzing how Hegel and Honneth’s theory of recognition would seem to lend support to insurgent terrorists’ struggle for the right to self-determination. Insurgent terrorism often looks like a concretization of what Honneth calls the moral protest of the oppressed launched against the dominating powers. Insurgent terrorism also bears affinity to the politics of recognition in the sense that it challenges the legitimacy and authority of the forces owned by the state, and seeks to gain public recognition instead for the legitimacy of their own cause. Precisely because what matters uppermost to terrorists is the gaining of recognition for their cause as just, terrorists are eager to seize the mass media as a means of spreading their ideas. My essay will end, however, by pointing out major differences between insurgent terrorism on the one hand, and Hegel and Honneth on the other.

Terrorism in Colombia.

Science.gov (United States)

Paredes Zapata, Gabriel Darío

2003-01-01

Colombia is a poor country that has been plagued by ongoing violence for more than 120 years. During the 1940s, subversive terrorist groups emerged in rural areas of the country when criminal groups came under the influence of Communism, and were later transformed into contemporary groups, such as the Ejercito de Liberacion Nacional (ELN) or National Liberation Army and Fuerzas Armadas Revolucionares de Colombia (FARC) or Revolutionary Armed Forces of Colombia). Paramilitary terrorist groups emerged in response to subversive groups and were later transformed into contemporary groups, such as the Autodefensas Unidas de Colombia (AUC) or United Self-Defense Forces of Colombia. Terrorism has placed an enormous burden on modern Colombia. From 1995 to 2002, 9,435 people were killed by terrorism-related events, of which 5,864 were killed by subversive terrorist activities and 3,571 were killed by paramilitary terrorist activities. In 2002, at least nineteen attacks produced 10 or more casualties, of which 18 were bombings. In 2002, terrorists killed at least 12 mayors, 71 legislators, and internally displaced 300,000 persons from their homes. Since terrorist groups in Colombia are typically supported by drug manufacturing and trafficking, it has been difficult at times to distinguish violence due to terrorism from violence due to illicit drug trafficking. Terrorism has also had a major adverse effect on the economy, with restricted travel, loss of economic resources, and lack of economic investment. In addition to political, military, and commercial targets, terrorists have specifically targeted healthcare infrastructure and personnel. At the national and local levels, much emergency planning and preparedness has taken place for terrorism-related events. The Centro Regulador de Urgencias (CRU) or Emergency Regulation Center in Bogota plays a major role in coordinating local prehospital and hospital emergency response in the capital city and the national level where

Review and expectations of terror attack emergency rescue

Directory of Open Access Journals (Sweden)

De-wen WANG

2012-03-01

Full Text Available Ten years of anti-terror struggle since the 9/11 event has indicated adequately that terrorism is a global problem and international danger. Likewise, anti-terror emergency rescue is also an important task which will influence the safety and benefit of every country all over the world. This paper reviews the main progress and result of international anti-terror struggle in the last ten years, and also introduces the new characteristic of the international anti-terror activity. Besides that, this paper also brings forward the further consideration about the anti-terror emergency medical rescue and the researches remaining to be carried out. The latter includes: (1 to further perfect the high-efficient medical rescue command organization; (2 to further perfect the emergency medical rescue prearranged scheme; (3 to further perfect the construction of rescue system and rescue base after various types of terror attack; (4 to further promote the anti-terror consciousness in the public, and pay more attention to the prevention and investigation of the psychological disaster; (5 to further carry out the basic investigation on emergency medical rescue after various terror attack injuries (for example the types and characteristics of new injuries, pathophysiology and prevention and treatment of stress-psychological effect induced by terror attack, new high-efficient medical rescue measure and equipments, and so on.

Nuclear insurance

International Nuclear Information System (INIS)

Anon.

1993-01-01

The German Nuclear Power Plant Insurance (DKVG) Association was able to increase its net capacity in property insurance to 637 million marks in 1993 (1992: 589 million). The reinsurance capacity of the other pools included, the total amount covered now amounts to 2 billion marks in property incurance and 200 million marks in liability incurance. As in the year before the pool can reckon with a stable gross premium yield around 175 million marks. The revival of the US dollar has played a decisive role in this development. In 1993 in the domestic market, the DKVG offered policies for 22 types of property risk and 43 types to third-party risk, operating with a gross target premium of 65 million marks and 16 million marks, respectively. The DKVG also participated in 540 foreign insurance contracts. (orig./HSCH) [de

Childhood reactions to terrorism-induced trauma: a review of the past 10 years.

Science.gov (United States)

Fremont, Wanda P

2004-04-01

To summarize the literature about the clinical presentation and treatment interventions of childhood reactions to terrorism-induced trauma. The literature on children's responses to terrorist activities was reviewed. Over the past 10 years, more research has emerged on the subject of terrorism in children. Many of the effects of terrorism-induced trauma are similar to the effects of natural and man-made trauma. Children's responses include acute stress disorder, posttraumatic stress disorder, anxiety, depression, regressive behaviors, separation problems, sleep difficulties, and behavioral problems. However, several aspects of terrorist attacks result in unique stressors and reactions and pose specific challenges for treatment. The unpredictable, indefinite threat of terrorist events, the profound effect on adults and communities, and the effect of extensive terrorist-related media coverage exacerbates underlying anxieties and contributes to a continuous state of stress and anxiety. Intervention strategies include early community-based interventions, screening of children at risk, triage and referral, and trauma-loss-focused treatment programs. Advances have been made in the research of childhood reactions to terrorism-induced trauma. Further research is needed to identify children at risk and to determine the long-term impact on children's development. Although the preliminary results of interventions developed to help children are promising, outcome data have not been examined, and further research is needed to evaluate their effectiveness.

46 CFR 309.4 - Maximum amount insured.

Science.gov (United States)

2010-10-01

... MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION EMERGENCY OPERATIONS VALUES FOR WAR RISK INSURANCE... Administration will provide war risk hull insurance for damage to or actual or constructive total loss of the... Administration with respect to insurance attaching during the effective period of such valuation under the...

Implementing Automotive Telematics for Fleet Insurance

Directory of Open Access Journals (Sweden)

Marika Azzopardi

2013-12-01

Full Text Available The advantages of Usage-Based Insurance for automotive covers over conventional rating methods have been discussed in literature for over four decades. Notwithstanding their adoption in insurance markets has been slow. This paper seeks to establish the viability of introducing fleet Telematics-Based Insurance by investigating the perceptions of insurance operators, tracking service providers and corporate fleet owners. At its core, the study involves a SWOT-analysis to appraise Telematics-Based Insurance against conventional premium rating systems. Twenty five key stakeholders in Malta, a country with an insurance industry that represents others in microcosm, were interviewed to develop our analysis. We assert that local insurers have interests in such insurance schemes as enhanced fleet management and monitoring translate into an improved insurance risk. The findings presented here have implications for all stakeholders as we argue that telematics enhance fleet management, TBI improves risk management for insurers and adoption of this technology is dependent on telematics providers increasing the perceived control by insurers over managing this technology.

Latin America: Terrorism Issues

National Research Council Canada - National Science Library

Sullivan, Mark P

2005-01-01

.... In its annual report on worldwide terrorism, the State Department highlights threats in Colombia, Peru, and the tri-border region of Argentina, Brazil, and Paraguay. The State Department also has designated four terrorist groups (three in Colombia and one in Peru) as Foreign Terrorist Organizations, and Cuba has been listed as a state sponsor of terrorism since 1982.

The Dynamics of Market Insurance, Insurable Assets, and Wealth Accumulation

OpenAIRE

Koeniger, Winfried

2002-01-01

We analyze dynamic interactions between market insurance, the stock of insurable assets and liquid wealth accumulation in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households can insure. Since the model does not have a closed form solution we first provide an analytical approximation for the case in which households own abundant liquid wealth. It turns out that precautionary motives still matter because of fluctuations of the p...

Trade Credit Insurance and Asymmetric Information Problem

Directory of Open Access Journals (Sweden)

Sokolovska Olena

2017-03-01

Full Text Available The presence of different risk factors in international trade gives evidence of the necessity of support in gaps that may affect exporters’ activity. To maximize the trade volumes and in the same time to minimize the exporters’ risks the stakeholders use trade credit insurance. The paper provides analysis of conceptual background of the trade credit insurance in the world. We analyzed briefly the problems, arising in insurance markets due to asymmetric information, such as adverse selection and moral hazard. Also we discuss the main stages of development of trade credit insurance in countries worldwide. Using comparative and graphical analysis we provide a brief evaluation of the dynamics of claims and recoveries for different forms of trade credit insurance. We found that the claims related to the commercial risk for medium and long trade credits in recent years exceed the recoveries, while with the political risk the reverse trend holds. And we originally consider these findings in terms of information asymmetry in the trade credit insurance differentiated by type of risk.

Optimal Control for Insurers with a Jump-diffusion Risk Pro cess

Institute of Scientific and Technical Information of China (English)

WU Kun; XIAO Jian-wu; LUO Rong-hua

2015-01-01

In this paper, the optimal XL-reinsurance of an insurer with jump-diffusion risk process is studied. With the assumptions that the risk process is a compound Possion pro-cess perturbed by a standard Brownian motion and the reinsurance premium is calculated according to the variance principle, the implicit expression of the priority and corresponding value function when the utility function is exponential are obtained. At last, the value func-tion is argued, the properties of the priority about parameters are discussed and numerical results of the priority for various claim-size distributions are shown.

Bringing the State Back into Terrorism Studies

OpenAIRE

Blakeley, Ruth

2007-01-01

Orthodox terrorism studies tend to focus on the activities of illiberal nonstate actors against the liberal democratic states in the North. It thus excludes state terrorism, which is one of a number of repressive tools that great powers from the North have used extensively in the global South in\\ud the service of foreign policy objectives. I establish the reasons for the absence of state terrorism from orthodox accounts of terrorism and argue that critical–normative approaches could help to o...