This paper uses Soft Systems Methodology (SSM) to formulate strategies prevent moral hazard acts in agricultural insurance Indonesia. Agricultural takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the that can be performed minimize practice programs are: developing capacity of human resources, improving field communication, enforcing penalties, institutional stre...

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. 1. Introduction. Portfolio insurance, introduced by Leland ...

s: This paper attempts to understand the outcomes when each party of the insurance contracts simultaneously has superior information to the other. We decompose the risk of a policyholder into a general risk and a specific risk. We assume that policyholders have superior information about specific risks while insurers have superior information about general risks. When each risk can be either hi...

We analyze the impact of factors related to corporate governance (i.e., compensation, monitoring, and ownership structure) on risk taking in the insurance industry. We measure asset, product, and financial risk in insurance companies and employ a structural equation model in which corporate governance is modeled as latent factor. Based on this model, we present empirical evidence on the link be...

Today’s insurance rates are often only a rough approximation of the actual risks they insure, categorizing insurance takers into coarse classes based on long-term demographic facts such as age or address. This not only negatively affects the care with which the insured good is treated, but also often implies a significant amount of cross-financing from low-risk customers to high-risk customer. ...

because iran’s economy is based on oil industry, related issues in this area are very important. one of the important issues in this context is the low participation of oil industry in the total portfolio of the insurance industry that suggests numerous challenges in the interaction between the two. in addition, the imposition of international sanctions against oil projects and oil shipping ins...

Risk transfer, including insurance, is widely recognized as a tool for increasing financial resilience to severe weather events such as floods. The application of this mechanism varies widely across countries, with a range of different types and schemes in operation. While most of the analytical focus has so far been on those markets that have a long tradition of insurance, there is still a cle...

This paper extends the research about the impact of an increase in background risk from cases with one decision variable to those with two decision variables. We apply the results of Eeckhoudt and Kimball (1992) to examine the comparative statics of an increase in background risk on demand for loss reduction that depends on market insurance and self-insurance together. We find that individuals ...