This article examines the impact of the passage of the Second and Third Life and Non-Life European Insurance Directives on insurance firms located in 14 European Union countries, Norway, and Switzerland. The third directives have a wealth effect on the European insurance market, while the second directives do not. The Third Life Directive resulted in a wealth increase for the European insurance...

Assume that there are k types of insurance contracts in an insurance company. The ith related claims are denoted by {Xij , j ≥ 1}, i = 1, . . . , k. In this paper we investigate large deviations for both partial sums S(k; n1, . . . , nk) = ∑ki=1 ∑ni j=1 Xij and random sums S(k; t) = ∑ki=1 ∑Ni(t) j=1 Xij , whereNi(t), i = 1, . . . , k, are counting processes for the claim number. The obtained re...

Many statutory solvency requirements, e.g. the system prescribed by the EU, do not take into account the distribution of the investments. In practice, however, an adequate solvency margin of an insurance company depends strongly on the investment portfolio. This paper describes how the sufficient level of the solvency margin can be estimated. In this, only the margin depending on the company’s ...

We propose a model for an insurance loss index and the claims process of a single insurance company holding a fraction of the total number of contracts that captures both ordinary losses and losses due to catastrophes. In this model we price a catastrophe derivative by the method of utility indifference pricing. The associated stochastic optimization problem is treated by techniques for piecewi...

The 1990s witnessed an explosion of cross-border mergers and acquisitions as companies in mature markets sought to increase their potential for growth through expansion into developing markets. This paper presents a broad overview of the actuarial considerations of insurance company transactions in developing countries, identifying both theoretical and practical issues that need to be addressed...

This paper considers the effect of tort liability reforms on medical malpractice and general liability insurance markets. The primary reforms analyzed were damages caps and other liability reforms. These reforms decreased premiums, reduced losses, and improved the profitability of insurance companies based on evidence using detailed individual company by state data from the National Association...

This paper describes a stochastic programming model that was developed for asset liability management of a Finnish pension insurance company. In many respects the model resembles those presented in the literature, but it has some unique features stemming from the statutory restrictions for Finnish pension insurance companies. Particular attention is paid to modeling the stochastic factors, nume...

This paper investigates competition between health insurance companies under different financing regulations. We consider two alternatives advanced in recent German health care reform discussions: competition by contribution rates (health contributions) and by fees (health premia). We find that contribution rate competition yields lower company profits and higher consumer welfare than premia co...

Statistically significant correlations between Google search data and financial markets exist 1. The methods used can be used to attempt to find correlations between any time series data and Google3 searches. Since insurance premiums are based on mortality rates, if one can predict mortality rates with a point or interval estimator, an insurance company can re-evaluate a policy every year and u...

Figure 1: Example insurance scenario Consider a commercial Web site for an insurance company (Figure 1). The web site surfaces Web pages that allow customers, agents, employees and partners to interact with applications. The site also exposes a Web service interface using WSDL [WSDL] to document interfaces and a WS-Interoperability [WSI] binding for access from partner systems. This scenario in...