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...

Using a representative sample of Italian investors, we estimate the risk associated with pension benefits by eliciting for each individual the subjective distribution of the replacement rate as a summary indicator of social security wealth. We find substantial heterogeneity of pension risk and show that it is consistently related to observable features in the pension system that have different ...

the foreign direct investment is a growth and development factor. today majority of countries will attract foreign capitals. but multinational companies perform investment in the political stability conditions. the political risk is dissuasive factor for foreign direct investment. in such qualification can suitable “political risk insurance” and help to developing countries for attract foreign ...

Crop insurance is an appropriate way to overcome the risk in agricultural production sector and increase farmer’s peace of mind for their future income. In the agricultural sector of Kohgiluyeh and Boyer Ahmad, the risk of production is high due to the substantial losses of crops and other diseases and so is the income risk. Since most local farmers have low incomes and livelihoods, natural dis...

This study contains a comprehensive scientific analysis of modern problems of risk management in the sphere of state economic security provision using professional liability insurance. The elements of the mechanism for providing economic security are defined, namely: subjects, objects, and instruments of influence. It is stipulated that insurance is the means to provide state economic security....

background: existence or non-existence of adverse selection in insurance market is one of the important cases that have always been considered by insurers. adverse selection is one of the consequences of asymmetric information. theory of adverse selection states that high-risk individuals demand the insurance service more than low risk individuals do. methods: the presence of adverse selection ...

The main challenge for any insurer/reinsurer has proved to be underwriting major refinery/Petrochemical risk. Insurers have already considered process risk management measures while accepting and evaluating the risks all over the world. Erstwhile petrochemical tariff was adopting experiencing methodology as basis for premium calculation in Iran. In the present de-tariff scenario decisions will ...

Automobile hull insurance has attracted much attention due to the high rate of vehicle applications in daily lives. Since purchasing these policies is optional in Iran and their premium rates are set competitively, a competition is formed among the insurance companies for attracting low risk drivers. However, most of the insurers still use comparative rates and pay no or less attention to the f...