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Journal Of Actuarial Practice - Volume 13 (2006) - Contents And Masthead

Journal of Actuarial Practice (1993-2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, Actuarial Frameworks ○ …

Spatial Distribution Of Frequency And Severity Of Water Claims In California, Gurbhag Singh, Max Tang, Don Mcneill, Lyn Hunstad

Journal of Actuarial Practice (1993-2006)

We examine the frequency and severity of water loss claims for homeowners insurance across the state of California for the experience years 2000, 2001, and 2002. The spatial distribution patterns of frequencies and severities are mapped and analyzed at the zip code level. The maps reveal the pockets of high frequencies and severities. The information provided in this paper will assist actuaries and policy makers in their quest to set accurate rates for homeowners insurance.

Pricing Insurance Policies With A Distribution-Free Financial Pricing Model, Min-Ming Wen

Journal of Actuarial Practice (1993-2006)

The highly skewed and heavy tailed distributions used to model insurance losses (claims) raise a concern about the validity of the applications of the capital asset pricing model (CAPM) to insurance pricing when market risks are essential. This paper provides an alternative pricing model, called the Rubinstein-Leland model, which can be used to price insurance contracts. The Rubinstein-Leland model has a distribution-free feature that can fully capture the asymmetry embedded in insurance losses. Thus, this model is better able to derive fair prices for insurance policies than is the CAPM.

Bivariate Archimedean Copula Models For Censored Data In Non-Life Insurance, Michel Denuit, Oana Purcaru, Ingrid Van Keilegom

Journal of Actuarial Practice (1993-2006)

We describe a methodology based on Archimedean copulas for analyzing nonlife insurance data with censoring present. Specifically, we propose a graphical selection procedure for the nonparametric estimation of the generator. An actual loss-ALAE data set is used for the numerical illustrations and for comparisons of our approach to a few others.

Virtuous Leadership: A Theoretical Model And Research Agenda, Craig L. Pearce, David A. Waldman, Mihaly Csikszentmihalyi

Department of Management: Faculty Publications

In this manuscript we attempt to shed light on the concept of virtuous leadership. We first attempt to identify the nature of virtuous leadership. Next, we specify two potential antecedents of virtuous vertical leadership. Specifically, we identify the personal characteristic of responsibility disposition as well as environmental cues as potential predictors of subsequent virtuous leadership. Moreover. we articulate how virtuous vertical leadership might result in virtuous shared leadership. We also demonstrate how both vertical and shared virtuous leadership can act as key factors in the creation of organizational learning. Importantly. we specify several important research implications of our theoretical model. …

Entrepreneurial Self-Efficacy In Central Asian Transition Economies: Quantitative And Qualitative Analyses, Fred Luthans, Elina Sharlezdvna Ibrayeva

Department of Management: Faculty Publications

In both quantitative and qualitative field studies, the self-efficacy of entrepreneurs in the transition economies of Kazakhstan and Kyrgyzstan is examined. Using a social cognitive framework, the complex interaction among these entrepreneurs’ (N=133) personal characteristics, environment, and self-efficacy is analyzed by structural equation modeling. Their self-efficacy was found to have a direct and mediating impact on performance. Another sample of entrepreneurs from these countries (N=239) qualitatively assessed what they actually do in their day-to-day activities. The findings from these two studies contribute to better understanding and have implications for successful entrepreneurial practice in countries undergoing the difficult process of transition …

The Importance Of Vertical And Shared Leadership Within New Venture Top Management Teams: Implications For The Performance Of Startups, Michael D. Ensley, Keith M. Hmieleski, Craig L. Pearce

Department of Management: Faculty Publications

The current study investigated the relative influence of vertical versus shared leadership within new venture top management teams on the performance of startups using two different samples. Vertical leadership stems from an appointed or formal leader of a team (e.g., the CEO), whereas shared leadership is a form of distributed leadership stemming from within a team. Transformational, transactional, empowering, and directive dimensions of both vertical and shared leadership were examined. New venture performance was considered in terms of revenue growth and employee growth. The first sample was comprised of 66 top management teams of firms drawn from Inc. Magazine’s …

The Impact Of Efficacy On Work Attitudes Across Cultures, Fred Luthans, Weichun Zhu, Bruce Avolio

Department of Management: Faculty Publications

To answer the call for more cross-cultural research, this study analyzed the efficacy and work attitudes of employee samples from the U.S. and Southeast Asia (Indonesia, Malaysia, and Thailand). The results showed that across these two samples, general efficacy had a significant positive relationship with organizational commitment and a significant negative relationship with intention to turnover. Further analysis also indicated that job satisfaction mediated the relationship between general efficacy and organizational commitment and intention to quit in the U.S. sample. The relationship between general efficacy and organizational commitment was stronger in the U.S. than in the three combined countries sampled …

Potential Added Value Of Psychological Capital In Predicting Work Attitudes, Milan Larson, Fred Luthans

Department of Management: Faculty Publications

Meeting the challenge of effectively managing human resources requires new thinking and approaches. To extend the traditional perspective of economic capital, increasing recognition is being given to human capital and more recently social capital, this article proposes and empirically tests the potential added value that psychological capital may have for employee attitudes of satisfaction and commitment. After first providing the background and theory of PsyCap, this article reports a study of manufacturing employees (N = 74) that found a significant relationship between PsyCap and job satisfaction (r=.373) and organization commitment (r=.313). Importantly, the employees’ PsyCap had a significant added impact …

Developing The Psychological Capital Of Resiliency, Fred Luthans, Gretchen R Vogelgesang, Paul B. Lester

Department of Management: Faculty Publications

In these turbulent times, we propose the importance of developing the psychological capital dimension of resiliency. After providing the theoretical background and meaning of psychological capital in general and resiliency in particular, the authors present proactive and reactive human resource development (HRD) strategies for its development. The proactive HRD includes increasing psychological assets, decreasing risk factors, and facilitating processes that allow human resources to enhance their resilience. The reactive HRD largely draws from a broaden-and-build model of positive emotions and self-enhancement, external attribution, and hardiness. The article includes specific guidelines for HRD applications and an agenda for future needed research.