Open Access. Powered by Scholars. Published by Universities.®

Insurance Commons

Open Access. Powered by Scholars. Published by Universities.®

Articles 1 - 2 of 2

Full-Text Articles in Insurance

Index-Based Insurance And Risk Management Among Nomadic Mongolian Herders , Kelsey Larson Dec 2014

Index-Based Insurance And Risk Management Among Nomadic Mongolian Herders , Kelsey Larson

Independent Study Project (ISP) Collection

Mongolian herders must contend with the risk of dzuds, harsh winters that can kill large numbers of livestock. To do so, they use a mixture of formal financial tools and traditional risk mitigation techniques. This paper is a study of the interaction between the Mongolian Index-based Livestock Insurance Program and traditional informal risk mitigation techniques. The researcher interviews herders in Bulgan soum, Arhangai aimag and Galuut soum, Bayanhongor aimag to compare the IBLI program’s impact in a community that has had IBLI since 2006 and one that only received IBLI in 2012. This study finds that insurance purchase is ...


Financial Valuation Of Pbgc Insurance With Market-Implied Default Probabilities, Jules H. Van Binsbergen, Robert Novy-Marx, Joshua Rauh Jan 2014

Financial Valuation Of Pbgc Insurance With Market-Implied Default Probabilities, Jules H. Van Binsbergen, Robert Novy-Marx, Joshua Rauh

Finance Papers

In this paper, we use financial valuation techniques to measure the unfunded liabilities associated with the Pension Benefit Guaranty Corporation (PBGC) single-employer pension insurance program. This is an alternative approach to the calculations of expected future PBGC payouts in the PBGC exposure reports. The PBGC insurance is akin to an exchange option, a financial instrument that allows a party to exchange one risky asset for another. Calculating the value of this option for each PBGC-covered plan provides a measure of the fair market price of the PBGC guarantee that is consistent with the finance principles of risk-neutral pricing. That is ...