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

Insurance Commons

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

Articles 1 - 6 of 6

Full-Text Articles in Insurance

Transparency Through Insurance: Mandates Dominate Discretion, Tom Baker Apr 2008

Transparency Through Insurance: Mandates Dominate Discretion, Tom Baker

Faculty Scholarship at Penn Law

This chapter describes how liability insurance has contributed to the transparency of the civil justice system. The chapter makes three main points. First, much of what we know about the empirics of the civil justice system comes from access to liability insurance data and personnel. Second, as long as access to liability insurance data and personnel depends on the discretion of liability insurance organizations, this knowledge will be incomplete and, most likely, biased in favor of the public policy agenda of the organizations providing discretionary access to the data. Third, although mandatory disclosure of liability insurance data would improve transparency ...


Self-Protection And Insurance With Interdependencies, Alexander Muermann, Howard Kunreuther Apr 2008

Self-Protection And Insurance With Interdependencies, Alexander Muermann, Howard Kunreuther

Operations, Information and Decisions Papers

We study optimal investment in self-protection of insured individuals when they face interdependencies in the form of potential contamination from others. If individuals cannot coordinate their actions, then the positive externality of investing in self-protection implies that, in equilibrium, individuals underinvest in self-protection. Limiting insurance coverage through deductibles or selling “at-fault” insurance can partially internalize this externality and thereby improve individual and social welfare.


Using A Farmer's Beta For Improved Estimation Of Expected Yields, Miguel A. Carriquiry, Bruce Babcock, Chad E. Hart Apr 2008

Using A Farmer's Beta For Improved Estimation Of Expected Yields, Miguel A. Carriquiry, Bruce Babcock, Chad E. Hart

Economics Publications

Effects of sampling error in estimation of farmers' mean yields for crop insurance purposes and their implications for actuarial soundness are explored using farm- level corn yield data in Iowa. Results indicate that sampling error, combined with nonlinearities in the indemnity function, leads to empirically estimated insurance rates that exceed actuarially fair values. The difference depends on the coverage level, the number of observations used, and the participation strategy followed by farmers. A new estimator for mean yields based on the decomposition of farm yields into systemic and idiosyncratic components is proposed, which could lead to improved rate-making and reduce ...


Providing Prescription Drug Coverage To The Elderly: America’S Experiment With Medicare Part D, Mark Duggan, Patrick Healy, Fiona S. Morton Jan 2008

Providing Prescription Drug Coverage To The Elderly: America’S Experiment With Medicare Part D, Mark Duggan, Patrick Healy, Fiona S. Morton

Health Care Management Papers

The federal government's Medicare program did not provide general prescription drug coverage for the first 40 years of its existence. Thus, more than 30 percent of the 44 million elderly and disabled beneficiaries of the program lacked insurance coverage for prescribed medications. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a voluntary outpatient prescription drug benefit known as Medicare Part D. This program took effect in 2006 and represents the largest expansion of an entitlement program since the start of Medicare itself. The design of Part D is of particular interest to economists for at least ...


Controlling-Minority Shareholder Incentive Conflicts And Directors' And Officers' Liability Insurance: Evidence From China, Hong Zou, Man Lai, Sonia Wong, Chun Yau, Clement Shum, Jun Xiong, Jun Yan Jan 2008

Controlling-Minority Shareholder Incentive Conflicts And Directors' And Officers' Liability Insurance: Evidence From China, Hong Zou, Man Lai, Sonia Wong, Chun Yau, Clement Shum, Jun Xiong, Jun Yan

Staff Publications

This paper examines the demand for directors’ and officers’ liability insurance (D&O insurance) by Chinese listed companies where controlling-minority shareholder incentive conflicts are acute due to the concentrated and split ownership structure. We hypothesize and find evidence that the incidence of seeking D&O insurance is positively related to the extent of controlling-minority shareholder incentive conflicts – a finding not previously documented in the literature. Using an event study, we find that the announcements of D&O insurance decisions in firms that engage in earnings management, and/or are controlled by a local government (such firms tend to have stronger ...


Embracing Risk, Sharing Responsibility, Tom Baker Jan 2008

Embracing Risk, Sharing Responsibility, Tom Baker

Faculty Scholarship at Penn Law

No abstract provided.