The Threat of Model Risk for Insurance Companies

AbstractA major outcome of ERM activities in insurance companies has been the bringing together of all of the key risks in the company, to be managed collectively in a holistic fashion. The authors of this paper believe that an ERM framework also needs to look beyond the company, and have regard to the risk management needs of investors, from the point of view of the contribution of the insurance company to the overall risk and reward of their total investment portfolios. To meet these needs, the ERM framework needs to provide sufficient information on topics such as systematic risk, potential correlations of earnings from future new business with macroeconomic trends, other risks to franchise value, and sources of model risk within the company. The paper does not provide solutions for the issues described above; but limits itself to describing and discussing the direction for some important new initiatives in ERM activities.

Download Full-text

On the Risk-Neutral Valuation of Life Insurance Contracts with Numerical Methods in View

Astin Bulletin ◽

10.2143/ast.40.1.2049219 ◽

2010 ◽

Vol 40 (1) ◽

pp. 65-95 ◽

Cited By ~ 27

Author(s):

Daniel Bauer ◽

Daniela Bergmann ◽

Rüdiger Kiesel

Keyword(s):

Life Insurance ◽

Insurance Companies ◽

Generic Model ◽

Model Risk ◽

Early Exercise ◽

Insurance Contracts ◽

Black Scholes ◽

Market Consistent Valuation ◽

The Impact ◽

Valuation Of Life

AbstractIn recent years, market-consistent valuation approaches have gained an increasing importance for insurance companies. This has triggered an increasing interest among practitioners and academics, and a number of specific studies on such valuation approaches have been published.In this paper, we present a generic model for the valuation of life insurance contracts and embedded options. Furthermore, we describe various numerical valuation approaches within our generic setup. We particularly focus on contracts containing early exercise features since these present (numerically) challenging valuation problems.Based on an example of participating life insurance contracts, we illustrate the different approaches and compare their efficiency in a simple and a generalized Black-Scholes setup, respectively. Moreover, we study the impact of the considered early exercise feature on our example contract and analyze the influence of model risk by additionally introducing an exponential Lévy model.

Download Full-text

Online Patient Consultation

Zeitschrift für Orthopädie und Unfallchirurgie ◽

10.1055/a-1192-7800 ◽

2020 ◽

Vol 158 (04) ◽

pp. 345-350

Author(s):

Christian Juhra ◽

Jörg Ansorg ◽

David Alexander Back ◽

Dominik John ◽

Andrea Kuckuck-Winkelmann ◽

...

Keyword(s):

New Technologies ◽

Communication Technologies ◽

Phone Call ◽

Insurance Companies ◽

Personal Contact ◽

Software Products ◽

Patient Consent ◽

Health Insurance Companies ◽

Patient Consultation ◽

Certified Software

AbstractNew communication technologies allow patients to communicate with their physicians from anywhere using computer or smartphone. Adding video to the mere phone call optimizes the personal contact between patient and physicians regardless of distance. Legal and reimbursements requirements must be taken into account, especially only certified software products must be used. In addition, patient consent is needed and confidentiality must be assured. The video patient consultation can be reimbursed by the health insurance companies. As with all new technologies, the introduction of these video consultations faced some challenges. Although patients and physicians have expressed great interest in this technology, it has been rarely used so far. The current COVID crisis increased the need for video consultations resulting in an increasing use of video patient consultation. It can be expected that this demand will still exists after the COVID crisis.

Download Full-text

EFFECTIVENESS AND EFFICIENCY OF INSURANCE COMPANIES: PROBLEMS AND PROSPECTS OF DEVELOPMENT

Economy and Society ◽

10.32782/2524-0072/2018-19-151 ◽

2018 ◽

Author(s):

A.V. Zhavoronok ◽

M.V. Pavlii

Keyword(s):

Insurance Companies ◽

Effectiveness And Efficiency

Download Full-text

Diversification of Insurance Companies’ Products as Supporting Infrastructure Development Institutions in Indonesia

CSID Journal of Infrastructure Development ◽

10.32783/csid-jid.v2i2.76 ◽

2019 ◽

Vol 2 (2) ◽

pp. 161

Author(s):

Wisudanto Mas Suroto ◽

Bagus Mohamad Ramadhan ◽

Tika Widiastuti ◽

Irfan Andi ◽

Muhammad Ubaidillah Al Mustofa

Keyword(s):

Insurance Companies ◽

Infrastructure Development ◽

Development Institutions

Download Full-text

Professional dilemmas for caregivers in Turkish home care settings in Germany

BORDER CROSSING ◽

10.33182/bc.v4i1-2.517 ◽

2014 ◽

Vol 1 (1) ◽

pp. 47-56 ◽

Cited By ~ 1

Author(s):

Jan Basche

Keyword(s):

Healthcare Services ◽

Insurance Companies ◽

Or Education ◽

Migrant Communities ◽

Caregiver Relationship ◽

International Nursing ◽

Nursing Literature ◽

Intercultural Care ◽

The Given

While calling for culturally sensitive healthcare services in migrant communities, the international nursing literature on intercultural care predominantly describes nursing staff as lacking cultural competences and immigrant customers as lacking cleverness to navigate the labyrinths of national healthcare systems. Congruences in language, culture and religion in the customer-caregiver relationship can decisively improve the quality of care. However, they do not automatically guarantee smooth working processes in monocultural in-home settings. On the contrary, new problems occur here for Turkish caregivers which are unknown to the legions of native professionals who feel challenged by migrants and which go beyond differences such as age, sex, income or education. While no cultural or religious brokering is necessary between customers and personnel in the given context in Germany, new challenges arise when caregivers are expected to legally broker between customers and insurance companies or doctors. Conflicting expectations of customers and management as well as their own colliding social and professional roles put the caregivers in a quandary and must be competently managed.

Download Full-text

Benefit Clubs as a Tool for Loyalty Marketing. Study of Brazil’s Main Insurance Companies

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/03.10.2019/004 ◽

2019 ◽

Vol 10 (3) ◽

pp. 216-226

Author(s):

Guaracy Carlos Da Silveira ◽

◽

Fernando Augusto Carvalho Dineli Da Costa ◽

Keyword(s):

Content Analysis ◽

Best Practices ◽

Relationship Marketing ◽

Insurance Companies ◽

Brand Value ◽

Analysis Methodology ◽

Loyalty Marketing

: This paper considers Relationship Marketing as a business strategic tool and seeks to verify the existence of Benefit Clubs and their structure offered by the major insurance companies in Brazil, analyzing the presence and formatting of the programs. Through the content analysis methodology, we seek to infer its uses for the strengthening of the positioning of these companies. At the end of the paper we compare the best practices identified. The result of the analysis considers the differential obtained by the employment of programs that seek to create brand value and loyalty.

Download Full-text