Whether directors’ and officers’ (D&O) insurance improves firm value is a controversial issue. We perform a literature review about the effect of D&O insurance and find mixed results. The proponents of D&O insurance believe it enhances corporate monitoring and improves firm value, while the opponents of D&O insurance argue that it creates a moral hazard problem and diminishes firm value. Against this backdrop, we argue that the trade‐off between the monitoring and moral hazard effects depends on the information acquired by the outside directors. Using a sample of listed Canadian firms, we find that (1) a change in D&O insurance coverage has no net effect on a firm's subsequent value when we ignore the information acquired by outside directors, (2) an increase in D&O insurance coverage improves a firm's subsequent value when the outside directors are well informed, and (3) an increase in D&O insurance coverage reduces a firm's subsequent value when the outside directors are poorly informed. Our findings are robust to endogeneity checks and have important implications for the regulation of D&O insurance.
{"title":"Inherent Virtue or Inevitable Evil: The Effects of Directors' and Officers' Insurance on Firm Value","authors":"Derrick W. H. Fung, Jason J. H. Yeh","doi":"10.1111/RMIR.12104","DOIUrl":"https://doi.org/10.1111/RMIR.12104","url":null,"abstract":"Whether directors’ and officers’ (D&O) insurance improves firm value is a controversial issue. We perform a literature review about the effect of D&O insurance and find mixed results. The proponents of D&O insurance believe it enhances corporate monitoring and improves firm value, while the opponents of D&O insurance argue that it creates a moral hazard problem and diminishes firm value. Against this backdrop, we argue that the trade‐off between the monitoring and moral hazard effects depends on the information acquired by the outside directors. Using a sample of listed Canadian firms, we find that (1) a change in D&O insurance coverage has no net effect on a firm's subsequent value when we ignore the information acquired by outside directors, (2) an increase in D&O insurance coverage improves a firm's subsequent value when the outside directors are well informed, and (3) an increase in D&O insurance coverage reduces a firm's subsequent value when the outside directors are poorly informed. Our findings are robust to endogeneity checks and have important implications for the regulation of D&O insurance.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"51 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89959107","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Overview of the California Earthquake Authority","authors":"D. Marshall","doi":"10.1111/RMIR.12097","DOIUrl":"https://doi.org/10.1111/RMIR.12097","url":null,"abstract":"","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"128 1","pages":"73-116"},"PeriodicalIF":0.0,"publicationDate":"2018-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86390930","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Retirement Income Security: Challenges and Opportunities","authors":"R. Ferguson","doi":"10.1111/RMIR.12020","DOIUrl":"https://doi.org/10.1111/RMIR.12020","url":null,"abstract":"","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"45 1","pages":"1-6"},"PeriodicalIF":0.0,"publicationDate":"2014-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81627661","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Catastrophic mortality events are characterized by a sudden and concentrated increase in mortality and as such present a major risk to life insurers. Such events include pandemics, war, natural disasters, terrorist attacks, and industrial, transport, and other accidents. Of these, pandemics arising from influenza are considered the most significant threat to the life insurance industry due to their capacity to cause a major increase in claims. We review the features and mortality implications of an influenza pandemic for life insurers, and describe a range of other risks that are likely to emerge as well.
{"title":"A Review of Catastrophic Risks for Life Insurers","authors":"Alex C. Huynh, Aaron Bruhn, Bridget Browne","doi":"10.1111/rmir.12011","DOIUrl":"https://doi.org/10.1111/rmir.12011","url":null,"abstract":"Abstract Catastrophic mortality events are characterized by a sudden and concentrated increase in mortality and as such present a major risk to life insurers. Such events include pandemics, war, natural disasters, terrorist attacks, and industrial, transport, and other accidents. Of these, pandemics arising from influenza are considered the most significant threat to the life insurance industry due to their capacity to cause a major increase in claims. We review the features and mortality implications of an influenza pandemic for life insurers, and describe a range of other risks that are likely to emerge as well.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"22 1","pages":"233 - 266"},"PeriodicalIF":0.0,"publicationDate":"2013-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84672385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2012-09-01DOI: 10.1111/J.1540-6296.2012.01220.X
Therese M. Vaughan
{"title":"Life Insurance: Providing Long‐Term Stability in a Volatile World","authors":"Therese M. Vaughan","doi":"10.1111/J.1540-6296.2012.01220.X","DOIUrl":"https://doi.org/10.1111/J.1540-6296.2012.01220.X","url":null,"abstract":"","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"2005 1","pages":"255-261"},"PeriodicalIF":0.0,"publicationDate":"2012-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86980837","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2009-09-01DOI: 10.1111/J.1540-6296.2009.01161.X
L. Burt, C. Carlson, J. Kucera, J. Massie
This article features a panel discussion on hurricane and wind insurance organized by Jeffrey L. Kucera for the American Risk and Insurance Association (ARIA) 2008 Annual Meeting in Portland, Oregon. The moderator, Jeffrey L. Kucera, is a Senior Consultant with EMB in North America. He has over 30 years of experience in the property-casualty business, joining EMB after a 24-year career with Allstate and 5 years as a consultant. Jeff's primary practice areas are rate making, class plans, and product development. While knowledgeable about all personal lines, he has particular experience in the homeowners line. He graduated from the University of Nebraska in 1975 with a major in mathematics and a minor in economics. He became a member of the American Academy of Actuaries (MAAA) in 1980 and a Fellow of the Casualty Actuarial Society (FCAS) in 1984. Three presenters provide a discussion on Florida Homeowners Insurance. The first presenter is Chris Carlson, a consultant with Pinnacle Actuarial Resources, Inc. He holds a bachelor of science degree in mathematics from the University of Oregon. Before joining Pinnacle Actuarial Resources, he was employed for over 25 years with Nationwide Insurance Companies in Columbus, Ohio. He is currently the President of the Casualty Actuarial Society, a fellow of the Casualty Actuarial Society, and a Member of the Academy of Actuaries. The next presenter is Locke Burt, President and Director of Security First Insurance Co. of Ormond Beach, Florida. He has 35 years of experience in the insurance profession, and in 2005, formed Security First Insurance Company. He also owns Burt & Scheid Facultative Corporation, which underwrites property facultative reinsurance on behalf of Liberty Mutual Insurance Co. and Employers Mutual Casualty Insurance Co. He holds both a bachelor of science and a master's of business administration degree from Northwestern University and a juris doctorate degree from Loyola University in Chicago. He is a licensed reinsurance broker and a licensed attorney who is a member of the Illinois and Florida Bar Associations. He was a senator in the Florida legislature from 1991 to 2002 and experienced Hurricane Andrew first-hand. While in the Florida Senate, he served as Chair of the Appropriations Committee and Republican Majority Leader. The final presenter is Jim Massie, and he provides the reinsurance perspective on Florida homeowners insurance. He is the Senior Partner of Massie Law Offices in Tallahassee, Florida, specializing in reinsurance and insurance law, seaport issues, and administrative law. He received his bachelor of arts from Miami University in Ohio and his juris doctorate from Florida State University. Interestingly, when he is not working on insurance issues, he likes to breed and race thoroughbreds. Jeff Kucera: Florida's economic growth and exposure to hurricane losses make it unique from an insurance risk perspective. The potential for catastrophic losses is in the billions of dol
这篇文章是由Jeffrey L. kuucera为在俄勒冈州波特兰市举行的美国风险与保险协会(ARIA) 2008年年会上组织的关于飓风和风力保险的小组讨论。主持人Jeffrey L. kuucera是EMB在北美的高级顾问。他在财产险业务方面拥有超过30年的经验，在加入EMB之前，他在好事达(Allstate)工作了24年，并担任了5年的顾问。Jeff的主要实践领域是费率制定、课程计划和产品开发。虽然他对所有个人业务都很熟悉，但他对房主业务尤其有经验。1975年，他毕业于内布拉斯加大学，主修数学，辅修经济学。他于1980年成为美国精算师学会(MAAA)的成员，并于1984年成为伤亡精算学会(FCAS)的会员。三位主持人就佛罗里达州房主保险进行了讨论。第一位演讲人是克里斯·卡尔森，Pinnacle精算资源公司的顾问。他持有the University of Oregon的数学学士学位。在加入Pinnacle Actuarial Resources之前，他在俄亥俄州哥伦布市的Nationwide Insurance Companies工作了超过25年。他目前是伤亡精算协会主席，伤亡精算协会会员，以及精算师学会会员。下一位演讲人是Locke Burt，他是佛罗里达州奥蒙德海滩安全第一保险公司的总裁兼董事。他在保险行业有35年的经验，并于2005年成立了Security First insurance Company。他还拥有Burt & Scheid兼职公司，该公司代表Liberty Mutual Insurance Co.和Employers Mutual Casualty Insurance Co.承保财产兼职再保险。他持有Northwestern University的理学学士学位和工商管理硕士学位，以及芝加哥Loyola大学的法学博士学位。他是一名持牌再保险经纪人和持牌律师，是伊利诺伊州和佛罗里达州律师协会的成员。从1991年到2002年，他是佛罗里达州立法机构的参议员，亲身经历了安德鲁飓风。在佛罗里达州参议院任职期间，他曾担任拨款委员会主席和共和党多数党领袖。最后一位演讲人是吉姆·马西，他从佛罗里达房主保险的角度提供了再保险。他是佛罗里达州塔拉哈西Massie律师事务所的高级合伙人，专攻再保险和保险法、海港问题和行政法。他在俄亥俄州迈阿密大学获得文学学士学位，在佛罗里达州立大学获得法学博士学位。有趣的是，当他不从事保险工作时，他喜欢培育和比赛纯种马。杰夫·库塞拉:佛罗里达州的经济增长和遭受飓风损失的风险使其从保险风险的角度来看是独一无二的。潜在的灾难性损失可能高达数十亿美元，对许多保险公司来说，“破产风险”是一个真正的威胁。更重要的是，一旦特大飓风事件发生，面临严重经济压力的不仅仅是保险公司。许多投保人也会惊讶地发现，他们的保险费率可能会大幅提高，而且这些保费不仅仅是针对他们的房屋保险。三位小组成员将进一步描述这种情况是如何发展的，以及他们作为保险公司所有者和再保险人对这种情况的看法。克里斯托弗·s·卡尔森:佛罗里达州的经济状况是供需相互作用的一种相当不寻常的情况。保单持有人要求保单，保险公司提供资金来撰写保单。可负担性和可用性是佛罗里达房主市场的关键动力。也就是说，佛罗里达州的房主认为保险应该是负担得起的，而保险公司关心的是可用性问题，因为他们的资本处于风险之中。…
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Pub Date : 2009-04-27DOI: 10.1111/J.1540-6296.1997.TB00062.X
K. A. Olsen, Jack L. VanDerhei
: While traditional fixes to restore Social Security to actuarial balance have known consequences for employers, opinion polls show strong public support for nontraditional approaches, e.g., the stock market investment of Social Security funds (privatization). The authors examine some of the complex assumptions which have been raised as the basis for determining if privitization would benefit employers and discuss the lack of research available to support or dispute the validity of some of these assumptions.
{"title":"POTENTIAL CONSEQUENCES FOR EMPLOYERS OF SOCIAL SECURITY “PRIVATIZATION:” POLICY RESEARCH IMPLICATIONS","authors":"K. A. Olsen, Jack L. VanDerhei","doi":"10.1111/J.1540-6296.1997.TB00062.X","DOIUrl":"https://doi.org/10.1111/J.1540-6296.1997.TB00062.X","url":null,"abstract":": While traditional fixes to restore Social Security to actuarial balance have known consequences for employers, opinion polls show strong public support for nontraditional approaches, e.g., the stock market investment of Social Security funds (privatization). The authors examine some of the complex assumptions which have been raised as the basis for determining if privitization would benefit employers and discuss the lack of research available to support or dispute the validity of some of these assumptions.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"35 1","pages":"32-50"},"PeriodicalIF":0.0,"publicationDate":"2009-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84651312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2009-04-27DOI: 10.1111/J.1540-6296.1997.TB00065.X
G. E. Hughes
: In September of 1996, The Board of Directors of the American Council of Life Insurance (“ACLI”)reversed decades of policy and embraced for the first time the concept of reciprocal ownership or “affiliations” between life insurance companies and commercial banks. Under this new policy mandate, the ACLI is advocating federal legislation that would permit banks to sell all types of insurance and control insurance underwriters through separate affiliates or subsidiaries. In return, 1) insurers would have the authority to acquire banks; 2) the insurance activities of banks would be fully subject to state insurance regulation; and 3) federal bank regulators would be precluded from preempting state regulatory authority. This article reviews the various factors that precipitated this watershed policy decision, discusses the structural and regulatory issues that are important to life insurers, and speculates briefly on the prospects for financial services legislation.
{"title":"At The Crossroads: The Life Insurance Industry And Financial Services Reform","authors":"G. E. Hughes","doi":"10.1111/J.1540-6296.1997.TB00065.X","DOIUrl":"https://doi.org/10.1111/J.1540-6296.1997.TB00065.X","url":null,"abstract":": In September of 1996, The Board of Directors of the American Council of Life Insurance (“ACLI”)reversed decades of policy and embraced for the first time the concept of reciprocal ownership or “affiliations” between life insurance companies and commercial banks. Under this new policy mandate, the ACLI is advocating federal legislation that would permit banks to sell all types of insurance and control insurance underwriters through separate affiliates or subsidiaries. In return, 1) insurers would have the authority to acquire banks; 2) the insurance activities of banks would be fully subject to state insurance regulation; and 3) federal bank regulators would be precluded from preempting state regulatory authority. \u0000 \u0000 \u0000 \u0000This article reviews the various factors that precipitated this watershed policy decision, discusses the structural and regulatory issues that are important to life insurers, and speculates briefly on the prospects for financial services legislation.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"20 1","pages":"85-97"},"PeriodicalIF":0.0,"publicationDate":"2009-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75300944","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2009-04-27DOI: 10.1111/J.1540-6296.1997.TB00064.X
Julie L. Williams, Stuart E. Feldstein, Karen E. Mcsweeney
Abstract: The authors examine the recent events involving banks and insurance. They also present an overview of some of the regulatory issues which are not settled.
摘要:本文研究了最近发生的涉及银行和保险业的事件。他们还概述了一些尚未解决的监管问题。
{"title":"Current Issues Regarding Bank Sales Of Insurance And Annuity Products","authors":"Julie L. Williams, Stuart E. Feldstein, Karen E. Mcsweeney","doi":"10.1111/J.1540-6296.1997.TB00064.X","DOIUrl":"https://doi.org/10.1111/J.1540-6296.1997.TB00064.X","url":null,"abstract":"Abstract: The authors examine the recent events involving banks and insurance. They also present an overview of some of the regulatory issues which are not settled.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":"18 1","pages":"65-84"},"PeriodicalIF":0.0,"publicationDate":"2009-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78322658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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