Business Insurance

The Domain of Geneva Papers on Risk and Insurance and Issues

Geneva Papers

The Geneva Papers on Risk and Insurance Issues presently has two open special issue demand papers:

  • Climate Finance, Resilience and Insurance
  • Emerging Health Risks and Insurance

This journal presents papers supposed to advance the knowledge domain of the insurance trade further on stimulate dialogue between the insurance trade and its economic and social partners all over.

The flagship of the Geneva Association since 1976, the Geneva Papers on Risk and Insurance usually publishes single focus special problems that supply in-depth discussion of problems with current importance. These embrace such topics as Risk Sharing and Insurance for harmful Events; Health; Microinsurance; and Longevity.

The coverage touches on a large variety of topics together with temperature change and natural disaster risk-sharing systems; the impact of insurance pay-outs on small-scale farmers; redesigning social security; guarantee structures in life annuities and a lot of. Insurance regulation is getting into a crucial section worldwide. Over the past twenty years, risk-based macroprudential economic condition regulation has been introduced in several economic areas, and also the expertise is gained with this regulation nowadays can offer input for future enhancements. initial and foremost, any enhancements should be supported by a radical analysis of the impact of these systems on customers, the insurance trade, the insurance markets, (cross-border) insurance management, and monetary stability as an entire. succeeding action can comprise simple amendments to these rules, recovery and determination arrangements, management of the interaction between micro- and macroprudential regulation, and orienting banking and insurance regulation to avoid restrictive arbitrage.

Besides economic condition regulation, shopper protection is presently the second most vital topic in insurance regulation. However, regulation product and distribution channels need a profound cost-benefit analysis as a result of its {the shopper/the buyer/the patron} United Nations agency ultimately bears most of the price of consumer protection. additionally, we’d like to require under consideration the very fact that shopper protection, e.g. within the style of granting intensive contract termination rights in life assurance, may influence Associate in Nursing insurer’s economic condition state of affairs. during this means, shopper protection and economic condition regulation area unit powerfully coupled.

Insurance corporations and insurance markets area units affected not solely by direct insurance regulation however additionally by general cross-sectoral restrictive comes like the introduction of “International monetary news Standards” (IFRS). These restrictive comes will, for instance, influence the transparency of insurance corporations and their product, and area unit thus a crucial issue to think about once discussing insurance regulation.

This special issue of The Geneva Papers on “Insurance and Regulation”, comprising six articles on economic and legal aspects, will cowl just some of the above-named topics. 3 articles touch upon economic condition regulation, one article appearance at the impact of the IFRS on European insurers.

In their article “Cross-Border Insurance Groups: Towards Comprehensive management below economic condition II”, PierpaoloMarano and Michele Siri analyze however cross-border cluster management is union below economic condition II. In effect, we will observe a complicated and finely tuned interaction between national higher-up authorities and also the European Insurance and activity Pensions Authority (EIOPA), which additionally reflects general political interaction within the EC. Marano and Siri create a plea for extending the tasks of the colleges of supervisors: they ought to outline and implement a standard principle of “group interest” for dominant and up the system of governance of cross-border insurance teams. what is more, they recommend that the colleges ought to additionally supervise the distribution of insurance products.

For capital market-oriented insurers, the amount of making ready for economic condition II within the EC coincided with the introduction of monetary news supported the “International monetary news Standards” (IFRS). Initially, there was nice hope of action effects between the IFRS and economic condition II, particularly relating to the valuation standards for assets and liabilities. However, this hope may solely be partly consummated. Another hope was that the rise in transparency through IFRS would be rewarded by capital market participants and would thus cause the higher stock performance of insurers. By applying event study techniques, Abed Al-Nasser Abdallah, Wissam Abdallah, and Feras M. Salama investigate “The Market Reaction to the Adoption of IFRS within the European Insurance Industry”. They realize Associate in Nursing overall positive reaction of the capital markets to the adoption of IFRS in European countries—more pronounced for non-life than forever insurers.

For decades, insurance distribution has been a significant supply of client complaints and consequently a supply of reputational risk for insurance firms. to beat these problems, the “Insurance Distribution Directive” (IDD) makes an attempt to strengthen client protection within the world organization by process minimum recommendation quality and setting transparency standards. Thus, the event of the IDD has been a significant restrictive endeavor within the world organization over the past few years, parallel to the introduction of economic condition II. In their article “The New Insurance Distribution Regulation within the EU—a crucial Assessment from a Legal and Economic Perspective”, Thomas Köhne associate degreed Christoph Brömmelmeyer provide an economic and legal analysis of the IDD and realize that “the IDD seems to be related to over-regulation in some areas”.

All articles printed during this special issue contribute to the continued discussion on rising insurance regulation to foster non-depository financial institution safety, client protection, and money stability. The articles offer several valuable insights into restrictive effects and might so function necessary guides on the road towards a competitive however at identical time safe and truthful financial set-up.

It has been a good honor to edit this special issue of “The Geneva Papers on Risk and Insurance—Issues and Practice”. However, serving as guest editor was solely created potential with several serving to hands throughout the past year. I might wish to specific my special because of Christophe Courbage, Sandra Postle, and town Schlagenhaft from The Geneva Association for his or her priceless support. I might additionally wish to give thanks to all our referees World Health Organization spent several hours serving to assess and improve the articles. Their service to the scientific community demands the best potential respect and feeling. It solely remains on behalf of me to would like you abundant pleasure in reading this special issue on “Insurance and Regulation”.

InsurTech is that the denomination given to the utilization of recent technology within the (re)insurance sector. The ensuing innovations have the potential to alter the approach the insurance trade works.

Developments in technology supply prospects for brand new ways of service provision yet as larger opportunities for knowledge assortment, which may result in higher risk identification and mitigation measures (OECD 2017). These innovations will affect all aspects of the normal insurance business. Moreover, they will produce new insurance business models and impact the restrictive practices of insurance markets.

On the opposite hand, new technologies are ever-changing client protection desires. Their growing application in services and product can probably alter the configuration of inherent risks going forward. Hence, the insurance trade must perceive these risks to still offer adequate coverage to customers.

InsurTech will so be analyzed from totally different points of view: business, legal, organizational, calculator, and moral. during this special issue of The Geneva Papers on Risk and Insurance, InsurTech is examined through the legal and economic implications of the utilization of innovative technology within the (re)insurance trade. These views mirror the discussions command in the metropolis from 13–14 Gregorian calendar month 2019 at the eighteenth Joint Seminar of the EU Association of Law & social science and also the Geneva Association, that was dedicated to Law and Economic problems with InsurTech.

The four papers printed during this special issue touch upon the technological challenges moon-faced by the insurance business, the new business models arising as a result of these new technologies, and also the risks embedded in products and services under recent technologies from that the insurance trade should supply safeguards.

Several technologies support InsurTech however huge knowledge and blockchain are the main topics in insurance discourse (OECD 2017).

With their article “A STEEP framework analysis of the key factors impacting the use of blockchain technology among the insurance industry”, Simon Grima, eating apple Spiteri and Inna Romanova examines the factors which will influence the extent of blockchain proliferation and penetration within the insurance trade. They applied a STEEP analytical framework to systematically assess the social, technological, environmental, economic, and political/legal determinants which will impact the industry’s longing for blockchain technology and conjointly the necessary changes which will be expected as a result. to boot, the authors support their analyses with responses from a survey conducted among a sample of 563 high-level insurance professionals from across Europe. They found that the key perceived enablers unit the inflated use of technological devices within the trade, improved shopper satisfaction, and government support, whereas the key barrier is that the high direct investment worth.

As mentioned previously, InsurTech unveils larger opportunities for data assortment, which can lead to higher risk identification and mitigation measures. The impact of information analytics on the insurance business, specifically car insurance, is analyzed by David J. Cather. His article “Reconsidering insurance discrimination associate degreed adverse alternative in an associate era of knowledge analytics” aims to demonstrate but exchange age- and gender-based rating variables with telematics information in car insurance risk classification systems minimize insurance discrimination and can increase cream-skimming adverse alternative. several recent legal cases relating age- and gender-based insurance discrimination among the U.S., EU and North yank country unit reviewed and three kinds of adverse alternative which will result once insurers cannot differentiate between low- and insecure insureds because of data limitations unit discussed: restrictive adverse alternative and restrictive adverse alternative succeeding from uneven information favoring insurance candidates or rival insurers. He concludes that the commercial viability of telematics-based car insurance provides additional and additional economical rating data that directly measure the driving behavior behind insured losses. As a substitute for an age- and gender-based rating, telematics provides superior risk classification results, so avoiding mean-based rating which will cause adverse alternative by overcharging lower risk drivers.

InsurTech can turn out new insurance business models nevertheless as an impact on the restrictive practices of insurance markets. Technology is facilitating the rise of online peer-to-peer (P2P) platforms (often managed by insurance undertakings or intermediaries), where individuals can attract others to create co-insurance pools (EIOPA 2019). tho’ regulators complete that at now there is not any clear would like for special P2P insurance regulation, continued looking at of the P2P insurance market got to be thought of (EIOPA 2019). The paper by Gian Paolo Clemente and PierpaoloMarano, “The broker model for peer-to-peer insurance: degree analysis of its value”, identifies the restrictive risks associated with P2P models operational in insurance markets, with specific relation to the foremost common: the P2P issue model. exploitation degree calculator model, they analyzed but the risk is assigned between the assorted entities involved throughout a P2P framework therefore on target the assorted components of a P2P premium. They compared the P2P premium to those offered by ancient models projected by classical stock insurers and mutual insurers. They complete that the P2P model will not disrupt this personal lines insurance market, tho’ it’s going to become a property business model in specific segments. However, restrictive challenges got to be resolved if the P2P model is to live up to its aspirations as a fairer numerous to the pool of ancient insurance companies.

The application of recent technologies to services and products can modify the prospect allocation of the parties involved in vogue and commerce. The insurance trade should infix these changes into the event of the insurance product. Michael Faure associate degreed Shu Li provides associate honest example within their paper “Risk shifting within the context of 3D printing: associate eligibility perspective”. The adoption of 3D printing poses a wide liability risk to digital designers and fabricators. The authors explore the extent thereto risk area unit typically unpredictable (and so uninsurable) among the context of 3D printing, once legal uncertainties and conjointly the existence of adverse alternative and loss unit thought of.

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