World Risk and Insurance Economics Congressaria.org/meetings/WRIEC 2005 Program.pdfThe American Risk...

A Global Forum to DeepenUnderstanding AmongAcademics, Professionals, andPolicymakers

www.wriec.org

7 - 11 August 2005 in Salt Lake City, Utah, USA

World Risk and Insurance Economics Congress

WWoorrlldd RRiisskk aanndd IInnssuurraannccee EEccoonnoommiiccss CCoonnggrreessssCommittees and Joint Organizers

The sponsoring organizations express their appreciation to the American Institute for CPCU, which serves as the Executive Office for ARIA, our host, andInstitute staff, particularly Tony Biacchi, Lee Gardner, Donna Garrison, Karen Jennings, Kim Nicholl, Joanne Scanlon, Jennifer Smith, and Terrie Troxel.

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AARRIIAAPresident: James M. Carson, Florida State UniversityPresident-Elect: Larry A. Cox, The University of MississippiVice President: James R. Garven, Baylor UniversityImmediate Past President: Robert E. Hoyt, U. of GeorgiaDirectors: Joan Lamm Tennant, General Cologne Re

Capital ConsultantsMary Weiss, Temple UniversityRichard MacMinn, Illinois State UniversityTerri Vaughan, Drake UniversitySimon Ashby, Lloyds TSB Bank, LondonVickie Bajtelsmit, Colorado State University

AAPPRRIIAAPresident: Ramamurthy Vaidyanathan, Indian Institute of

Management at Bangalore, IndiaVice Pres. Operations/Finance: Shih-Chieh “Bill” Chang,

National Chengchi U., TaiwanVice Pres. Programs: Jeffrey Thomas, University of

Missouri at Kansas City, USASecretary: Michael Sherris, University of New South

Wales, AustraliaImmediate Past-President: W. Jean Kwon, St. John's

University, USA Advisor to the President: Harold D. Skipper, Georgia State

University, USA

EEGGRRIIEEPresident: Christian GollierPresident Elect: Peter Zweifel Past President: Henri LoubergéDirectors: Keith Crocker

Patrick LiedtkePierre Picard

Executive Secretary: Christophe Courbage

TThhee GGeenneevvaa AAssssoocciiaattiioonnSecretary General, Managing Director: Patrick M. Liedtke Vice Secretaries General: Walter R. Stahel (Risk Management)

Prof. Gerry Dickinson (Insurance & Finance)

Head of Research Projects: Dr. Christophe Courbage (Health & Ageing)

Dr. Knut H. Hohlfeld (Progres)Ms. Geneviève Reday-Mulvey (4 Pillars)Dr. Bruno Porro (ART of CROs)

Head of Communication: Ms. Stéphanie Achard

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AARRIIAAJames M. CarsonHarold D. Skipper, Jr.

AAPPRRIIAAW. Jean Kwon (chair)Ramamurthy Vaidyanathan

James R. Garven (chair)Larry BergerRichard MacMinnMichael Powers Terri Vaughan

EEGGRRIIEEChristian GollierAchim Wambach

S. Hun Seog (chair)Shih-Chieh Bill ChangPiman LimpaphayomMuhammad Ziaulhaq MamunZiyou Yu

Christian Gollier (chair) Stephen DiaconHenri LoubergéAchim WambachRichard Watt

GGAAPatrick M. LiedtkeChristophe Courbage

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44 Welcome

66 Sponsors

88 Hotel Map and Information

99 Location of Events

1100 Dine Around

1111 Conference Program

1144 Opening Ceremony

1155 Plenary Sessions

1177 Semi-plenary Sessions

1188 Concurrent Sessions

1188 Session I

2211 Session II

2244 Session III

2288 Session IV

3311 Session V

3355 Session VI

3399 Session VII

4422 Session VIII

4444 Message from Conference Organizers

4488 Message from Corporate Sponsors

Table of Contents

4

The American Risk and Insurance Association (ARIA), Asia-Pacific Risk and InsuranceAssociation (APRIA), European Group of Risk and Insurance Economists (EGRIE) and TheGeneva Association (GA) jointly organized this first meeting of the World Risk andInsurance Economics Congress (WRIEC). The purposes of the Congress are to stimulatecorporate awareness and interest in risk-related research and to provide a forum for networking among academics and industry and government professionals worldwide.The joint organizers encourage you to take advantage of the many opportunities thatare available during the World Congress. ARIA graciously hosts this first meeting.

Welcome WRIEC Attendees

James M. Carson W. Jean KwonPresident, ARIA President, APRIA

Christian Gollier Secretary General, Managing DirectorPresident, EGRIE The Geneva Association

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August 7, 2005

Dear WRIEC Attendees:

It is with pleasure that I write this letter welcoming the World Risk and InsuranceEconomics Congress to Salt Lake.

The Salt Lake Convention & Visitors Bureau and the entire community are eager toextend our hospitality to the attendees of the Inaugural Meeting. We welcome theopportunity to host your group and commit our support and talent to ensure a successful convention.

Thank you for allowing us the opportunity to host you. We guarantee you will have a spectacular experience.

Sincerely,

Clifford O. DonerActing President/CEO

The Salt Lake Convention & Visitors Bureau

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Platinum Sponsors

Gold Sponsors

Silver Sponsors

Thank You

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Sponsored Gifts

Travel Bag AIG, AXA, MunichRe, ZurichPortfolio AXIS, Chubb, PartnerReSponge Globe ARIACommemorative Pin U of Louisiana at LafayetteTravel Aid All Corporate Sponsors

With the generous financial support by corporate sponsors, the organizers have provided travel aid to those authors from developing countries whose papers are judged to be of highquality and who certify their employing institutions provide no travel support for attendingthe Congress. Travel aid comprises a waiver of the Congress registration fee and a cash awardof US$500.

The generosity of all sponsors is greatly appreciated.

Sponsors

Platinum

Florida StateUniversity of GeorgiaUniversity of Wisconsin-Madison,

School of Business

Gold

American Institute for CPCUBradley UniversityCalifornia State, NorthridgeGeorgia State UniversityTemple UniversityThe University of MississippiUniversity of North Carolina,

CharlotteVirginia Commonwealth

Silver

LaSalle UniversityUniversity of Calgary,

Haskayne School of Business

Sponsors of WRIEC Activities

First Time Attendees Reception World Congress OrganizersSunday Welcome Reception AIG, AXA, MunichRe, ZurichMonday Breakfast AXISMonday Luncheon World Congress OrganizersMonday Reception before Dinner Palgrave Macmillan in recognition of

The Geneva Papers' 30th AnniversaryMonday Night Dinner AIG, AXA, MunichRe, Zurichincluding Champagne Toast Tuesday Breakfast ChubbTuesday Awards Luncheon Casualty Actuarial SocietyTuesday Dine Around AIG, AXA, MunichRe, ZurichWednesday Breakfast The Geneva AssociationWednesday Luncheon PartnerReThursday Breakfast ARIA, APRIA, EGRIEDaily Coffee and Tea Breaks ARIA Meeting Sponsors

ARIA Sponsors

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Meeting Rooms

All meeting rooms are non-smoking.

Please turn off all cell phones during sessions.

Business Center - ground floor near front desk7am - 7pm (Monday-Friday)8am - 12pm (Saturday)

Consignee - extension 2170

Kinko's (right down the road)801.533.9444Open 24 Hours

Sheraton City Centre

Event Room

Opening Session .......................... Monday, 8 August 8:40 AM - 10:00 AM.... Seasons South

All Plenary Sessions ...................................................................................................... Seasons SouthSemi-plenary Session A ............ Monday, 8 August 4:00 - 5:30 PM ............ Seasons South Semi-plenary Session B ............ Monday, 8 August 4:00 - 5:30 PM ............ Seasons North

Concurrent SessionsSession A .......................................................................................................................... HarvestSession B .......................................................................................................................... Weights and

MeasuresSession C .......................................................................................................................... Rap-Smoke

HouseSession D ........................................................................................................................ GranarySession E .......................................................................................................................... Market StreetSession F ..........................................................................................................................Market WestSession G ........................................................................................................................Season South

(but Wasatch Room on Thursday)

Organization MeetingsARIA Board .................................... Sunday, 7 August, 8:00 AM - 3:00 PM ...... AutumnAPRIAExecutive Committee .......... Sunday, 7 August, 9:00 AM - 1:00 PM ...... Market WestAPRIA Board .................................. Sunday, 7 August, 2:00 PM - 4:00 PM ...... Market WestEGRIE Board .................................. Sunday, 7 August, 4:00 PM - 6:00 PM ...... Rap of the Gavel

ARIA Membership........................ Monday, 8 August 5:30 PM - 6:30 PM ...... Seasons SouthAPRIA Membership .................... Monday, 8 August, 5:30 PM - 6:30 PM .... Seasons NorthEGRIE Membership...................... Monday, 8 August, 5:30 PM - 7:00 PM .... Harvest

Meals and SocialsAll Breakfasts ................................ All Days 7:30 AM - 8:30 AM .......................... Three SeasonsFirst-time Reception.................... Sunday, 7 August 5:00 PM - 6:00 PM ...... HarvestWelcome Reception .................... Sunday, 7 August 6:00 PM - 7:30 PM ...... Seasons NorthAll Luncheons ................................................................................................................ Three SeasonsGeneva Papers Cocktail ............ Monday, 8 August 6:30 - 7:30 .................... CourtyardMonday Dinner ............................ 7:30 PM - 9:00 PM .......................................... Three SeasonsTuesday Dine Around ................ 6:00 PM .............................................................. See page 10

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Location of Events

6:00 PM, Tuesday, 9 August 2005(Prior reservations are required through the WRIEC Staff.)

Attendees: Dine around participants must be at your assigned restaurant by 6:00 PM.

Attire: Business casual; coats are not required.

Travel: The restaurants are located within easy walking distance of the Sheraton. If you foresee difficulty walking to a restaurant, please visit the registration desk.

Restaurants

Baci Trattoria offers an extensive menu of traditional Italian favorites, featuring fresh pasta,pizza, and lasagna, as well as roast veal, lamb, chicken, and seafood specialties. Delicious appetizers, salads, and fresh baked desserts round out the menu. Wall murals painted by localartists, a 30-foot tall-stained glass mural and balcony seating contribute to the colorful,upbeat atmosphere.

Bambara has won several awards as one of “Salt Lake’s Best Restaurants” for its outstandingcuisine, professional service, eclectic design and colorful atmosphere. This “chic” NewAmerican bistro is located inside the Hotel Monaco.

Cucina Toscana takes pride in its proven ability to serve its authentic Tuscan fare in a visuallydramatic atmosphere at the highest levels of service and quality.

Metropolitan specializes in crafting fresh and seasonal New American cuisine, Metropolitanhas been featured on the cover of Salt Lake Magazine and Designing Entrances for Retail andRestaurant Spaces (Rockport Publishing), and has also appeared in The New York Times,Washington Post, USA Today, Fortune, Travel and Leisure, Wine Spectator, Interior Design, Geo,Sunset, Outdoor, Nation's Restaurant News, Sante, The Salt Lake Tribune, Deseret News, UtahBusiness, Utah Homes & Garden, City Weekly and Catalyst.

NNeeww YYoorrkkeerr’’ss is described in Zagat as “a tasteful, elegant classic that is always reliable, alwaysan appropriate choice...’excellent’ Traditional American fare (including great steaks and to-die-for soufflés delivered by a top-notch staff.”

SSppeenncceerr’’ss is the standard for steaks and chops in Salt Lake City. Located in the Hilton Salt LakeCity Center, it’s the only place in the valley where you’ll find USDA Prime-Grade Black AngusBeef. It’s a special place for the best in prime beef or succulent chops, served in a stately, yetcomfortable atmosphere.

Join your friends after the dinner for a cash bar social back at the Sheraton City Centre.10

Dine Around Salt Lake City

11

www.wriec.org7 - 11 August 2005

CONFERENCE PROGRAM at a GlancePlease refer to pages 18 - 43 for specific information about Concurrent Sessions.

World Risk and Insurance Economics Congress

Monday, 8 August 2005 Room7:30 AM ~ 5:00 PM Registration Desk Open Season Lobby

7:30 AM ~ 8:30 AM Continuous Breakfast Buffet Three Seasons Ballroom

7:30 AM ~ 5:00 PM Exhibit Area Open Seasons South Lobby

8:40 AM ~ 10:00 AM

Official Opening: (business attire) Welcome Addresses:

Representatives of the OrganizersGary R. Herbert, Lt. Governor, Utah

Keynote Address Keynote Speaker: Peter A. Diamond, Institute Professor,Massachusetts Institute of Technology

Seasons South Ballroon

10:00 AM ~ 10:30 AM Coffee & Tea Break

10:30 AM ~ 12:00 PM

Plenary Session I: Key Issues in InsuranceModerator: Gordon Stewart, President, Insurance Information

InstitutePanelists: Axel Lehmann,CEO,Zurich North America Commercial

David Holland,Vice Chairman,President & CEO,MunichAmerican Reinsurance

Stanley Tulin,Vice Chairman & CFO, AXA Financial

Seasons South Ballroon

12:30 PM ~ 1:45 PM Luncheon (joint association function) Three Seasons Ballroom

Sunday, 7 August 2005 Room1:00 PM ~ 5:00 PM Registration Desk Open Sessions Lobby

8:00 AM ~ 3:00 PM ARIA Executive Committee and Board Meetings Autumn

9:00 AM ~ 1:00 PM APRIA Executive Committee Meeting Market West

2:00 PM ~ 4:00 PM APRIA Board of Governors Meeting Market West

4:00 PM ~ 6:00 PM EGRIE Board Meeting Rap of the Gavel

5:00 PM ~ 6:00 PMFirst-time Participant Welcome Reception (joint association function)

Harvest

6:00 PM ~ 7:30 PM Welcome Reception (open to all) Harvest, Seasons North

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2:00 PM ~ 3:30 PM

Plenary Session II: Corporate Risk Management by Non-financial FirmsModerator: James Copeland, Jr. CEO (retired), Deloitte TouchePanelists: John R. Alm, President & CEO, Coca-Cola Enterprises

Ed. H. Bowman, President & CEO, SOURCECORPTom Johnson, Chairman & CEO, Chesapeake CorporationCharles Noski,Vice Chairman (retired), AT&T Corporation

Seasons SouthBallroom

3:30 PM ~ 4:00 PM Coffee & Tea Break

4:00 PM ~ 5:30 PM

Semi-plenary Session A: Insurance FraudModerator: Richard Derrig, OPAL ConsultingPanelists: Elizabeth Sprinkel, SVP, Insurance Research Council

Daniel Johnson, Executive Director, Insurance Fraud Bureau of Massachusetts

Hunsoo Kim, Professor, SoonChunHyang University

Seasons South

Semi-plenary Session B: Capital Adequacy and Financial Issues In Insurance Regulation

Moderator: Kawai Yoshihiro, Secretary General, International Association of Insurance Supervisors

Panelists: Potjanee Thanavaranit, Director-General, Department of Insurance, Ministry of Commerce,Thailand

Ruben Mendiolaza, Intendent, Superintendency of Banking and Insurance, Peru

Terri Vaughan, Professor, Drake University, former Iowa Insurance Commissioner and former President of the National Association of Insurance Commissioners (NAIC), USA

Seasons North

5:30 PM ARIA Annual General Meeting (until 6:30 PM)APRIA Annual General Meeting (until 6:30 PM)EGRIE Annual General Meeting (until 7:00 PM)

Seasons SouthSeasons NorthHarvest

7:00 PM ~ 9:00 PM Reception and Outdoor Dinner (casual attire) Courtyard

Tuesday, 9 August 2005 Room7:30 AM ~ 5:00 PM Registration Desk Open Seasons Lobby

7:15 AM ~ 8:15 AM Continuous Breakfast BuffetThree SeasonsBallroom

7:30 AM ~ 5:00 PM Exhibit Area Open Seasons Lobby

8:30 AM ~ 10:00 AM Concurrent Sessions I See page 18


10:30 AM ~ 12:00 PM Concurrent Sessions II See page 21

12:00 PM ~ 1:30 PM Awards LuncheonThree SeasonsBallroom

WRIEC

13

Wednesday, 10 August 2005 Room

7:15 AM ~ 8:15 AM Continuous Breakfast BuffetThree SeasonsBallroom

7:30 AM ~ 5:00 PM Exhibit Area Open Seasons Lobby

8:30 AM ~ 10:00 AM Concurrent Sessions IV See page 28


10:30 AM ~ 12:00 PM Concurrent Sessions V See page 31

12:00 PM ~ 1:15 PM Luncheon (joint association function)Three SeasonsBallroom

1:30 PM ~ 3:00 PM Concurrent Sessions VI See page 35


3:30 PM ~ 5:00 PM Plenary Session IV:The Economics of Brokers - Current Challenges

Moderator: Neil Doherty,The Wharton School, University of Pennsylvania


Thursday, 11 August 2005 Room

7:15 AM ~ 8:15 AM Continuous Breakfast Buffet Three SeasonsBallroom

8:30 AM ~ 10:00 AM Concurrent Sessions VII See page 39


10:30 AM ~ 12:00 PM Concurrent Sessions VIII See page 42

12:00 PM ~ 1:30 PM ARIA Board Meeting

1:45 PM ~ 3:15 PM Concurrent Sessions III See page 24


3:45 PM ~ 5:15 PM

Plenary Session III: Geneva Risk Economics Lecture 2005(Bounding Risk Measures for Portfolios with Known Marginal Risks)

Moderator: Christian Gollier, University of ToulouseSpeaker: Paul Embrechts, Swiss Federal Institute of TechnologyDiscussant: Svein-Arne Persson, Norweign School of Economics and

Business Administration


6:00 PM“Dine Around Salt Lake City” -- Enjoy networking with others in one of the six restaurantsof your choice! See page 10. (Prior reservations are required. Dress is casual.)

Convene in Sheraton lobby at 6:00 PM for walk to restaurants.

8:30 PM “Social Event” at the Conference Hotel (optional)

WRIEC

14

Monday, 8 August 2005, 8:40 - 10:00 AM, Seasons South Ballroom

Master of Ceremonies Harold D. Skipper

Welcome Addresses

Welcome from the Presidents of World Congress Organizers

James M. Carson ARIAW. Jean Kwon APRIAChristian Gollier EGRIEPatrick M. Liedtke The Geneva Association

Welcome from the State of Utah

Honarable Gary R. Herbert, Lt. Governor

Keynote Address

Keynote Speaker:

Peter A. Diamond, Institute Professor Massachusetts Institute of Technology

Opening Ceremony

15

Plenary Sessions

Plenary Session I: Key Issues in Insurance

Monday, 8 August 2005, 10:30 - 12:00 PM, Seasons South Ballroom

Moderator: Gordon Stewart, President, Insurance Information InstitutePanelists: Axel Lehmann, CEO, Zurich North America Commercial

David Holland, Vice Chairman, President & CEO,Munich American Reinsurance

Stanley Tulin, Vice Chairman & CFO, AXA Financial

Plenary Session II: Corporate Risk Management by Non-financial Firms


Moderator: James Copeland, Jr., CEO (retired), Deloitte TouchePanelists: John R. Alm, President & CEO, Coca-Cola Enterprises

Ed H. Bowman, President & CEO, SOURCECORPTom Johnson, Chairman & CEO, Chesapeake CorporationCharles Noski, Vice Chairman (retired), AT&T Corporation

Plenary Session III: Geneva Risk Economics Lecture 2005 (Bounding Risk Measures for Portfolios with Known Marginal Risks)

Tuesday, 9 August 2005 3:45 - 5:15 PM, Seasons South Ballroom

Moderator: Christian Gollier, University of ToulouseSpeaker: Paul Embrechts, Swiss Federal Institute of TechnologyDiscussant: Svein-Arne Persson, Norwegian School of Economics and

Business Administration

16

Plenary Sessions

Plenary Session IV: The Economics of Brokers - Current Challenges

Wednesday, 10 August 3:30 - 5:00 PM, Seasons South Ballroom

Moderator: Neil Doherty, The Wharton School, University of PennsylvaniaPanelists: J. David Cummins, The Wharton School, University of Pennsylvania

Gerald R. Ray, President, Corporate OperationsIndustry Representative (TBA)

17

Semi-plenary Session A: Insurance Fraud


Moderator: Richard Derrig, President, OPAL ConsultingPanelists: Elizabeth Sprinkel, Senior Vice President, Insurance Research Council

Daniel Johnson, Executive Director, Insurance Fraud Bureau of Massachusetts

Hunsoo Kim, Professor, SoonChunhyang University

Semi-plenary Session B: Capital Adequacy and Financial Issues inInsurance Regulation

Monday, 8 August 2005, 4:00 -5:30 PM, Seasons North Ballroom

Moderator: Kawai Yoshihiro, Secretary General, International Association of Insurance Supervisors

Panelists: Potjanee Thanavaranit, Director-General, Department of Insurance, Ministry of Commerce, Thailand

Ruben Mendiolaza, Intendent, Superintendency of Banking and Insurance, Peru

Terri Vaughan, Professor, Drake University, former Iowa Insurance Commissioner and former President of The National Association of Insurance Commissioners (NAIC), USA

Semi-plenary Sessions

18

Concurrent Sessions I: Tuesday, 9 August 2005, 8:30 AM -10:00 AM

Concurrent Sessions

Author Affiliation Paper Title Discussant Affiliation

EGRIE Minh Phuong Bui New York U and U of Toulouse

Comparative Prudenceand ComparativeTemperance

Jim Ligon U of Alabama

EGRIE Louis Eeckhoudt,Béatrice Rey, and HarrisSchlesinger

U of Alabama andU of Konstanz

Putting Risk in itsProper Place:The Multi-dimensional Case

ChristopheCourbage

The GenevaAssociation

EGRIE Christian Gollier U of ToulouseOptimal Expectationswith Complete Markets

AlexMuermann

U of Pennsylvania

Concurrent Session I A: Economics of Uncertainty I -- HarvestModerator: Michael Sonnenholzner U of Erlangen-Nuernberg


EGRIE Pierre Picard U Paris X - Nanterre

Costly Risk Verificationwithout Commitment inCompetitive InsuranceMarkets

Neil Doherty U of Pennsylvania

EGRIE Henri Loubergé andRichard Watt

UniversidadAutonoma deMadrid

The Effect of an Increasein the Probability ofLoss When Risk IsEndogenous

Marie-CécileFagart

Université deRouen

Concurrent Session I C: Insurance Economics I -- Rap of the Gavel and SmokehouseModerator: Achim Wambach, U of Erlangen-Nuernberg

Concurrent Session I B: Efficiency Analysis I -- Weights & MeasuresModerator: Martin Grace, Georgia State U


ARIA B. Paul Choi Howard U

Foreign-owned Insurers’Performance in the U.S.Property-LiabilityMarkets

Lingyan Suo Beijing U

ARIADavid Cummins andXiaoying Xie

U of Pennsylvania

Is Independent AgencyDistribution SystemMore Revenue Efficient:A Data EnvelopmentAnalysis

Martin Grace Georgia State U

19


EGRIE David Cummins,YijiaLin, and Rich Phillips

U of Pennsylvaniaand Georgia State U

An EmpiricalInvestigation of thePricing of FinanciallyIntermediated Riskswith Costly ExternalFinance

RuedigerReissaus

U of Erlangen-Nuernberg

EGRIEJim Barrese, MartinGrace, and Nicos Scordis

St. John's U Concentration in theU.S. Property-LiabilityInsurance Industry

Gene LaiWashington State U

Concurrent Session I D: Insurance Empirics I -- GranaryModerator: Oliver Burkart, BaFin (Federal Financial Supervisory Authority)


APRIA Liu Xiaojun and ChenDan

Central U ofFinance andEconomics, andBeihang U

An Empirical Study onthe Solvency of China'sInsurers Basing theFinancial Situation ofCompanies

ThomasBerry-Stölzle

U of Cologne

APRIASoon-Jae Lee, HunsooKim, and W. Jean Kwon

Sejong U,SoonChunHyang U,and St. John's U

Choice of Exit Forms andFirm Characteristics:Evidence from the U.S.Property-LiabilityInsurance Market

HaroldSkipper

Georgia State U

ARIA Thomas Berry-Stölzle U of Cologne

The Impact of Illiquidityon the AssetManagement ofInsurance Companies

Steven Pottier U of Georgia

Concurrent Session I E: Insurance Solvency -- Market StreetModerator: Steven Pottier, U of Georgia at Athens

Concurrent Sessions

20

Concurrent Session I G: Pensions I -- Season SouthModerator: Roland Eisen, Johann Wolfgang Goethe-U Frankfurt

Concurrent Session I F: Life Insurance I -- Market WestModerator: Bill Rabel, LOMA (retired)


APRIA Zheng YuCentral U ofFinance andEconomics

The Focus of Life: RiskProtection orInvestment--Evidencefrom the Empirical Studyon the Demand of theLife Insurance in China’sEmerging Markets

Randy Dumm Florida State U

APRIAAlexander Kling,Andreas Richter, andJochen Russ

Institut fuerFinanzundAktuarwissenschaften and IllinoisState U

The Impact of SurplusDistribution on the RiskExposure of With ProfitLife Insurance PoliciesPolicies includingInterest RateGuarantees

ChenghsienTsai

NationalChengchiu


ARIA Marie-Eve Lachance San Diego State UHelping Workers DelayRetirement: Is it Worthit?

Jeff BrownU of Illinois andNBER

EGRIE Miguel Romero UniversidadAutonoma deMadrid

Optimal Consumptionand Investment with anUncertainty Lifetime ina Model with Two Assets

JasonSeligman

U of Georgia

10:00 AM - 10:30 AM -- Coffee and Tea Break -- Seasons Lobby

Concurrent Sessions

21


EGRIE Henry Chiu U of Manchester

Skewness Preference,Risk Taking andExpected UtilityMaximization

Minh PhuongBui

New York U and Uof Toulouse

APRIAShih-Chieh Chang,Chenghsien Tsai and Ya-Wen Hwang

National Chengchi U

Hedging Labor Incomeand Inflation uncertain-ties through CapitalMarket in DefinedContribution PensionSchemes

Snorre LindsetNorwegian U ofScience andTechnology

EGRIE Emilio Venezian Rutgers U

Evolving Risk Aversionand the Evidence forConstant Relative RiskAversion

LouisEeckhoudt

FacultésUniversitairesCatholiques deMons (retired)

Concurrent Session II A: Economics of Uncertainty II -- HarvestModerator: Minh Phuong Bui, New York U and U of Toulouse

Concurrent Sessions II: Tuesday, 9 August 2005, 10:30 AM - 12:00 PM

Concurrent Session II B: Insurance Economics II -- Weights & MeasuresModerator: Marie-Cécile Fagart, U de Rouen


EGRIE Jose Penalva IAE, CSIC

A Study of theInteraction of Insuranceand Financial Markets:Efficiency and FullInsurance Coverage

Seungryul Ma Daegu U

EGRIEMarie-Cécile Fagart andBidéman Kambia-Chopin

Université deRouen andUniversité ParisX-Nantere

Prevention in InsuranceMarkets

Henry ChiuU of Manchester

Concurrent Sessions

22


EGRIEJean Pinquet, MercedesAyuso, and MontserratGuillen

U of Barcelona Selection Bias andAuditing Policies onInsurance Claims

Martin BoyerHEC Montréal andCIRANO

ARIA Patrick Brockett, LindaGolden, and SandraDunn

U of Texas at Austin

Biological and Psycho-behavioral Correlates ofRisk Taking, CreditScores, and AutomobileInsurance Losses:Toward an Explanationof Why Credit ScoresWork

Richard Derrig Opal Consulting

ARIARichard A. Derrig andGrzegorz Rempala

Opal Consultingand UniversityLouisville

A Statistical Analysis ofthe SettlementNegotiation Process forAutomobile Bodily InjuryLiability Claims inPresence of Suspicion ofFraud and Build-up

Keith CrockerPennsylvania StateUniversity

Concurrent Session II C: Insurance Empirics II - Rap--SmokehouseModerator: Dick Butler, Brigham Young U

Concurrent Session II D: Life Insurance II -- GranaryModerator: Mahito Okura, Nagasaki U


APRIAMahito Okura andNorihiro Kasuga

Nagasaki UFinancial Instability andLife Insurance Demand

Bill Rabel LOMA (retired)

APRIAYee Wah Chin, Yuan Wu,and Patrick K.P. Chan

NanyangTechnological U

Spousal Characteristicsand Its Effect on LifeInsurance Ownershipbetween Spouses inSingapore

R. SuriyaNarayanan

SBI Life Insurance

Concurrent Sessions

23

Concurrent Session II E: Pensions II -- Market StreetModerator: Vickie Bajtelsmit, Colorado State U


EGRIE Christian Gollier U of Toulouse Optimal PortfolioManagement forIndividual Pension Plans

Richard WattUniversidadAutonoma deMadrid

ARIAJeff Brown and ScottWeisbenner

U of Illinois atUrbana-Champaign andNBER

Individual AccountInvestment Options andPortfolio Choice -Behavioral Lessons from401(k) Plans

DavidRichardson

Georgia State U

Concurrent Session II F: Public Policy -- Market WestModerator: S. Hun Seog, KAIST


EGRIE Anderas Engel andAchim Wambach


Risk Management inProcurement Auctions

John Marshall U of California,Santa Barbara

EGRIE Sandrine Spaeter andPanagiotis Tsakiris

Louis Pasteur Uand NationalTechnical U ofAthens

Environmental Risks andFinancial Guarantees:Improving Prevention inthe Mining Industry

Martin Grace Georgia State U

Concurrent Sessions

24

Concurrent Session II G: Reinsurance -- Season SouthModerator: Bill Ferguson, U of Louisiana at Lafayette


ARIA Cassandra Cole, RyanLee, and KathleenMcCullough

Florida State U andU of Calgary

A Test of the EclecticParadigm: Evidencefrom the U.S.Reinsurance Market

Lars Powell U of Arkansas atLittle Rock

EGRIE Oliver Burkart

BaFin (FederalFinancialSupervisoryAuthority)

Are There Co-move-ments in the DefaultRisk of ReinsuranceCompanies?

Ran Wei U of Pennsylvania

EGRIE Ruediger Reissaus andAchim Wambach


The Demand forReinsurance in theGerman and theEuropean Market: FirstEmpirical Results

Roland Eisen Johann WolfgangGoethe-U Frankfurt

12:00 PM - 1:30 PM -- ARIA Awards Luncheon -- Three Seasons Ballroom

Concurrent Sessions III: 9 August 2005, 1:45 PM - 3:15 PM

Concurrent Session III A: Actuarial Science and Insurance Finance I -- HarvestModerator: Jochen Russ, Institut für Finanz-und Aktuarwissenschaften


ARIA Kristian Miltersen andSvein-Arne Persson

Norweign School ofEconomics andBusinessAdministration

Is Mortality Dead? Jean Pinquet Universite Paris X -Naterre

ARIA Changsoo Lee andKwangbong Lee

Soongsil U and Inje U

Risk Diversifications inReserve Valuation:TheCase of the Korean LifeInsurance Industry

ChenghsienTsai

National Chengchi U

APRIA Chenghsien Tsai,WeiyuKuo, and Derek Mi-HsiuChiang

National Chengchi U

The Distributions ofPolicy ReservesConsidering the Policy-year Structures ofSurrender Rates andExpense Ratios

Stephen P.D’Arcy

U of Illinois

Concurrent Sessions

25

Concurrent Session III B: Corporate Risk Management I -- Weights & MeasuresModerator: Larry Cox, The University of Mississippi


APRIA

J.Thomas Connelly,Piman Limpaphayom,and ThanomsakSuwannoi

Chulalongkorn Uand CelestialBusiness

Are Insurance FirmsExposed to ForeignExchange RateFluctuations? Evidencefrom Insurers in theAsia-Pacific

ChristianThomann

U of Hannover

APRIAYung-Ming Shiu and Yi-Cheng Shin

Tunghai U Derivatives Usage byTaiwanese FinancialFirms

DavidSommer

U of Georgia

Concurrent Session III C: Efficiency Analysis II -- Rap--SmokehouseModerator: Gilles Bernier, Laval U


ARIADavid Eckles andNarumon Saardchom

Georgia Southern Uand NationalInstitute ofDevelopmentAdministration

Technical and ScaleEfficiency in the ThaiNon-life InsuranceIndustry

Yijia Lin Georgia State U

APRIA James C. Hao Tamkang U

Comparison of EconomicEfficiency EstimationMethods: An Applicationto Taiwan's LifeInsurance Industry

B. Paul Choi Howard U

ARIA Lars Powell, DavidEckles, and DavidSommer

U of Arkansas atLittle Rock, GeorgiaSouthern U and U of Georgia atAthens

Internal Capital MarketEfficiency withinFinancialConglomerates:Evidence from Property-Liability InsuranceGroups

AndreLiebenberg

Old Dominion U

Concurrent Sessions

26

Concurrent Session III D: Healthcare Economics I -- GranaryModerator: Etti Baranoff, Virginia Commonwealth U


EGRIE Christophe Courbageand Béatrice Rey

The GenevaAssociation

Prudence and OptimalPrevention for HealthRisks

EmilioVenezian

Rutgers U

EGRIE Rod Garatt and John Marshall

U of California,Santa Barbara

Treatment of Illnessesunder CopaymentInsurance

Peter Zweifel U of Zurich

Concurrent Session III E: Insurance Economics III -- Market StreetModerator: Art Snow, U of Georgia


EGRIE Michael Breuer U of Zurich

Optimal InsuranceContracts without theNon-negativityConstraint onIndemnities: Revisited

Pierre PicardUniversite Paris X -Nanterre

ARIA Peter S. Faynzilberg The Aleph Group,LLC

Competitive InsuranceMarkets

Mahito Okura Kwansei Gakuin U

APRIARichard MacMinn and S. Hun Seog

Graduate School ofManagement,KAIST

Distribution of Price andQuality underInformation Asymmetry

AchimWambach


Concurrent Session III F: Pensions III -- Market WestModerator: David Richardson, Georgia State U


ARIA James Carson andRandy E. Dumm

Florida State U Price Indicia in theIndividual AnnuityMarket

Jennifer Wang National Cheng-chi U

APRIA Wonshik Kim Konkuk U The Corporate PensionSystem in Korea: Limitsand Prospects

Hunsoo Kim SooChunHyang U

Concurrent Sessions

27

Concurrent Session III G: Risk Analysis -- Season SouthModerator: Christian Gollier, U of Toulouse


APRIA Madhu Vij and GunjanSanjeev

U of Delhi andInstitute forIntegratedLearning andManagement

The Determinants ofCountry Risk Ratingsand Their PolicyImplications

Martin Halek U of Georgia atAthens

APRIANeil Doherty and RichPhilips

U of Pennsylvaniaand Georgia State U

Does a LittleCompetition ImproveRatings? The IndustrialOrganization ofInsurance Ratings

Bill Panning Willis Re

ARIA Puneet PrakashVirginiaCommonwealth U

Absolute or Relative:Which Standard DoCredit Rating AgenciesUse?

Jim Barrese St John’s U

3:15 PM - 3:45 PM -- Coffee and Tea Break -- Seasons Lobby

3:45 PM - 5:15 PM -- Plenary Session III: see page 15

Concurrent Sessions

28

Concurrent Sessions

Wednesday, 10 August 2005

7:15 AM - 8:15 AM -- Continuous Breakfast Buffet -- Three Seasons Ballroom

Concurrent Sessions IV: 10 August 2005, 8:30 AM - 10:00 AM


APRIAYijia Lin and Samuel H.Cox

Georgia State UMortality SecuritizationModeling

PatrickBrockett

U of Texas at Austin

ARIA

Richard MacMinn,Krzysztof Ostaszewski,Ranee Thiagarajah, andJan Frederik Weber

Illinois State U

Mortality ImprovementSelect Birth Cohorts andTheir Effect on Pricing ofSurvival Bonds

Richard Butler Brigham Young U

EGRIE

Antoine Delwarde,Michel Denuit, GuillenMontserrat, and AntonioVidiella

U Catholique deLouvain and U ofBarcelona

Application of thePoisson Log-bilinearProjection Model to theG5 Mortality Experience

EmmaZavarrone

Bicocca U, Milan,Italy

Concurrent Session IV A: Actuarial Science, Life Insurance and Mortality -- HarvestModerator: Patrick Brockett, U of Texas at Austin


ARIA Andre Liebenberg andDavid Sommer

Old Dominion Uand U of Georgia

Effects of CorporateDiversification: Evidencefrom the Property-Liability InsuranceIndustry

Yayuan RenU of Wisconsin atMadison

ARIA J. François Outreville UNCTAD Players and DrivingForces in WorldInsurance Services

Xinyu Li Peking U

ARIA Yayuan RenU of Wisconsin atMadison

Insurer Risk-takingStrategies in IndustryEquilibrium

MichaelSherris

U of New SouthWales

Concurrent Session IV B: Corporate Risk Management II -- Weights & MeasuresModerator: Martin Boyer, HEC Montréal and CIRANO

29

Concurrent Session IV C: Healthcare Economics II -- Rap--SmokehouseModerator: Mark Browne, U of Wisconsin at Madison


ARIA Patricia Born,W. KipViscusi, and Tom Baker

California State U,Northridge,Harvard LawSchool, and U ofConnecticut Schoolof Law

Tort Reform in the LongRun: An Analysis of theLasting Effects ofReform Activity onMedical MalpracticeInsurance Profitabilityand CyclicalPerformance

Steven PottierU of Georgia atAthens

ARIA Yu Lei U of Hartford

Effects of Cost-Sharingin Employer-sponsoredHealth Insurance onEmployees’ Use ofHealth Care and Health

HelenDoerpinghaus

U of South Carolina

EGRIE Karolin Becker and PeterZweifel

U of Zurich

Age and Choice inHealth Insurance:Evidence fromSwitzerland

Carlo Savino

AssociazioneNazionale fra leImpreseAssicuratrici

Concurrent Session IV D: Insurance Economics IV -- GranaryModerator: Thomas Russell, Santa Clara U


APRIA Wondon Lee Daegu U, Korea Costly State Verificationby a Claimant

Saleem Shaik Mississippi State U

EGRIE Arthur Snow U of Georgia

On the Possibility ofProfitable Self-selectionContracts in CompetitiveInsurance Markets

Keith H. Coble Mississippi State U

ARIAPaul Thistle and JamesLigon

U of Nevada-LasVegas and U ofAlabama

Moral Hazard andBackground Risk

Arthur Snow U of Georgia

Concurrent Sessions

30

Concurrent Session IV E: Life Insurance III -- Market StreetModerator: Mike Adams, U of Wales, Swansea


ARIA Helmut Gruendl,Thomas Post, andRoman Schulze

HumboldtUniversitaet zuBerlin

To Hedge or not toHedge: ManagingDemographic Risk inLife InsuranceCompanies

Shih-ChiehChang

National ChengchiU

APRIA Robert W. Cooper, Bong-Joo Lee, Kyung-LyongLee, and Han-Duck Lee

Drake U, Kyung HeeU, Sogang U, andHongik U

A Cross-culturalComparison of theEthical Environments ofthe U.S. and SouthKorean Life InsuranceMarkets

HaroldSkipper

Georgia State U

Concurrent Session IV F: Pensions IV -- Market WestModerator: Jack Marshall, U of California - Santa Barbara


APRIASeungryul Ma andDeokho Cho

Daegu U

A Lifetime HousingAsset Plan UsingMortgage and ReverseMortgage Finance inKorea

CassandraCole

Florida State U

APRIA R.VaidyanathanIndian Institute ofManagement

Pension Reforms andCapital MarketDevelopments in India

Byung In LimNational PensionResearch Institute

APRIA Sung-ho Kang andByung In Lim

National PensionResearch Institute,Andong U

The Crowding-out Effectof the Public Pension onthe Private Savings byIncome Classes in Korea

Marie-EveLachance

San Diego State U

Concurrent Sessions

31

Concurrent Session IV G: Social Insurance -- Season SouthModerator: Vicki Batjelsmit, Colorado State U


EGRIE Catarina Goulão COREThe Inefficiency of aTop-up InsuranceSystem

Xiaojun Wang Renmin U of China

ARIA David Richardson andJason Seligman

Georgia State U,and U of Georgia

Social Security:Adequacy versusSustainability

CatarinaGoulão

CORE

EGRIE Roland EisenJohann WolfgangGoethe-U Frankfurt

Short-versus Long termRisks: Arguments inFavour of PAYG SocialSecurity

VickieBajtelsmit

Colorado State U


Concurrent Sessions V: Wednesday, 10 August 2005, 10:30 AM - 12:00 PM

Concurrent Session V A: Agency Theory I -- HarvestModerator: David Sommer, U of Georgia


ARIA David Eckles and MartinHalek

U of Georgia Insurer Reserve Errorand ExecutiveCompensation

Wei Zheng Peking U

ARIA Rob Hoyt and KathleenMcCullough

U of Georgia andFlorida State U

Managerial Discretionand the Impact of Risk-Based CapitalRequirements onProperty-LiabilityInsurer ReservingPractices

Larry Cox The U of Mississippi

ARIA Enya He and DavidSommer

U of Georgia

CEO Turnover andOwnership Structures:Evidence from the U.S.Property-CasualtyInsurance Industry

Qiang Liu The U of Mississippi

Concurrent Sessions

32

Concurrent Session V B: Corporate Risk Management III -- Weights & MeasuresModerator: Richard Phillips, Georgia State U


ARIAMarcel Boyer, MartinBoyer, and Rene Garcia

HEC Montréal andCIRANO

The Value of RiskManagement: A FrontierAnalysis

Greg Davis U of Cambridge

APRIA Mariko Nakabayashi Meiji U

Business Scandals andRisk Management: Froma Business EthicsPerspective

Terrie Troxel AICPCU/IIA

ARIADavid Cummins,Christopher Lewis, andRan Wei

U of Pennsylvania,Hartford InsuranceGroup, and U ofPennsylvania

The Market ValueImpact of OperationalRisk Events

Nobuko Aoba Naruto U ofEducation

Concurrent Session V C: Healthcare Economics III -- Rap--SmokehouseModerator: Sandrine Spaeter, U of Strasbourg


APRIACarlo Savino and DarioFocarelli

AssociazioneNazionale fra leImpreseAssicuratrici

Household PortfolioDiversification and theDiffusion of Health andProperty Insurance inItaly

Jan Ambrose La Salle U

APRIA S. Jayaprakash and S.Ganesan

Jansons School ofBusiness

Tweaking the CorporateHealth InsuranceModels in IndianScenario: An Entry Point

Jie GaoU of Wisconsin-Madison

Concurrent Sessions

33

Concurrent Session V D: Insurance Empirics III -- GranaryModerator: Gene Lai, Washington State U


ARIA Steven Pottier andDavid Sommer

U of Georgia

On the Use of Group-level FinancialInformation in InsurerSolvency Surveillance

FrancescoNatale

Bicocca U

EGRIE Emilio Venezian Rutgers U What Is the Property-Liability InsuranceBusiness?

LaureenRegan

Temple U

ARIALarry Tzeng, Ching-FanChung and JenniferWang

National Taiwan U,Academia Sinicia,and NationalChengchi U

Immoral Smirks JosephRuhland

U of Georgia

Concurrent Session V E: Insurance Finance I -- Market StreetModerator: Peter Zweifel, U of Zurich


ARIA Qiming Wang andJames Ligon

U of Alabama The Underpricing ofIPOs of InsuranceCompanies

Yong-DuckKim

Soongsil U

APRIAWen-Yen Hsu, RichardLu, and Shu-Ying Wu

Feng Chia U

Fair Participating LifeInsurance Policies:TheImpact of Interest RateGuarantees, BonusPolicies, and InvestmentIncentives

Jochen Russ Insitut fuer Finanz- undAktuarwissenschaften

APRIAYu Ziyou and XiaoYanhua

Lingnan U

Safety-first PortfolioOptimization Model:Predicting the AssetPortfolio of ChineseInsurance Funds withDirect Investment in theStock Market

Jung HwanLee

Korea InsuranceDevelopmentInistitute

Concurrent Sessions

34

Concurrent Session V F: Taxes -- Market WestModerator: Richard Derrig, Opal Consulting


ARIA Andreas Milidonis andMartin Grace

Georgia State U

Tax-deferred Pre-eventCatastrophe LossReserves:The Case ofFlorida

Richard Lu Feng Chia U

APRIA Minglai Zhu and YuanYuan

Nankai U

The Impact of StateTaxation on Property-Casualty InsuranceIndustry

Rachel Huang Ming Chuan U

ARIARachel Huang and LarryTzeng

Ming Chuan U andNational Taiwan U

Why Does aGovernment Provide TaxDeductions for NetLosses?

Minglai Zhu Nankai U

Concurrent Session V G: Terrorism Insurance -- Season SouthModerator: Louis Eeckhoudt, Facultés universitaires catholiques de Mons (retired)


EGRIE Christian Thomann andJ-Matthias Graf von derSchulenburg

U of HannoverCorporate Demand forTerrorism Insurance inGermany

ThomasRussell

Santa Clara U

APRIA Tom Russell and DwightJaffee

Santa Clara U Terrorism Insurance:TheRole of Government

Neil Doherty U of Pennsylvania

12:00 PM - 1:15 PM -- Luncheon -- Three Seasons Ballroom

Concurrent Sessions

35

Concurrent Sessions VI: Wedneday, 10 August 2005, 1:30 PM - 3:00 PM

Concurrent Session VI A: Actuarial Science and Insurance Finance II -- HarvestModerator: Krzysztof Ostaszewski, Illinois State U


ARIA Martin Grace and TylerLeverty

Georgia State U

Property-CasualtyInsurer Reserve Error:Motive, Manipulation, orMistake

KrzysztofOstaszewski

Illinois State U

EGRIE Maria Isabel Barao, Ser-Huang Poon, andJonathan Tawn

ManchesterBusiness School

A Dynamic andMultivariate Model forRisk Management andPrediction

Jose Penalva IAE, CSIC

APRIAZinoviy Landsman andMichael Sherris

U of Haifa, and U ofNew South Wales

An Insurance and AssetPricing Model for Non-normal Distributionsand Incomplete Markets

Ser-HuangPoon

ManchesterBusiness School

Concurrent Session VI B: Agency Theory II -- Weights & MeasuresModerator: Cassandra Cole, Florida State U


ARIA Bum Kim California State U,Bakersfield

InformationalAsymmetry, DifferentialCompensation, andImperfect Message inDemutualization

PimanLimpaphayom

Chulalongkorn U

ARIA Nobuko AobaNaruto U ofEducation

The Strategic Role ofInformation inInsurance Markets: AVertical IntegrationModel

Paul Thistle U of Nevada-LasVegas

ARIAJoe Ruhland and DavidSommer

U of Georgia

Information Asymmetryand CorporateGovernance in theProperty-LiabilityInsurance Industry

Bum KimCalifornia State UBakersfield

Concurrent Sessions

36

Concurrent Session VI C: Catastrophe Risk -- Rap--SmokehouseModerator: David Cummins, U of Pennsylvania


ARIA Carolyn W. Chang, JackS.K. Chang,Wei Li Lu

California State Uat Los Angeles andCalifornia StateUniversity atFullerton

Pricing CatastropheInsurance Derivatives ina SubordinatedBinomial Tree

AndreasMilidonis

Georgia State U

ARIA Yves Schneider andPeter Zweifel

U of Zurich

How MuchInternalization ofNuclear Risk ThroughLiability Insurance

Anne Kleffner U of Calgary

ARIA

Xuanjuan Chen, HelenDoerpinghaus,BingXuan Lin, and Tong Yu

U of North Carolinaat Wilmington, U ofSouth Carolina, andU of Rhode Island

Catastrophic Losses andInsurer Profitability:Evidence from 911

Faith Neale U of North Carolinaat Charlotte

Concurrent Session VI D: Insurance Brokerage -- GranaryModerator: Henry Chiu, U of Manchester


EGRIE Michael Sonnenholzner U of Erlangen-Nuernberg

Insurance Brokers andAdvice Quality

Peter Maas U of St. Gallen

ARIA Peter Maas U of St. Gallen How Insurance BrokersCreate Value: AFunctional Approach

MichaelSonnenholzner


EGRIE Neil Doherty and AlexMuermann

U of Pennsylvania Brokers and theInsurance of Non-verifi-able Losses

Larry Tzeng National Taiwan U

Concurrent Sessions

37

Concurrent Session VI E: Insurance Economics V -- Market StreetModerator: Pierre Picard, Universite Paris X - Nanterre


EGRIE Christian Laux Goethe U Frankfurt

Multiline Insurance andSecuritization: BundlingRisks to Reduce MoralHazard

HarrisSchlesinger

U of Alabama andU of Konstanz

APRIA Ziyou Yu and Wu Jianjun Shanghai U ofFinance andEconomics

The Kuznets Hypothesisfor the Income Elasticityof Insurance Demandand Economic Growth: AComparison betweenMature Markets andEmerging Markets

PuneetPrakash

George State U

EGRIEStein-Erik Fleten andSnorre Lindset

Norwegian U ofScience andTechnology

Optimal HedgingStrategies for Multi-period Guarantees inthe Presence ofTransaction Costs: AStochastic ProgrammingApproach

Svein-AnnePersson

Norwegian Scool ofEconomics andBusinessAdministration

Concurrent Sessions

38

Concurrent Session VI F: Insurance Finance II -- Market WestModerator: Bill Panning, Willis Re


EGRIE Francesco Natale andEmma Zavarrone

Bicocca U

Testing for RiskSensitivity in theEuropean InsuranceIndustry: EmpiricalEvidence fromSubordinated DebtIssues

RichardPhillips

Georgia State U

ARIAQiang Liu and KarenEpermanis

The University ofMississippi

Debt-induced AgencyProblems and MarketDiscipline: Evidence inLife InsuranceCompanies that IssueGICs

Enya He U of Georgia

ARIA Hong Zou and MikeAdams

Lingnan U and U ofWales Swansea

Debt Capacity, Cost ofDebt and CorporateInsurance

Rob Hoyt U of Georgia

Concurrent Session VI G: Medical Malpractice Insurance - Season SouthModerator: Jay Thompson, Thompson, Coe, Cousins & Irons


ARIA Faith Neale, KevinEastman, and PamelaPeterson Drake

U of North Carolinaat Charlotte, FloridaState U, and FloridaAtlantic U

Is There a Crisis inHealthcare ProfessionalLiability Insurance

Cuncun Luan U of Wisconsin-Madison

ARIA Anne Carroll and JanAmbrose

Rider U and La Salle U

Medical MalpracticeReform:The Effect onInsurer Claims DefenseEffort

Lars PowellU of Arkansas atLittle Rock

ARIAPatricia Danzon, AndrewEpstein, and ScottHarrington

U of Pennsylvaniaand Yale School ofPublic health

Soft and Hard Marketsin Medical MalpracticeInsurance

Patricia Born California State U,Northridge

Concurrent Sessions

39

3:15 PM - 3:45 PM -- Coffee and Tea Break -- Seasons Lobby

3:30 PM - 5:00 PM - Plenary Session IV: See page 16

Thursday, 11 August 2005

7:15 AM - 8:15 AM -- Continuous Breakfast Buffet -- Three Seasons Ballroom

Concurrent Sessions VII: 11 August 2005, 8:30 AM -10:00 AM

Concurrent Session VII A: Agriculture Insurance -- HarvestModerator: Helmut Gruendl, Humboldt Universitaet zu Berlin


APRIA Chen ShuCentral U ofFinance andEconomics

Risk ManagementModel of ChinaAgriculture InsuranceFund

Liu XiaojunCentral U ofFinance andEconomics

ARIAKeith H. Coble, RobertDismukes, and JosephGlauber

Mississippi State Uand U.S.Department ofAgriculture

Private Crop Insurersand the ReinsuranceFund Allocation Decision

Zhang Hui Central U ofFinance andEconomics

APRIASaleem Shaik andJoseph Atwood

Mississippi State Uand Montana State U

Asymmetric InformationDue to Optional UnitProvision in CropInsurance

R.Vaidyanathan

Indian Institute ofManagement

Concurrent Session VII B: Automobile Insurance I -- Weights & MeasuresModerator: Yehuda Kahane, Tel Aviv U


ARIA Anne Kleffner, GillesBernier, and David Chan

U of Calgary andLaval U

Automobile Insurance inCanada: An Analysis ofCosts and Premiumsacross Provinces

LaureenRegan

Temple U

ARIA Steve D'Arcy U of Illinois Predictive Modeling inAutomobile Insurance

Jason Jia-Hsing Yeh

Chinese U of HongKong

Concurrent Sessions

40

Concurrent Session VII C: Corporate Risk Management IV -- Rap--SmokehouseModerator: Christian Laux, Goethe U Frankfurt


APRIA Yong-Duck Kim Soongsil U

An Empirical Analysis ofMarket Risks in theKorean InsuranceIndustry by Using theVaR Mo

Christian Laux Goethe U Frankfurt

ARIA Mark Browne andCuncun Luan

U of Wisconsin -Madison

The Bowman Paradox inthe U.S. Property andCasualty InsuranceIndustry

MarikoNakabayashi

Meiji U

Concurrent Session VII D: Financial Services Consolidation/ Integration -- GranaryModerator: Bum Kim, California State U, Bakersfield


ARIA Yuan Yuan Georgia State UIntegration in U.S.Financial System andthe Role of Insurers

Qiu PengCentral U ofFinance andEconomics

APRIA Jaehyun Kim, Sukho Lee,and Joongyoung Jeong

Seowon U

Impact ofBancassurance on LifeInsurance Companies inKorea: FirmCharacteristics andPerformance Change

Jing Ai U of Texas, Austin

APRIA M. Z. Mamun andMohammad Aslam

U of Dhaka andInstitute ofChartered Accountsof Bangladesh

Possible Synergy ofBank and Insurance in aDeveloping Economy:Empirical Evidence fromBangladesh

Li-Ming HanChinese U of HongKong

Concurrent Sessions

41

Concurrent Session VII E: Life Insurance IV -- Market StreetModerator: Jim Carson, Florida State U


APRIA Gene Lai and Lin Yhi Chou

Washington State U

The Impact ofOrganizational Structureand Business Strategyon Performance andRisk Taking: Evidencefrom the Life InsuranceIndustry in Taiwan

Jim Carson Florida State U

ARIA Michael E. McShane andLarry Cox

The University ofMississippi

Issuance Decisions andLong Term CareInsurance

Wonshik Kim Konkuk U, Korea

ARIAQixiang Sun, LingyanSuo, and Tao Liu

Beijing UAn Empirical Study ofChina's Life InsuranceDemand

Fang LiING Asia PacificRegional Pensions

Concurrent Session VII F: Miscellaneous Risk Management Topics -- Market WestModerator: Jennifer Wang, National Cheng-chi U


APRIA Mahito Okura, KojiKojima, Mahito Okura,and Yen Tong

Kwansei Gakuin U,Nagasaki U, and Uof Washington

Stock Analyst’sCompensation Structure

H.J. MohdRasid Hussin

Universiti TeknologiMARA

APRIA SeungYoung OhSamsung ResearchInstitute of Finance

A Simple Approach toRisk-based DepositInsurance Pricing

Li Zhang U of Calgary

APRIA Wenyan Shiu Feng Chia U

Uninsured Liabilitiesand Market Discipline inthe Property-LiabilityInsurance Industry

KarenEpermanis

The U of Mississippi

Concurrent Session VII G: Risk Management and Insurance Education I - WasatchModerator: Kathleen McCullough, Florida State U

Strickler Award Winning Paper Presentation - Risk Management Case Project

ARIA Rob Hoyt, U of GeorgiaKathleen McCullough, Florida State URandy Dumm, Florida State U

Concurrent Sessions

42


Concurrent Sessions VIII: 11 August 2005, 10:30 AM - 12:00 PM

Concurrent Session VIII A: Asset/Liability Management -- HarvestModerator: Rob Hoyt, U of Georgia


ARIA S. Hun Seog, andSungwhee Shin

Graduate School ofManagement,KAIST, andUniversity of Seoul

Capital Allocation Usingthe Cooperative GameTheory

Bum KimCalifornia State U,Bakersfield

ARIA Bill Panning Willis ReMeasuring Loss ReserveUncertainty

HelmutGruendl

HumboldtUniversitaet zuBerlin

Concurrent Session VIII B: Insurance Regulation -- Weights & MeasuresModerator: Bill Feldhaus, Georgia State U


ARIA Chu-Shiu Li, Chwen-ChiLiu, and Jason Jai-HsingYeh

Feng Chia andChinese U of HongKong

The Incentive Effects ofIncreasing Per-claimDeductible Contracts inAutomobile Insurance

Jaehyun Kim Seowon U

ARIALaureen Regan, SharonTennyson, and MaryWeiss

Temple U andCornell U

The Incentive Effect ofAutomobile InsuranceRate Regulation onAccident Frequency andLoss Costs: An EmpiricalAnalysis

S. Hun Seog Graduate School ofManagement,KAIST

ARIA Yi-hsun Lai,Wen-changLin, and Min-ming Wen

National Chi NangU, National ChungCheng U, andShippensburg U

An Integrated Analysisof Regulatory Pressureand Franchise Value onthe Risk-takingBehavior of a Property-Liability Insurance Firm

Soon-Jae Lee Sejong U

Concurrent Sessions

43

Concurrent Session VIII C: Risk Management and Insurance Education II -- GranaryModerator: Bill Rabel, LOMA (retired)

Paper Title Discussant Affiliation

ARIA

Special topic: Fundraising for Universityprograms in Risk Management,Insurance, Actuarial Science, andFinancial Services

This session will end at 11:30 AM.

Debbie Babcock,Associate Director

Illinois State U

Ellen C. Paxton, Directorof Corporate andAlumni Relations

Indiana State U

Concurrent Session VIII D: Risk Management Innovation -- Market StreetModerator: Harris Schlesinger, U of Alabama and U of Konstanz


EGRIE Greg Davis U of Cambridge Rethinking Risk:Aspiration as Pure Risk

Yoram EdenCollege ofManagement,Rishon Lezion

APRIALi-Ming Han andRichard MacMinn

Illinois State U Bio-information andInsurance Markets

KwangbongLee

Inje U

ARIA Yoram Eden

College ofManagement,Rishon LeZion(Israel)

Probability Weighting inDamage-claimingDecisions

Wondon Lee Daegu U, Korea

12:00 PM - 1:00 PM -- ARIA Board Meeting -- Autumn

Concurrent Sessions

44

ARIA welcomes all participants and attendees to the inaugural World Risk and InsuranceEconomics Congress

ARIA:• Is a worldwide group of academic, professional, and regulatory leaders in

insurance, risk management, and related areas, joined together to advance the study and understanding of the field.

• Was founded in 1932 and its membership is comprised of academicians,individual insurance industry representatives, and institutional sponsors.

• Members teach at colleges and universities around the world, influencing tens of thousands of current and future insurance professionals and consumers.

• Emphasizes research relevant to the operational concerns and functions of insurance professionals, and provides resources, information, and support on important insurance issues.

• Aims to expand and improve academic instruction to students of risk management and insurance.

• Publishes two distinguished journals to promote the development and distribution of knowledge in risk and insurance: The Journal of Risk and Insurance and Risk Management and Insurance Review (both published by Blackwell).

• Provides forums and other programs to promote increased understanding of issues related to risk and insurance, including the ARIA annual meeting as well as the Risk Theory Society annual meeting.

Along with APRIA, EGRIE, and the GA, ARIA thanks the corporate, institutional, andindividual sponsors of the inaugural World Risk and Insurance Economics Congress.

2006 Annual meetings:2006 April 21 - 23 Richmond, VA Risk Theory Society2006 August 6 - 9 Washington, DC ARIA

For more information about ARIA, see http://www.aria.org

The American Risk and Insurance Association (ARIA)

45

c/o Singapore College of Insurance9 Temasek Boulevard, #14-01/02/03

Suntec Tower 2 o Singapore 038989Phone (65) 6221-2336 o Fax (65) 6220-6684

www.apria.org andwww.scicollege.org.sg/apria.aspEmail: [email protected]

APRIA is pleased to have you, and wishes each and every one of youto enjoy the best risk management, insurance, and actuarial scienceconference ever. It deeply appreciates the support of its individualand corporate members. It also extends thanks to sponsors of theWorld Congress for their support.

APRIA:

• Was created in 1997 to provide a means for all persons and entities with aninterest in risk management, insurance, actuarial science, and related areas to share ideas and to engage in collaborative research for the ultimate benefit of the insurance industry.

• Is international, drawing members from throughout the world, but particularly from Asia-Pacific countries.

• Provides a forum-an annual conference-where individuals from diverse cultural, political, and economic backgrounds-academics, executives,researchers, and government leaders-share their ideas as well as market developments, openly and in a spirit of helpfulness.

• Publishes Asia-Pacific Journal of Risk and Insurance.• Has Singapore College of Insurance, a regional insurance training institution

in Asia Pacific, as the official secretariat.

Future APRIA meetings:

2006 July 30 - August 2 Tokyo, Japan2007 July Taipei, Taiwan2008 July Kuala Lumpur, Malaysia (tentative)2009 July TBA2010 July/August Singapore (tentative)

For more information about APRIA, visit its website or contact its Secretariat [email protected] or [email protected].

Asia-Pacific Risk and Insurance Association

46

http://www.egrie.orgEmail: [email protected]

EGRIE welcomes you to Salt Lake City for the World Risk and Insurance EconomicsCongress and wishes you a constructive andfruitful conference. EGRIE would like to extendits thanks to all those persons and sponsorswho have made this unique event possible.

• EGRIE is a European based non-profit organisation dedicated to promotingresearch on risk and insurance. This is mainly achieved through the organisation of scientific conferences and meetings, the publication of research materials and the creation of a contact network amongst the concerned parties.

• EGRIE was created by the Geneva Association in 1973 and has been supported by this association since then. In September 2002, during the 29th seminar of EGRIE, it was decided to formalise the organisational structure of EGRIE. On September 16, 2003, in Zurich, the founding assembly of EGRIE took place, the statutes of EGRIE were ratified and the Board of Directors was elected.

• Membership in EGRIE is open to all risk and insurance researchers who fulfill one of the two following conditions:

- be the author or co-author of a research paper at an EGRIE event;

- be the author or co-author of a research paper published in the GenevaReview of Risk and Insurance (formerly the Geneva Papers on Risk and Insurance Theory).

• Membership is automatic if the person concerned accepts, and is free of charge. Membership expires if the member has not participated in an official EGRIE event in the last three years.

European Group of Risk and Insurance Economists (EGRIE)

47

The Geneva Association is happy to welcome insuranceeducators and professionals from around the world tothe first World Risk and Insurance Economics Congressin Salt Lake City. The Geneva Association is proud to beone of the four organizations that collaborated in creating and planning this major event.

The International Association for the Study of Risk & Insurance Economics (The Geneva Association)

• The Geneva Association was established in 1973 for the purpose of promoting economic research in the sector of risk and insurance.

• It is formed by a maximum of 80 chief executive officers from the most important insurance companies in the world.

• Its main goal is to research the growing importance of worldwide insurance activities in all sectors of the economy.

• The Geneva Association acts as a forum for its members, providing a worldwide unique platform for the top insurance CEOs.

The Geneva Association has the following core research programmes:

• Risk and Insurance Economics • Risk Management • Insurance and Finance• PROGRES: supervision and regulation• Four Pillars: research on social security and insurance, employment and

retirement• Health and Ageing: developments in health and ageing from a social,

technological, and economic point of view and assessing their influence onrisk management and insurance.

The Geneva Association publishes 8 information newsletters:• Insurance Economics • Risk Management• The Four Pillars • Health and Ageing• PROGRES • Insurance and Finance• General Information Newsletter • World Fire Statistics Bulletin

and two leading academic journals:

• The Geneva Papers on Risk and Insurance-Issues and Practice (published by Palgrave Macmillan)

• The Geneva Risk and Insurance Review (published by Kluwer)

The Geneva Association

54

Notes:

Platinum Sponsors

Gold Sponsors

Silver Sponsors

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