Title: Annuity modelling in MTPL Author: Bc. Agáta Eštóková Department: Department of Probability and Mathematical Statistics Supervisor: Mgr. Karolína Kočová Supervisor's e-mail address: kkocova@koop.cz Abstract: This diploma thesis focuses on the possibilities of using generational mortality tables for third party liability insurance, mainly for bodily injured. It describes the construction of generational mortality tables and the creation of RBNS claims reserves. Besides the demonstration of these models, the work analyzes the results of calculating reserves in accordance with generational mortality tables and actual mortality tables of the Czech Republic. An impor- tant element in provision calculating is the simulation of future life expectancy of the insured, i.e. random generation of life expectancy based on generational mortality data. Characteristics of the distribution of reserves are derived from simulations. Furthermore, we compare the results of stochastic and determi- nistic approach of computing the reserves. Keywords: third party liability insurance, RBNS, annuity, generational morta- lity tables.

To date there is little evidence on the relationship between property-liability (P/L) insurer’s frontier efficiency measures and the market. The establishment of a connection is important since there are a number of difficulties associated with measuring P/L insurer efficiency—there is uncertainty regarding the firm’s primary objective, the main services produced, and the measurement of these services. The main goal of the dissertation is to assess the robustness of two approaches to measuring P/L insurer efficiency —the production approach (Cummins and Weiss, 2001) and the flow approach (Brockett, et al, 2004). A secondary objective is to evaluate the performance of two proxies for the production approach’s risk-bearing and “real” loss-services output to observe whether unexpected losses leads to a distortion of efficiency. A third purpose is to determine the sensitivity of the use of the policyholder supplied debt capital input in the production approach. A fourth aim is to evaluate the performance of the range adjusted measure (RAM) of efficiency compared to the traditional data envelopment analysis (DEA) method. A final objective is to assess the connection of accounting-based efficiency to market performance measures. The empirical evidence suggests that unexpected losses do not appear to overly distort the efficiency analysis. The production approach is not extraordinarily sensitive to the inclusion (or exclusion) of the policyholder supplied debt capital input. Traditional DEA measures of efficiency, in comparison to RAM, are more accurate predictors of insolvency and are more highly related to traditional measures of firm performance. Overall, the flow approach is not consistent with the production approach. Firms identified as highly efficient by the production approach are found to be significantly less likely to fail, indicating that the production approach is consistent with the economic reality of P/L insurance market. In contrast, high flow efficient firms are often found to have a higher proclivity to fail. Production approach efficiency is also more highly correlated to traditional measures of firm performance than flow measures of efficiency. The accounting-based production approach is directly related to market measures of firm performance, while flow efficiency is inversely related or unrelated to these measures.

Although the economic motivation and efficiency effects of mergers and acquisitions (M & As) in the insurance industry have been discussed, none of the prior studies have addressed the relationship between M & A activity and insurance price change. In addition, little is known about the effect of diversification on the differences in insurance price across lines. The main objective of the dissertation is to provide evidence on these issues. A secondary objective is to investigate the relationship between M & A activity and insurer’s efficiency and financial performance. We also examine various firm characteristics that affect insurance price differences across lines and that influence insurer’s efficiency and performance. We conduct fixed effects model regressions to test our hypotheses using unbalanced panel data over the sample period 1989-2004. The empirical tests indicate that the price of insurance for newly formed insurers decreases following the M & As and diversified insurers charge lower prices than less diversified firms. Our result is consistent with one possible explanation that acquiring insurers reduce overall underwriting risks and more efficiently manage the frictional costs of capital through geographic and/or product line diversification by engaging in the M & As and therefore gain a competitive advantage in pricing. Our analysis also reveals a number of other interesting results. We find that insurance price is positively related to marginal capital allocation and inversely related to firm insolvency put value, suggesting the importance of incorporating insolvency risk and marginal capital costs in pricing lines of insurance business. We also find that the price of insurance is inversely related to cost efficiency, consistent with the efficiency structure hypothesis. However, the market share variable is not significant, implying that market power that can arise from M & A activity may not be a big concern for insurance regulators. In the analysis of efficiency and financial performance, we provide evidence that acquirers’ overall cost and revenue efficiency and financial performances decrease following M & As. We also find that more focused insurers outperform the diversified insurers.

M. Tech. Architectural Technology / The research is focused on professional indemnity insurance for architects in Namibia. Professional indemnity insurance is not currently provided for in both the Architects' and Quantity Surveyors Act (Act 13 of 1979) of Namibia, or contracts used by architects in Namibia. The absence of professional indemnity insurance in contracts used by the Namibian built environment must be addressed, in order to create awareness of the risks involved in practising without professional indemnity insurance. This study will contribute to the knowledge of architectural practise in Namibia by emphasising the evident gaps in the existing contract data, namely the Architect's and Quantity Surveyor's Act (Act 13 of 1979) and the Client Architect Agreement of the Namibia Council for Architects and Quantity Surveyors. It is envisioned that passing a bill in parliament, making professional indemnity insurance compulsory for all registered professionals, will benefit the Namibian architectural environment. An applied research model is selected by implementing triangulation. The approach starts broadly in the architectural environment of Namibia, addressing issues of contracting and governing legislations, before focusing specifically on professional indemnity insurance and the need for it in the Namibian built environment.

A theme which currently dominates environmental regulation in Canada is for a strengthening of the "polluter pays" approach to environmental regulation. This trend sees those who impair the environment held increasingly financially responsible for their actions through such mechanisms as a new generation of statutory liabilities which include liability for environmental response and cleanup charges, the requirement of security in the event of environmental contamination, and the creation of statutory civil causes of action designed to assist claimants in recovering for losses resulting from environmental contamination. These mechanisms are supplemented by an increasing willingness by the courts to give serious consideration to innovative new approaches by private claimants to hold polluters civilly accountable for toxic tort related claims. As a result, those in Canada with potential exposure to this new generation of environmental liabilities will inevitably turn to the insurance industry for coverage. Ironically, it is these same new liabilities which will make it increasingly difficult for insurers to provide the desired coverage. Further, in the event that such coverage is provided, insurers will be required to be especially diligent in evaluating and delineating those environmental risks which they are prepared to cover. Many industrial and commercial enterprises will require environmental impairment insurance in order to carry out operations subject to environmental risk. Insurers providing environmental insurance in this context will effectively find themselves cast into the somewhat unlikely role of environmental regulators within Canadian society. For more than fifty years the insurance industry in Canada has provided a wide range of insurance products for liability resulting from impairment of the natural environment. In developing and marketing environmental impairment insurance products the insurance industry has primarily relied upon the risk-based analysis which it has historically utilized to provide coverage for more traditional insurance products such as fire, automobile, and marine insurance. However, it is submitted that the attempts by the industry to provide environmental impairment insurance has been fraught with problems, and the success of the products which have been provided has been limited. This in turn raises serious questions as to the ability of the insurance industry to assume responsibility for the regulation of environmental impairment in the future. It is the primary hypothesis of this thesis that the insurance industry has experienced significant difficulties in providing environmental impairment liability insurance in Canada, and that these difficulties are due in large part to the inability of the industry to accurately predict the incidence of loss associated with environmental impairment in Canada. Further, the difficulties with prediction experienced by the insurance industry are primarily the result of its failure to take into account perceptions of environmental risk by the Canadian public and by environmental decision-makers. Finally, this inability to accurately predict has been accompanied by the failure of the insurance industry to recognize the problem, resulting in overconfidence by the industry with respect to its environmental impairment liability products.

Civilinės atsakomybės draudimo instituto apimami klausimai iki šiol buvo nevienareikšmiai interpretuojami tiek Lietuvos Respublikos teismų praktikoje, tiek civilinės teisės doktrinoje. Nepaisant to, Lietuvos Aukščiausiojo Teismo praktikoje yra suformuotos principinės teisės aiškinimo taisyklės draudėjo ir draudiko atsakomybės rūšies ir ribų, neturtinės žalos atlyginimo, regresinio reikalavimo bei draudimo išmokos dydžio apskaičiavimo ir išmokėjimo klausimais. Konkretizuotomis ir pakankamai išsamiai teisiškai argumentuotomis laikytinos ir vežėjų bei notarų profesinės civilinės atsakomybės draudimo sritys. LAT praktikos pokyčiai yra glaudžiai įtakojami, o kartu ir pateisinami materialinių teisinių civilinės atsakomybės draudimo santykių raidos momentais, progresyviomis mokslinėmis tendencijomis bei europine analogiško instituto teisinio reglamentavimo mintimi. Civilinės atsakomybės draudimo socialinė paskirtis, jo aktualumas civiliniuose santykiuose bei efektyvaus teisinio reguliavimo svarba suponuoja teismų bei įstatymų leidėjo pareigą šiuos santykius grįsti ir aiškini, atsižvelgiant į visų suinteresuotų santykio dalyvių interesus. / The questions involved in the institute of civil liability insurance have been construed ambiguous since our days in the practise of the courts of the Republic of Lithuania as well as the doctrine of the civil law. Despite it, the principled regulations of elucidation the law in the questions like the type and limits of responsibility of insurer and the insured, recovering non-pecuniary damage, the right of recourse, calculating and the pay off insurance premium were formed in the practise of the Supreme Court of Lithuania. The areas of the civil liability of the carrier and notary can also be considered as concretized and explained de jure enough. Some of the variations of the practise of the Supreme Court of Lithuania are closely influenced and justified by the development of the factual relations of civil liability insurance, progressive tendencies of the science and the sense of the European legal regulation of analogue institute. The social purpose of civil liability insurance, the relevance of this institute in the social relations and the importance of legal regulations presuppose an obligation to the courts and legislative bodies to base and annotate these relations in the view of all concerned parties.

Univ., Diss.--Hamburg, 2005.

Thesis (LL. M.)--Judge Advocate General's School, 1994. / Title from PDF t.p. (LLMC Digital, viewed on May 13, 2010). "April 94". Includes bibliographical references (p. 76-112).

A theme which currently dominates environmental regulation in Canada is for a strengthening of the "polluter pays" approach to environmental regulation. This trend sees those who impair the environment held increasingly financially responsible for their actions through such mechanisms as a new generation of statutory liabilities which include liability for environmental response and cleanup charges, the requirement of security in the event of environmental contamination, and the creation of statutory civil causes of action designed to assist claimants in recovering for losses resulting from environmental contamination. These mechanisms are supplemented by an increasing willingness by the courts to give serious consideration to innovative new approaches by private claimants to hold polluters civilly accountable for toxic tort related claims. As a result, those in Canada with potential exposure to this new generation of environmental liabilities will inevitably turn to the insurance industry for coverage. Ironically, it is these same new liabilities which will make it increasingly difficult for insurers to provide the desired coverage. Further, in the event that such coverage is provided, insurers will be required to be especially diligent in evaluating and delineating those environmental risks which they are prepared to cover. Many industrial and commercial enterprises will require environmental impairment insurance in order to carry out operations subject to environmental risk. Insurers providing environmental insurance in this context will effectively find themselves cast into the somewhat unlikely role of environmental regulators within Canadian society. For more than fifty years the insurance industry in Canada has provided a wide range of insurance products for liability resulting from impairment of the natural environment. In developing and marketing environmental impairment insurance products the insurance industry has primarily relied upon the risk-based analysis which it has historically utilized to provide coverage for more traditional insurance products such as fire, automobile, and marine insurance. However, it is submitted that the attempts by the industry to provide environmental impairment insurance has been fraught with problems, and the success of the products which have been provided has been limited. This in turn raises serious questions as to the ability of the insurance industry to assume responsibility for the regulation of environmental impairment in the future. It is the primary hypothesis of this thesis that the insurance industry has experienced significant difficulties in providing environmental impairment liability insurance in Canada, and that these difficulties are due in large part to the inability of the industry to accurately predict the incidence of loss associated with environmental impairment in Canada. Further, the difficulties with prediction experienced by the insurance industry are primarily the result of its failure to take into account perceptions of environmental risk by the Canadian public and by environmental decision-makers. Finally, this inability to accurately predict has been accompanied by the failure of the insurance industry to recognize the problem, resulting in overconfidence by the industry with respect to its environmental impairment liability products. / Law, Peter A. Allard School of / Graduate

This diploma thesis deals with professional liability insurance in the Czech Republic. The first chapter focuses on a general description of the insurance and its construction, the basic classification of legal liability and explanation of the types of insurance. The following chapter closely examines the status of professional associations and analyzes the framework agreement concluded by the selected associations. Another part is focused on the professional liability insurance of insurance intermediaries and independent loss adjusters. The last chapter describes the progression and current situation of professional liability insurance, focuses on the current possibilities of arranging insurance and presents selected insurance products.