handbook of international insurance3a978-0-387-34163-7%2f1.pdfgrossi, patricia and kunreuther,...

HANDBOOK OF INTERNATIONAL INSURANCE

Between Global Dynamics and Local Contingencies

Huebner International Series on Risk, Insurance, and Economic Security J. David Cummins, Editor

The Wharton School University of Pennsylvania Philadelphia, Pennsylvania, USA

Series Advisors: Dr. Phelim P. Boyle

University of Waterloo, Canada Dr. Jean Lemaire

University of Pennsylvania, USA Professor Akihiko Tsuboi

Kagawa University, Japan Dr. Richard Zeckhauser

Harvard University, USA Other books in the series: Cummins, J. David and Derrig, Richard A.: Classical Insurance Solvency Theory

Borba, Philip S. and Appel, David: Benefits, Costs, and Cycles in Workers' Compensation

Cummins, J. David and Derrig, Richard A.: Financial Models of Insurance Solvency

Williams, C. Arthur: An International Comparison of Workers' Compensation

Cummins, J. David and Derrig, Richard A.: Managing the Insolvency Risk of Insurance Companies

Dionne, Georges: Contributions to Insurance Economics Dionne, Georges and Harrington, Scott E.: Foundations of Insurance Economics

Klugman, Stuart A.: Bayesian Statistics in Actuarial Science Durbin, David and Borba, Philip: Workers' Compensation Insurance:

Claim Costs, Prices and Regulation Cummins, J. David: Financial Management of Life Insurance

Companies Gustavson, Sandra G. and Harrington, Scott E.: Insurance, Risk Management, and Public Policy

Lemaire, Jean: Bonus-Malus Systems in Automobile Insurance Dionne, Georges and Laberge-Nadeau: Automobile Insurance: Road Safety, New Drivers, Risks, Insurance Fraud and Regulation

Taylor, Greg: Loss Reserving: An Actuarial Perspective Dionne, Georges: Handbook of Insurance Sinha, Tapen: Pension Reform in Latin America and Its Lessons for International Polichmakers Lascher, Jr., Edward L. and Powers, Michael R.: The Economics and Politics of Choice No-Fault Insurance Grossi, Patricia and Kunreuther, Howard: Catastrophe Modeling: A New Approach to Managing Risk Cummins, J. David and Venard, Bertrand: Handbook of International Insurance: Between Global Dynamics and

Local Contingencies

HANDBOOK OF INTERNATIONAL INSURANCE

Between Global Dynamics and Local Contingencies

edited by

J. David Cummins Temple University, USA

Fox School of Business and Management

and

Bertrand Venard AUDENCIA Nantes School of Management, France

Springer

Library of Congress Control Number: 2006925828

ISBN-13: 978-0387-34162-0 ISBN-13: 978-0387-34163-7 (e-book)

ISBN-10: 0-387-34162-5 ISBN-10: 0-387-34163-3 (e-book)

Printed on acid-free paper.

© 2007 Springer Science+Business Media, LLC

All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, Inc., 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now knon or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights.

Printed in the United States of America.

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Table of Contents

TABLE OF CONTENTS v

AUTHORS'BIOGRAPHIES xvii

J . INTERNATIONAL INSURANCE MARKETS: BETWEEN GLOBAL DYNAMICS AND LOCAL CONTINGENCIES-AN INTRODUCTION 1

1.1 INTRODUCTION 1

1.2 CONTENTS AND COUNTRY SELECTION 2

1.3 CHAPTER CONTENTS 6

1.4 GLOBAL SIMILARITIES AND LOCAL DIFFERENCES 17

1.5 ACKNOWLEDGEMENTS 23

1.6 REFERENCES 23

2 THE UNITED STATES INSURANCE MARKET: CHARACTERISTICS AND TRENDS 25

2.1 INTRODUCTION 25

2.2 HISTORY OF THE U.S. INSURANCE MARKET 26

2.3 THE CURRENT REGULATORY ENVIRONMENT 44

2.4 THE U.S. LIFE-HEALTH INSURANCE INDUSTRY 58

2.5 THE U.S. PROPERTY-LIABILITY INSURANCE INDUSTRY 91

vi International Insurance Markets

2.6 CONCLUSION 131

2.7 REFERENCES 132

2.8 LEXICON 137

3 THE JAPANESE INSURANCE MARKET AND COMPANIES: RECENT TRENDS 147

3.1 INTRODUCTION 147

3.2 INSURANCE MARKETS 148

3.3 LIFE INSURERS 162

3.4 NON-LIFE INSURERS 176

3.5 OTHER INSURANCE PROVIDERS 185

3.6 CURRENT IMPORTANT ISSUES 191

3.7 CONCLUDING REMARKS 196

3.8 REFERENCES 196

3.9 USEFUL WEB SITES 197

3.10 LEXICON 198

4 THE UK INSURANCE INDUSTRY- STRUCTURE AND PERFORMANCE 205


4.2 REGULATION AND SUPERVISION 207

4.3 THE STRUCTURE OF THE INDUSTRY 209

4.4 CONCLUSION 232

4.5 REFERENCES 233

4.6 APPENDIX 235

Table of Contents vii

THE FRENCH INSURANCE MARKET: BACKGROUND AND

TRENDS 241


5.2 A BRIEF HISTORY OF FRENCH INSURANCE 242

5.3 REGULATION OF THE FRENCH INSURANCE MARKET 248

5.4 GENERAL DESCRIPTION OF THE FRENCH INSURANCE MARKET 254

5.5 INSURANCE ECONOMIC ACTORS IN FRANCE 264

5.6 FINANCIAL PERFORMANCE OF FRENCH INSURANCE COMPANIES 272

5.7 DISTRIBUTION CHANNELS 277

5.8 CONCLUSION 296

5.9 REFERENCES 296

5.10 LEXICON 300

THE GERMAN INSURANCE INDUSTRY: MARKET OVERVIEW AND TRENDS 305

6.1 HISTORY OF PRIVATE INSURANCE MARKETS IN GERMANY 305

6.2 GENERAL MARKET OVERVIEW 307

6.3 INSURANCE LINES 318

6.4 REGULATION 331

6.5 CONCLUSION: DEVELOPMENT AND OUTLOOK 339

6.6 REFERENCES 340

6.7 LEXICON 342

viii International Insurance Markets

I THE ITALIAN INSURANCE SECTOR BETWEEN MACRO AND MICRO FACTS: SALIENT FEATURES, RECENT TRENDS, AND AN ECONOMETRIC ANALYSIS 347


7.2 THE MACRO-DYNAMICS OF THE ITALIAN INSURANCE MARKET 348

7.3 A MICRO PERSPECTIVE OF THE ITALIAN INSURANCE MARKET 378

7.4 A MICROECONOMETRIC ANALYSIS OF INSURANCE HOLDINGS 382

7.5 CONCLUSION 396

7.6 REFERENCES 397

7.7 WEB SITES OF INTEREST 399

7.8 LEXICON 399

8 A DESCRIPTIVE ANALYSIS OF CANADIAN INSURANCE MARKETS 403


8.2 CANADIAN INSURANCE INDUSTRY: A HISTORICAL PERSPECTIVE 404

8.3 THE ECONOMIC ENVIRONMENT IN CANADA 406

8.4 THE CANADIAN INSURANCE MARKET 408

8.5 FINANCIAL CONDUCT AND PERFORMANCE 429

8.6 CURRENT AND FUTURE TRENDS IN THE CANADIAN INSURANCE INDUSTRY 444

8.7 CONCLUSION 448

8.8 REFERENCES 449

10

Table of Contents ix

8.9 IMPORTANT WEB SITES 451

8.10 LEXICON 451

INSURANCE IN THE NETHERLANDS: MARKET STRUCTURE AND RECENT DEVELOPMENTS 455


9.2 HISTORICAL BACKGROUND.... 455

9.3 OVERVIEW OF RECENT DEVELOPMENTS 459

9.4 MARKET OVERVIEW 462

9.5 CONCENTRATION, GLOBALIZATION, INTEGRATION, AND THE DUTCH INSURANCE MARKET 483

9.6 SUPERVISION 490

9.7 CONCLUSION 491

9.8 REFERENCES 493

9.9 LEXICON 495

THE STRUCTURE, CONDUCT, AND PERFORMANCE OF THE SPANISH INSURANCE INDUSTRY 499


10.2 REGULATION 500

10.3 THE STRUCTURE OF THE SPANISH INSURANCE MARKET 510

10.4 TECHNICAL RESULTS, PROFITS, AND

FINANCIAL CONDITIONS 538

10.5 CONCLUSION 547

10.6 REFERENCES 548

X International Insurance Markets

10.7 LEXICON 550

11 THE INSURANCE MARKET IN THE REPUBLIC OF IRELAND 553


11.2 POLITICAL AND ECONOMIC BACKGROUND 554

11.3 THE NON-LIFE INSURANCE MARKET 559

11.4 LIFE INSURANCE 572

11.5 PENSIONS 577

11.6 HEALTH INSURANCE 579

11.7 DISTRIBUTION CHANNELS 583

11.8 CONCLUSIONS 585

11.9 REFERENCES 586

11.10 APPENDIX 588

11.11 LEXICON 591

1 . 2 CHINA'S INSURANCE INDUSTRY: DEVELOPMENTS AND PROSPECTS 597


12.2 CHINA'S INSURANCE INDUSTRY BEFORE 1949 598

12.3 CHINA'S INSURANCE INDUSTRY IN THE ECONOMIC REFORM: PAST AND PRESENT 600

12.4 AFTER OPENING UP: OPPORTUNITIES AND CHALLENGES 618

12.5 THE FUTURE OF CHINA'S INSURANCE INDUSTRY 622

12.6 CONCLUSION 630

13

14

Table of Contents xi

12.7 REFERENCES 630

12.8 APPENDIX 1: An Overview of the Top Insurance Companies in China's Life and Non-Life Industry 634

12.9 APPENDIX 2: Average Exchange Rate of RMB to Main Convertible Currencies (Middle Rate), 1980-2003 638

12.10 LEXICON 638

AN ANALYSIS OF THE EVOLUTION OF INSURANCE IN INDIA.... 641


13.2 EVOLUTION OF INSURANCE BEFORE NATIONALIZATION 642

13.3 EVOLUTION OF INSURANCE DURING THE NATIONALIZED ERA: 1956 TO 2000 645

13.4 CURRENT STATE OF PLAY AND FUTURE PROSPECTS 665

13.5 CONCLUSIONS 673

13.6 REFERENCES 674

13.7 APPENDIX 1: Definitions of Various Lines of Business in the Insurance Act of 1938 675

13.8 APPENDIX 2: Detailed Factors for Each Major Line of Insurance Business 676

13.9 APPENDIX 3: Insurance/Reinsurance Companies in India (December 31,2003) 677

13.10 LEXICON 677

SOUTH AFRICAN INSURANCE MARKETS 679


xii International Insurance Markets

14.2 HISTORY OF SOUTH AFRICA'S INSURANCE MARKETS 680

14.3 REGULATORS 686

14.4 THE RETIREMENT FUNDING MARKET 689

14.5 THE LONG-TERM (LIFE) INSURANCE MARKET 699

14.6 THE SHORT-TERM MARKET 715

14.7 MEDICAL HEALTH FUNDING 724

14.8 CONCLUSION 732

14.9 REFERENCES 732

14.10 STATUTES 736

14.11 LEXICON 737

J . 5 RECENT DEVELOPMENTS IN THE BRAZILIAN INSURANCE MARKET 743


15.2 THE SOUTH AMERICAN INSURANCE MARKET 744

15.3 THE DEVELOPMENT OF BRAZILIAN INSURANCE 750

15.4 THE FUTURE OF THE BRAZILIAN INSURANCE MARKET 779

15.5 CONCLUSION 781

15.6 REFERENCES 781

15.7 LEXICON 783

1 6 EUROPEAN INSURANCE MARKETS: RECENT TRENDS AND FUTURE REGULATORY DEVELOPMENTS 789


Table of Contents xiii

16.2 OVERVIEW OF EUROPEAN INSURANCE

MARKET 790

16.3 COUNTRY OVERVIEWS 798

16.4 CONCLUSION 845

16.5 REFERENCES 846

I f SOUTH AND EAST ASIAN INSURANCE MARKET GROWTH AND DEVELOPMENT 849


17.2 DEMAND AND SUPPLY OF SOUTH AND EAST ASIAN INSURANCE 850

17.3 UNDERSTANDING THE DRIVERS OF INSURANCE MARKET GROWTH 866

17.4 IMPLICATIONS FOR DECISION MAKERS 869

17.5 CONCLUSION 870

17.6 REFERENCES 871

17.7 LEXICON 874

18 THE GLOBAL REINSURANCE MARKET 877


18.2 THE DEMAND FOR REINSURANCE 879

18.3 STRUCTURE OF THE GLOBAL REINSURANCE MARKET 885

18.4 THE WORLD'S MAIN REINSURANCE CENTERS 889

18.5 MARKET IMPROVES RESULTS AND CAPITALIZATION 896

18.6 CONCLUSION 897

xiv International Insurance Markets

18.7 REFERENCES 898

18.8 LEXICON 900

1 9 LLOYD'S AND THE LONDON INSURANCE MARKET: AN OVERVIEW 903

19.1 U.K. INSURANCE MARKET CONTEXT 903

19.2 THE LONDON MARKET 905

19.3 LLOYD'S BACKGROUND AND HISTORY 910

19.4 LLOYD'S: A MARKET, NOT A COMPANY 911

19.5 LLOYD'S GLOBAL IMPACT 916

19.6 CURRENT CHALLENGES FOR THE U.K. INSURANCE INDUSTRY 919

19.7 CONCLUSION 921

19.8 REFERENCES 922

19.9 USEFUL WEB SITES 922

19.10 LEXICON 923

20 AN OVERVIEW OF THE ALTERNATIVE RISK TRANSFER MARKET 925

20.1 WHAT IS ALTERNATIVE RISK TRANSFER? 925

20.2 MARKET OVERVIEW 926

20.3 WHY ALTERNATIVE RISK TRANSFER DEVELOPED 927

20.4 GLOBAL DEVELOPMENTS 930

20.5 TYPES OF ALTERNATIVE RISK TRANSFER 931

20.6 THE BERMUDA INSURANCE MARKET 948

Table of Contents xv

20.7 CONCLUSION 949

20.8 REFERENCES 949

20.9 LEXICON 951

INDEX 953

Authors' Biographies

GILLES BENIER

Gilles Bemier is a full professor of finance and insurance in the Faculty of Business Administration at Laval University where he also holds the Industrial-Alliance Insurance Chair. His fields of specialization include market power, efficiency and productivity, personal finance and retirement planning. Currently, he is studying the efficiency and productivity of Canadian insurers using frontier methodologies. Dr. Bemier has published more than twenty scientific and professional articles and three books, including Risk and Insurance. He serves regularly as a referee for finance and insurance academic journals and is member of the American Risk and Insurance Association.

Email: [email protected]

FERNANDA CHAVES PEREIRA

Fernanda Chaves Pereira is the academic coordinator of the Instituto de Gestao de Riscos Financeiros e Atuariais (lAPUC), a new institute created at PUC-Rio for the academic development of insurance and pension in Brazil. Dr. Pereira is an actuary who finished her Ph.D. in 2001 fi*om City University London. She also was awarded the Highly Commended Brian Hey Prize from the Institute of Actuaries, UK in 1999. Her fields of specialization include loss reserving and mortality improvement. She is the coordinator of the education committee at the Brazilian Actuary Institute and is also the organizer of the second (2005) and third (2007) Brazilian Conference on Statistical Modelling in Insurance and Finance.


J. DAVID CUMMINS

J. David Cummins is the Joseph E. Boettner Professor of Risk Management, Insurance, and Financial Institutions at Temple University's Fox School of Business and Management. In addition, he is the Director of the Advanta Center at Temple University and Professor Emeritus at the Wharton School of the University of Pennsylvania. His fields of specialization include financial institutions, securitization, risk management, and productivity. Dr. Cummins has published more

xviii International Insurance Markets

than eighty refereed journal articles. His recent books include Changes in the Life Insurance Industry: Efficiency, Technology, and Risk Management and Deregulating Property-Liability Insurance: Restoring Competition and Increasing Market Efficiency. He is a co-editor of the Journal of Banking and Finance and Associate Editor of nine other journals. Dr. Cummins is a past-president of the American Risk and Insurance Association.


STEPHEN DIACON

Stephen Diacon is a professor of insurance and risk management at the Nottingham University Business School. He has written a number of books and academic articles on insurance and is a member of the editorial board of the Geneva Papers on Risk and Insurance.


PAUL FENN

Paul Fenn is the Norwich Union Professor of Insurance Studies at Nottingham University Business School. His background is in applied microeconomics, particularly in relation to the interaction between law, health, and insurance. He has written or edited four books and numerous articles in peer-reviewed journals (including the Economic Journal, Journal of Law and Economics, and the Journal of Health Economics) on the general themes of liability insurance, health economics, and the economics of workplace risk. He has recently coordinated research projects on these issues for the UK Department of Health and the Department of Constitutional Affairs.


JOHN F. GARVEY

John F. Garvey is a Junior Lecturer in Risk Management and Insurance at the Kemmy Business School at the University of Limerick. His area of specialization is in modem portfolio theory, volatility modeling, and risk management. He has a B.A. in English and Economics and holds a M.A. in Applied Economics and a M.Sc. in Investment and Treasury. He is currently working on his Ph.D.


Authors' Biographies xix

LOFTIN GRAHAM

Loftin Graham is a Huebner Fellow and fourth-year Ph.D. student in the Department of Insurance and Risk Management at the Wharton School of the University of Pennsylvania. His research interests include various life and health insurance topics, actuarial science, and insurance economics.


BRIAN GREENFORD

Brian Greenford is the director of the risk research group at the University of Limerick and the past Assistant Dean of Academic Affairs at the Kemmy Business School at the University of Limerick. His fields of interest are holistic risk management, psychology and sociology of risk and law, and personal injury claims from a comparative approach. He is the author of "Claims Management: Irish Law and Practice" and "Equine Risk Management." He has published numerous refereed articles on comparative claims management and compensation culture as well as various reports for the Irish and UK governments on personal injury claims and competition in the Irish insurance industry. He is a past president of the Limerick Insurance Institute.


MICHEL GUIGUIS

Michel Guirguis is a researcher at Bournemouth University, UK. His research interests currently lie in the area of closed-end funds. Dr. Guirguis's doctoral thesis was entitled "A Multifactor Model of Investment Trust Discounts: A Comparative Study of UK Investment Trusts and US Closed-End Funds."


PHILIP HARDWICK

Philip Hardwick holds the Chair of Financial Services at Bournemouth University, UK and is a Visiting Professor at the Warsaw University of Insurance and Banking and at the Academy of Humanities and Economics in Lodz in Poland. Dr. Hardwick has published more than twenty refereed journal articles and is the author of several books, including a successful economics textbook and two macroeconomics books concerned with unemployment and inflation. His main teaching and research

XX International Insurance Markets

interests currently lie in the areas of efficiency measurement in the financial services sector, international trade in financial services, and quantitative research methods.


ROBERT HARTWIG

Robert P. Hartwig is the senior vice president and chief economist for the Insurance Information Institute. Hartwig previously served as director of economic research and senior economist with the Boca Raton, Florida-based National Council on Compensation Insurance (NCCI). He has also worked as senior economist for the Swiss Reinsurance Group in New York and as senior statistician for the U.S. Consumer Product Safety Commission in Washington, DC. Dr. Hartwig is a member of the American Economic Association, the American Risk and Insurance Association, and the National Association of Business Economics. Hartwig received his Ph.D. and M.Sc. degrees in economics from the University of Illinois at Urbana-Champaign. He received a B.A. in economics fi-om the University of Massachusetts at Amherst.


THOMAS HOLZHEU

Thomas Holzheu is a senior economist and deputy head of the New York office of Swiss Re's Economic Research and Consulting Unit. His fields of specialization include North American insurance and global reinsurance markets. Dr. Holzheu researches and publishes on market developments and economic and regulatory factors affecting insurance markets. In addition, he supports Swiss Re's strategic planning and internal consulting on new products. He authored several Sigma studies including "Measuring Underwriting Profitability of the Non-Life Insurance Industry" (5/2005), "Commercial Insurance and Reinsurance Brokerage - Love Thy Middleman" (2/2004), "The Economics of Liability Losses" (6/2004), and "The Picture of ART" (1/2003).

Email: Thomas Holzheu(5),swissre.com

Authors' Biographies xxi

STEPHANIE HUSSELS

Stephanie Hussels is a full-time lecturer in economics at the University of Bradford School of Management, UK. Her research interests include measuring efficiency and productivity, the European insurance industry, frontier methodologies, and financial services within overall economic development.


JULIAN JAMES

Julian James was appointed Director, Worldwide Markets at Lloyd's in December 2000. He is responsible for all Lloyd's commercial activities outside the UK, including the management of its 72 trading licenses. Additionally, he oversees Lloyd's global branding and market development including communications, media relations, and government affairs. Mr. James is an Associate of the Chartered Insurance Institute and is a Chartered Insurance Practitioner. He is a board member of the Lloyd's Community Programme and until January 2005 was a board member of the General Insurance Standards Council. He is currently Vice President of the Chartered Insurance Institute in the UK.


PAUL J. M. KLUMPES

Paul J. M. Klumpes is a Professor of Accounting at the Tanaka Business School of the Imperial College, UK. His fields of specialization include financial reporting and performance measurement related to pensions and insurance in various markets. Dr. Klumpes has published more than thirty refereed journal articles on these and related topics. His recent publications on these topics have appeared in the Journal of Business, Geneva Papers on Risk and Insurance, and Journal of Banking and Finance. He is a consultant to Charles River Associates and Gerson Lehrman Group. He is also a qualified Australian CPA and is a member of the American Accounting Association.


xxii International Insurance Markets

ROMAN LECHNER

Roman Lechner is Senior Economist on Swiss Re's Economic Research and Consulting team. His many fields of specialization include global reinsurance, the London market, and property and casualty insurance in general. He is the author of several Sigma studies including "Measuring Underwriting Profitability of the Non-Life Insurance Industry" (5/2005), "Commercial Insurance and Reinsurance Brokerage - Love Thy Middleman" (2/2004), "The London Market in the Throes of Change" (3/2002), and "The Global Reinsurance Market in the Midst of Consolidation" (9/1998).


ANDREA LEVY

Andrea Levy is an affiliate lecturer at the Instituto de Gestao de Riscos Financeiros e Atuariais (lAPUC). He has a doctorate in automation technology from the Universite Paul Sabatier -Toulouse. He has worked in recent years for insurance companies both as a CFO and as a COO. In the 1970s, he worked mainly for property and casualty companies, but more recently focuses on life insurance, pension plans, and capitalization companies. At the present time, he works in mergers and acquisitions in the insurance market providing analysis and evaluation for the embedded value of life portfolios and solutions for reinsurance. Finally, he is an active member of organizations that represent the insurance industry, mainly regarding market regulation.


RAIMOND MAURER

Raimond Maurer is Professor of Investment, Portfolio Management, and Pension Finance at the Goethe University of Frankfurt. His fields of specialization include asset management, institutional investors, and pension finance. He is the academic chairman of the International Actuarial Association Financial Risks Section (AFIR) of the German Actuarial Society, member of the International AFIR-Committee, and member of the Pension Research Council Advisory Board at the Wharton School of the University of Pennsylvania. Dr. Maurer has published four books and more than thirty refereed articles.


Authors' Biographies xxiii

LOUISE MORRIS

Louise Morris is a Ph.D. student at the Graduate Center of Business at the University of Limerick where she is researching the management of risks related to the use of genetic testing by life insurance companies with Dr. Brian Greenford. Her research is funded by the Irish Research Council for the Humanities and Social Sciences. Her research interests are life insurance and risk management. She is a member of the Risk Research Group.


MARTIN MULLINS

Martin Mullins is a Lecturer in Risk Management at the University of Limerick and the Course Director for the B.A. International Insurance and European Studies. He is a member of the Risk Research Group. Dr. Mullins research focuses on political risk, risk management in the public sector, and the construction of public policy in post-conflict societies. He is the author of the book In the Shadow of the Generals and has published articles and book chapters on political risk and international bond markets.


ALLI NATHAN

Alii Nathan is a Professor of Finance with teaching and research interests in the areas of international finance, financial institutions and markets, and risk management and regulation of banks and insurance companies. She graduated fi-om Queen's University in Canada and has taught at the University of Calgary, Canada and at Nyenrode University, the Netherlands. Dr. Nathan is also a visiting professor at the Amsterdam Graduate School of Business at the University of Amsterdam, the Netherlands. She is currently on the faculty at Providence College in the US. Her research on the structure, conduct, performance, and efficiency of banks and insurance firms has been published in several academic and professional journals.


CHRIS O'BRIEN

Chris O'Brien is director of the Centre for Risk and Insurance Studies (CRIS) at Nottingham University Business School in England. Prior to joining CRIS in 2000, he had 27 years of experience in the life insurance industry and was the chief actuary of a major life insurer. His interests include the financial management of, accounting

xxiv International Insurance Markets

in, and regulation of insurance companies as well as the role of actuarial management in life insurers. He is a Fellow at the Institute of Actuaries and was President of the Manchester Actuarial Society from 1999-2000.


TAISHI OKADA

Taishi Okada is an associate professor of Kwansei Gakuin University, Japan. He has been appointed as a visiting scholar at City University. He graduated from Osaka City University and obtained his MBA from Kobe University. His fields of specialization include insurance regulation, risk management, and corporate governance. He has published papers in insurance and business journals including the Journal of Insurance Science and the Journal of Business Administration.


LIAM O'MEARA

Liam O'Meara is a post-graduate research student at the Graduate Centre of Business at the University of Limerick. He is currently completing his master's thesis entitled "An Analysis and Review of the Methods of Financial Protection Available against Flooding in Ireland" under the supervision of Dr. Brian Greenford. His main areas of interest include risk management of the occurrence of weather risks and natural disasters and life insurance. He is a member of the Risk Research Group.


ALFRED OOSENBRUG

Alfred Oosenbrug is a former professor with chairs in the economics of the financial services industry and in the accounting for financial services organizations. Dr. Oosenbrug is a business economist, a certified accountant, and an actuary. He graduated at the Faculty of Law of the University of Leiden. Currently, he is a consultant in the financial services industry. Dr. Oosenbrug has published more than thirty books and some four hundred articles with respect to accounting, insurance, pensions, and financial services. He is a past-president of the Dutch Institute of Actuaries and a former member of the executive board of a middle-sized insurance group.


Authors' Biographies xxv

MARIA RUBIO-MISAS

Maria Rubio-Misas is Associate Professor of Financial Economics and Accounting at the University of Malaga (Spain). Her research areas include financial institutions and the economic analysis of efficiency and productivity in the insurance industry. Dr. Rubio-Misas has published refereed journal articles in publications such as the Journal of Banking and Finance and the Journal of Money, Credit, and Banking. She has served as a Visiting Scholar in the Department of Insurance and Risk Management at the Wharton School of the University of Pennsylvania.


CLAIRE E. SHERMAN

Claire E. Sherman is a lecturer and Ph.D. student at the University of Adelaide, Australia. Claire teaches within the field of business finance and previously worked in the public sector, banking, and brokerage industries. She completed her Canadian Securities Course in 2002. Claire is also a lecturer in Marketing Communications and provides a unique perspective of both marketing and finance streams, with which she hopes to conduct research relating to the marketing of finance.


TAPEN SINHA

Tapen Sinha is the ING Commercial America Chair Professor at the Instituto Technologico Autonomo de Mexico (ITAM) in Mexico City, Mexico. He is also a Special Professor at the School of Business of the University of Nottingham, UK. He has a Ph.D. in Economics fi*om the University of Minnesota. Dr. Sinha is the founder-director of the International Center for Pension Research, ITAM, and an Associate of the Centre for Risk and Insurance Studies at the University of Nottingham. He has published over one hundred papers and five books. Additionally, Dr. Sinha has been a consultant for a number of multinational companies and governments of different confinents.


BARBARA SOMOVA

Barbara Somova is a Ph.D. student at the Faculty of Economics and Business Administration of the Goethe University of Frankfurt, Chair of Investments, Portfolio-Management and Pension Finance. Her fields of specialization include institutional investors, valuation of insurance companies, and merger and acquisition

xxvi International Insurance Markets

activities in the insurance industry. Ms. Somova studied economics at the University of Hamburg, spent three years as a mergers and acquisitions analyst with Rothschild GmbH in Frankfurt and London and is currently working on her dissertation.


QIXIANG SUN

Qixiang Sun holds the C.V. Starr Chair of Risk Management and Insurance and is the Associate Dean of both Academic and International Affairs at School of Economics, Peking University, China. She is also the Chair of the Department of Risk Management and Insurance and the director of the China Centre for Insurance and Social Security Research. Dr. Sun is widely recognized as one of China's leading insurance scholars. Her academic work in insurance has been published in China's top insurance and economics journals as well as international insurance journals. Her textbook on insurance is the top-selling insurance textbook in China.


LINGYAN SUO

Lingyan Suo is a Ph.D. student in finance at the School of Economics of Peking University, China. Her recent research has focused on the development strategy of China's insurance industry and reform of China's Social Security system. She received her B.A. in Economics from Peking University in 2001.


BERTRAND VENARD

Bertrand Venard is the Professor of Management at Audencia School of Management in France and Sloan Research Fellow at the Wharton Business School of the University of Pennsylvania. He has received many distinctions for his research such as the Marie Curie Fellowship and the NATO Fellowship. He has published more than 40 academic articles. Before his academic career, he held an executive position in a French insurance company and was a senior consultant for PricewaterhouseCoopers. Furthermore, he held various visiting positions at the London Business School, Cambridge University, and the Budapest University of Economics and Public Administration. His research interests are in the fields of insurance, finance, and international management.

Email: [email protected] and [email protected]

Authors' Biographies xxvii

LUIGI VENTURA

Luigi Ventura is a professor of microeconomics and econometrics at the Faculty of Statistics of the University of Rome "La Sapienza." His research interests include individual choice under risk and uncertainty, measures of risk aversion, prudence and time preference, insurance and allocations with incomplete markets, and the analysis of some testable implications of insurability. In all these fields Dr. Ventura has published various journal articles, both theoretical and applied, in international refereed journals and two books.


ROBERT W. VIVIAN

Robert W. Vivian is the Professor of Finance and Insurance at the University of the Witwatersrand, South Africa. He spent the first decade of his career as a professional electrical engineer and the second as a director of a risk management company. In 1990, the South African insurance industry funded the USA Chair of Insurance and Risk Management and he was appointed to this position. Since then, he has authored four books and published several articles in refereed journals. He is the past President of the Economic History Society of Southern Africa.

Email: vivianr@,sebs.wits.ac.za

DAMIAN WARD

Damian Ward is a senior lecturer in economics at the Bradford University School of Management. His research interests include the role of financial services within economic development as well as the efficiency, governance, and distribution systems employed by insurance companies.


CLAIRE WILKINSON

Claire Wilkinson, is Vice President, Global Issues for the Insurance Information Institute. She previously served as the US bureau chief of the London, UK-based trade newspaper Insurance Day and has more than 10 years of experience in writing on the insurance industry. Prior to her assignment to New York, she was deputy editor of Insurance Day in London. She has also worked as a reporter at the Financial Times newsletters. Ms. Wilkinson received her M.A. in Anglo-American Literary Relations from University College, UK. She also received her B.A. in

xxviii International Insurance Markets

English and American Literature from the University of Warwick and has a postgraduate diploma in journalism from the University of Wales at Cardiff.


XIAOYING XIE

Xiaoying Xie is an assistant professor of finance at California State University at FuUerton. Dr. Xie received her Ph.D. degree in Risk Management and Insurance from the Wharton School of the University of Pennsylvania in 2005. Her current research interests focus on the areas of mergers and acquisitions, financial integration, economies of scale, productivity and efficiency, and insurance economics.


NOBUYOSHI YAMORI

Nobuyoshi Yamori is a professor at Nagoya University, Japan. He has been appointed as a visiting scholar at several institutions including Columbia University and the Federal Reserve Bank of San Francisco. He graduated from Shiga University, received his M.A. from Kobe University, and obtained his Ph.D. from Nagoya University. He has published many papers in international banking and financial journals such as the Journal of Banking and Finance, the Journal of Financial Research, and the Journal of Risk and Insurance. He also serves as an editors of several professional journals including the International Journal of Business.


WEI ZHENG

Wei Zheng is an Associate Professor and Vice Chair of the Department of Risk Management and Insurance at the School of Economics, Peking University, China. His academic focus has been on pension, life and health insurance, and insurance law. Dr. Zheng has published more than ten academic journal articles and many newspaper articles. He published a book named China's Social Pension System: Institutional Change and Economic Effects. Dr. Zheng serves as Secretary General of the China Center for Insurance and Social Security Research, Peking University. He is a member of the editorial board of the Asia-Pacific Journal of Risk and Insurance.


Authors' Biographies xxix

RALF ZURBRUEGG

Ralf Zurbruegg is a Professor of Finance within the School of Commerce at the University of Adelaide. He has taught economics and finance at several universities around the world, as well as published over forty pieces of work, mainly in the area of international finance. His work has appeared in a number of international finance journals including the Journal of Empirical Finance, Journal of International Money and Finance, Journal of Futures Markets, Journal of Risk and Insurance, and the Geneva Papers in Risk and Insurgnce. He is also the joint editor of the International Journal of Managerial Finance hosted by Emerald Publishing.


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