Browsing by Subject "insurance"

Now showing 1 - 5 of 5
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    Developing Aggregate Loss Models For Obscure Insurance Exposures
    (2020-08) Albright, Robert
    In this paper we will examine how to apply parametric modeling with some simulation techniques to generate potential frequency and severity of claims distributions. The paper outlines the general theory of selecting appropriate statistical distributions for claims data and in maximizing model accuracy or fit. Two specific exposures, critical customer loss and supply chain disruption loss, are used as illustrations. From these distributions, an aggregate loss model is then proposed. The paper will discuss: 1. Possible ways to develop claims data from available market information for obscure insurance risks with application to specific examples. 2. Outline of the theory of parametric estimation. 3. Applying primarily parametric techniques to optimize the ‘fit’ of the estimated distributions for severity and frequency of claims distributions. 4. Development of possible aggregate loss models for the two specific exposures. 5. Proposed areas for further study.
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    Essays on Land Markets and Development
    (2022-05) Fonseca Rodrigues, Joao
    This dissertation consists of three chapters. In chapter 1, I provide a cross-country perspective on the prevalence of market restrictions and review the literature that investigates the misallocation costs of these policies. In chapter 2, I summarize the microdata that I use in the analysis of customary land in Malawi. In this chapter, I also estimate the main objects that are used as inputs into an indirect inference exercise in chapter 3. In chapter 3, I investigate whether replacing use it or lose it land institutions with land markets triggers productivity growth and reallocation of labor towards non-agriculture. I build a model where households face risk in non-agriculture and maintain rights to agricultural land via the principle of use it or lose it. When markets are incomplete but land is easily accessible, households can partially self-insure by returning to agriculture when non-agricultural opportunities fail. As land becomes less accessible, productive farmers disproportionately forgo profitable opportunities in non-agriculture to limit their exposure to uninsurable risk. I use moments from the Malawi microdata to estimate key model parameters via indirect inference. With only 1.3% of landless households accessing land each year in Malawi, the prospect of long landless spells pushes productive farmers to stay in agriculture. I use the model in a policy experiment where land is privatized and landholders at the time of the reform earn income on the land. While the policy yields an increase in aggregate output of 28%, patterns of entry and exit attenuate the productivity gains in agriculture by 16%. Productivity grows by 22% in agriculture and 15% in non-agriculture. Although all households benefit from higher productivity in agriculture, the welfare gains for landless households are on average 10 times lower than those of landowners.
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    Experimental Evidence on the Effect of Insurance on Producer Behavior in the Face of Price Risk
    (2019-08) Kadam, Aditi
    Production risks can be caused by indirect factors such as weather, and direct factors such as price. Failure of constructing resilient financial markets to mitigate these price risks, can cause damaging and lasting impacts to the economy. This study contributes to the literature on risk and uncertainty by testing the effect of insurance, both full and partial, on producer behavior in the face of price risk. I use an experimental setting to address the relationship between behavior under price risk uncertainty, and how that behavior is shaped in the presence of insurance. I find that participants do not adjust their production choices in situations of price risk. When provided with insurance, they do increase production significantly, and reduce it when it is unavailable. The positive effect of full insurance, is higher than that of partial insurance. By comparing the effect of partial, and full insurance, I find evidence for moral hazard.
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    Impact of Exempting the Recording of Low Level Speed Violations in Minnesota
    (Center for Transportation Studies, University of Minnesota, 2015-02) Douma, Frank; Tilahun, Nebiyou; Spencer, Peck
    This report covers work done to respond to a request from the Minnesota State Legislature that was included in amendments to Minn. Stat. § 171.12, passed in the 2012 Legislative session. Specifically, the report examines the impacts of Minnesota Statute § 171.12, Subd. 6, better known as the “Dimler Amendment,” which calls for certain low-level violations of certain speed limits to not be entered on the violator’s driving record. The statute called for a report from the Commissioners of Transportation, Public Safety and Health on the impacts of increasing the Dimler qualifying range from 5 mph to 10 mph in 60 mph speed zones on travel reliability, travel efficiency, safety, and privacy. Based on the findings of these analyses, the impacts of the 2012 changes were negligible. More significantly, however, in the course of this project, the researchers came upon findings that led them to question the efficacy of the law itself. The public appears to not be aware of the law’s existence, which may be compounded by the fact that the law lays on top of Minnesota’s already complex speed laws and regulations. Further, the exemptions may be benefiting a small, but significant number of repeat offenders, and complicating regulation of commercial vehicle drivers.
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    Micro Farm Insurance Case Study
    (2024-02-28) Pesch, Ryan; Zeman, Kathy
    This report summarizes the experience of 15 Minnesota farm operators who assessed how well the micro farm program fits their risk management needs on their operation. Micro Farm is a new whole-farm revenue insurance program from USDA’s Risk Management Agency (RMA).