July 2004

International Association for the

Insurance Economics
Information for Risk and Insurance Economists
Study of Insurance Economics

Geneva Table of Contents

PAGE

Association I. EDITORIAL
This is the 50th issue of the Geneva Association Information
1

Newsletter on Insurance Economics. It was the first of its kind to

Information be introduced almost 30 years ago and served as a role model for
similar newsletters that cover other parts of the research activities
of The Geneva Association and its networks. We revisit the reasons
Newsletter for its creation.

II. ARTICLES 2
Patrick M. Liedtke discusses the impact of the financial reporting
system on the cost of capital for insurance companies. This is a
fundamental indicator of competitiveness, not only within the insurance
sector but also for insurance in comparison to other businesses that are
competing for investments in the capital markets.

III. INSURANCE ECONOMICS NO. 1 NOVEMBER 4, 1974 5

Going back through time, we take a closer look at the topics that moved the
insurance researchers back in 1974. In some areas huge advancements have
taken place in the past 30 years. And yet, some of the titles could easily be
mistaken as current research headings as we still have to find solutions to some
of the problems that insurance has been facing for decades.
IV. ANALYSIS OF ARTICLES AND REFERENCES IN THE GENEVA PAPERS 9
THEORY, PART 2
A total of 142 papers and 2892 references were analysed in the Geneva papers
Theory from Vol.15-No.1/ 1990 until Vol.27-No.2/ 2002. Here we present the most
referred papers, the most cited publications and the most used references.
12
V. 31ST EGRIE: PROGRAMME
14
VI. WRIEC 2005 ANNOUNCMENT AND WRIEC PROGRAMME

VII. CONVENTIONS SUPPORTED BY THE GENEVA ASSOCIATION 16

VIII. CALLS FOR PAPERS AND SUBMISSIONS 23

IX. OTHER CONVENTIONS AND SEMINARS 24

X. GENEVA ASSOCIATION PUBLICATIONS 26

XI. SCHEDULE OF CONFERENCES ORGANISED BY THE GENEVA ASSOCIATION 28

Download this newsletter for free from www.genevaassociation.org/newsletters_menu.htm

The Geneva Association General Secretariat 53 route de Malagnou CH - 1208 Geneva

Tel. +41-22-707 66 00 Fax +41-22-736 75 36 info@genevaassociation.org www.genevaassociation.org
The Geneva Association Insurance Economics N 49 / January 2004

The Geneva Association

The International Association for the Study of Insurance Economics, or by its short name The Geneva
Association, is a unique world organisation formed by a maximum of 80 chief executive officers from the
most important insurance companies in the world (Europe, North and South America, Asia, Africa and
Australia). Our main goal is to research the growing importance of worldwide insurance activities in all
sectors of the economy. We try to identify fundamental trends and strategic issues where insurance
plays a substantial role or which influence the insurance sector. In parallel, we develop and encourage
various initiatives concerning the evolution in economic and cultural terms of risk management and
the notion of uncertainty in the modern economy.
The Geneva Association also acts as a forum for its members, providing a worldwide unique platform for
the top insurance CEOs. We organise the framework for our members in order that they may exchange
ideas and discuss key strategic issues, especially at the General Assembly where once per year over 50
of the top insurance CEOs gather. The Geneva Association serves as a catalyst for progress in this
unprecedented period of fundamental change in the insurance industry and its growing importance for
the further development of the modern economy. It is a non-profit organisation.

Secretary General and Managing Director: Mr Patrick M. LIEDTKE

Vice Secretaries General: Mr Walter STAHEL (Risk Management)
Prof. Gerry DICKINSON (Finance & Insurance)
Heads of Research Projects: Dr Christophe COURBAGE (Health & Ageing)
Dr Knut HOHLFELD (Progres)
Ms Genevive REDAY-MULVEY (4 Pillars)
Special Advisor: Dr Orio GIARINI

The Research Programme on Risk and Insurance Economics

The research programme on risk and insurance economics comprises the theoretical and academic
activities of our organisation.
It is dedicated to make an original contribution to the progress of insurance through promoting studies of
the interdependence between economics and insurance, to highlight the importance of risk and
insurance economics as part of the modern general economic theory, to detect and define special aims
for research programmes in risk and insurance economics, to stimulate and support academic and
professional research work in risk and insurance economics throughout the world, and to diffuse
knowledge and the results of research in risk and insurance economics world-wide.
Anyone wishing to be included on the Newsletter mailing list should visit our webpage at
www.genevaassociation.org or contact the Geneva Association Secretariat at:
Tel.no: 0041-22-707 6600, Fax 0041-22-736 7536 or E-mail: info@genevaassociation.org

The Geneva Association Newsletter Insurance Economists, No. 50, July 2004
Newsletter for the European Group of Risk and Insurance Economists

This Newsletter for Risk and Insurance Economists is published biannually by the Geneva Association as an
information and liaison bulletin to promote contacts between economists at universities and in insurance and
financial services companies with an interest in risk and insurance economics. Any suggestions concerning the
content or layout of the newsletter are welcome. Please notify us if you are interested in receiving this
publication regularly.

Printed copies: 4900 copies. Unrestricted circulation. Free of Charge.

Editor: Patrick M. Liedtke. Contact at the Geneva Association.
Layout & Production: Ariane Klein & Bernadette Curty

International Association for the Study of Insurance Economics, 2004.

ISSN: 1605-8259
The Geneva Association Insurance Economics N 50 / July 2004

I. EDITORIAL

50 Issues of the Geneva Association Information Newsletter on Insurance Economics

This is the 50th issue of the Geneva Association Information Newsletter on Insurance Economics. It was
the first of its kind to be introduced almost 30 years ago and served as a role model for similar
newsletters that cover other parts of the research activities of The Geneva Association and its networks.
The chief reasons for the introduction of this newsletter at the time were the following:
The newly founded European Group of Risk and Insurance Economists (EGRIE) needed a joint
reference point and information sharing mechanism for issues of interest to the group.
(The Insurance Economics Newsletter carries to this day the subtitle Newsletter for the European
Group of Risk and Insurance Economists)
The Geneva Association, then as founding institution of EGRIE and still today as guardian angel
and partner, found it useful as tool to stimulate the interest of researchers.
Articles, and to a lesser degree editorials, could open up and advance discussions on theoretical
issues linked to insurance.

From its humble beginnings, when only several dozen copies were produced at The Geneva Association
with only the most rudimentary techniques available at the time to a small organization like ours, until
today, when about 5000 hardcopies and several thousand electronic copies find their way onto the
desks of our readers, the Insurance Economics Newsletter has been the backbone of the information
flow between The Geneva Association and the insurance academia. A reproduction of the first
newsletter, dated 4 November 1974, can be found in chapter 3 of this issue. Due to the lack of quality of
the only existing copy of the newsletter at The Geneva Association, it was unfortunately not possible to
include a photographic reproduction of the original, but Ms Ariane Klein has done an excellent job in
putting together a version that is very close to the original. Although one has to admit that, having seen
both the historic and the reproduction, the latter looks of course much too new.
It is certainly of more than just historic interest to take a closer look at the topics that moved the
insurance researchers back in 1974. In some areas huge advancements have taken place in the past 30
years. And yet, some of the titles could easily be mistaken as current research headings as we still have
to find solutions to some of the problems that insurance has been facing for decades.
Where are we heading? One of the most important developments on an organizational level is certainly
the World Risk and Insurance Economics Congress that will take place for the first time from 7 to 11
August 2005 in Salt Lake City in the US. The American Risk and Insurance Association (ARIA), Asia-
Pacific Risk and Insurance Association (APRIA), European Group of Risk and Insurance Economists
(EGRIE), and The Geneva Association (GA) are jointly organizing this landmark event. It is open to all
persons academics, industry executives and professionals, and government officials who share an
interest in promoting education and research in the broad areas of risk and insurance. The purposes of
the Congress are to stimulate corporate awareness and interest in risk-related research and to provide a
forum for networking among academics and industry and government professional worldwide. The
Congress will therefore not only provide a unique chance for insurance academics and researchers from
all over the world to get together, but it should also tie in the professional establishment, hopefully
creating stronger ties for the future that will allow for increased collaboration and a better exchange of
ideas and information.
In this issue we also discuss the question of insurance accounting and the cost of capital, touching upon
two fields that will see much research in the future. As the industry and academe evolve, so will this
newsletter. We hope that it has been able to provide you with interesting topics in the past 30 years and
we are already looking forward to a grand celebration when the 100th issue will be published perhaps
in the year 2029 if we continue the current trend of two issues per year.

Patrick M. Liedtke
Editor

1
The Geneva Association Insurance Economics N 50 / July 2004

II. Articles

Insurance Accounting and the Cost of Capital

By Patrick M. Liedtke1

This article is based on one chapter of the second report by Gerry Dickinson and Patrick M. Liedtke to
The Geneva Associations Accountancy Task Force, which provides an empirical analysis of the views of
insurance companies on the likely impact that an international financial reporting standard based on a
full fair value methodology, if it were to be introduced, would have on a number of their key corporate
policy areas. This research report is a sequel to the earlier report: The Search for an International
Accounting Standard for Insurance. Both documents can be downloaded for free from our website
www.genevaassociation.org.
During the preparation of the report, we had numerous discussions on one of the key issues that
insurers feel would make a great difference to their business: the impact of the financial reporting system
on their cost of capital. This is of course a fundamental indicator of competitiveness, not only within the
insurance sector but perhaps even more importantly for insurance in comparison to other businesses
that are competing for investments in the capital markets.
There are several reasons why insurance companies require a certain amount of capital to operate. Most
importantly, insurance companies need to hold capital to absorb the risks that they assume. There are
also regulatory requirements on insurers to hold capital to reduce the probability of insolvency and these
capital adequacy rules often require insurers to hold more capital than management, and their
shareholders, consider necessary. Hence capital is a key constraint on the supply of insurance. If the
cost of capital is high, this will increase the cost of insurance and/or discourage the level of supply.
Moreover, since there are substitute products to insurance, including ART and self-insurance, if the cost
of capital for insurers is higher than that facing these alternative suppliers, insurers will be less able to
compete.
If capital markets are fully information efficient, the way that companies report their financial performance
should not matter. Capital market participants would determine the share prices of insurance companies,
and hence their cost of equity capital, based on expected growth and stability of future earnings
streams, and other relevant factors. The available evidence suggests that capital market participants are
risk averse and so companies with a higher level of expected (relative) volatility in their earnings, for the
same growth of earnings, face a higher cost of capital.
One of the key arguments put forward by proponents of a new financial reporting standard is that the
current way in which companies report on their results is neither objective nor transparent enough.
Transparency is a more general requirement of financial statements, as it lies at the heart of disclosure
itself. The information contained in published accounts should provide users with as much relevant and
reliable information as they need to make their decisions, within appropriate cost and competition
considerations; financial statements should not be opaque or hard to understand, and they should not
hide any material information that the users need to know. At the level of the capital market as a whole, a
high level of quality disclosure helps to ensure that markets operate efficiently and fairly; the overall cost
of capital should be lower and there would be less scope for asymmetrical information to distort the
pricing of securities.
The less transparent and objective a financial reporting system is, the more uncertainty it creates among
investors as to the capacity to generate future returns and their stability. Ceteris paribus, a new rule that
increases the transparency (or the objectivity) of financial reports, will reduce investor uncertainty and, in
a risk-adverse capital market, lead to a higher stock evaluation. Financial analysts spend a lot of their
time trying to predict future earnings per share and, as was confirmed during a series of interviews in

1
Secretary General and Managing Director of The Geneva Association

2
The Geneva Association Insurance Economics N 50 / July 2004

New York and London with a number of the leading analysts of the insurance industry, the predictability
and constancy of future earnings is a key factor in their recommendations.
Let us examine the impact of introducing a full fair value approach in insurance accounting. If the
volatility in profit and loss accounts (income statements) and balance sheets under a full fair value
approach reflected real volatility, this volatility would be factored into share prices in an information
efficient capital market. Since some of the uncertainty would be eliminated, the stocks should be traded
higher than under the current reporting system. However, if a full fair value reporting system provides
information noise unrelated to real volatility of the underlying cash flows, as could well be the case
where there are highly subjective estimates of market prices for non-traded insurance liabilities and/or
the underlying asset-liability relationships are not accurately captured, then this could lead to the
mispricing of shares, even in an information efficient stock market (with the exception of the strong form
of market efficiency). And the case for assuming the information efficiency of capital markets is not as
compelling as it once was, in the light of asset prices bubbles. Hence there is a theoretical case for
arguing that reported volatility will lead to lower share prices and a higher cost of capital.
Consequently, it is from a theoretical viewpoint well possible that changes to the financial accounting
system decrease the cost of capital as the true volatility is better captured by the new rules. At the same
time, however, they could well have the opposite effect too, i.e. increasing the cost of capital, as
additional artificial (reported) volatility is introduced.
It is very difficult to predict the real-world effect of a change of the accounting system. In order to address
this issue, The Geneva Associations survey sought to ask senior managers of insurance companies if
they considered that the higher volatility in earnings, that would arise under a full fair value reporting
system, would cause their cost of capital to increase or decrease or have little or no effect. These are
clearly opinions, unlike other questions in the survey which relate to their own policy decisions and
hence have a firmer basis. However, as senior management in insurance companies are close
observers of capital markets as major institutional investors, their opinions should carry some weight,
even though no definitive conclusions can be drawn from their statements. Clearly, whether the cost of
capital might change or not is an empirical question, requiring more detailed analysis.

Figure 1: Perceived impact of more volatile reported earnings on cost of capital

50% 45.7%
41.9% 41.9%
40% 37.1%
Life
30% Non-life

20% 17.1% 16.1%

10%
0.0% 0.0% 0.0% 0.0%
0%
Major Significant Little or no Significant Major
increase in increase in effect decrease in decrease in
cost of cost of cost of cost of
capital capital capital capital

3
The Geneva Association Insurance Economics N 50 / July 2004

Non-
Life life
Major increase in cost of capital 13 13
Significant increase in cost of capital 16 13
Little or no effect 6 5
Significant decrease in cost of capital 0 0
Major decrease in cost of capital 0 0
No. of responses 35 31

The responses are given in Figure 1 and the table immediately following it. The responses were divided
into life and non-life operations, even for companies writing both classes of insurance, since the cost of
capital might differ for life and non-life. Close to 83% of life insurers considered that the cost of capital
would rise, while 17% considered it would not change much. There was a similar pattern of responses
for non-life insurers, with about 84% viewing that the cost of capital would rise and 16% viewing that
there would be little or no effect. No company thought the cost of capital would fall. Thirty-seven per cent
of life insurers and 42% of non-life insurers perceived that there might be a major increase.
Most companies considered that the stock market did not like volatility in reported earnings and would
demand an extra risk premium, thus increasing the cost of capital. Two contributing factors were
advanced for this: (i) much of the volatility of reported earnings of insurance companies, especially for
their life operations, would be spurious in view of the long term nature of insurance; (ii) companies in
other industries, including commercial banks, were likely to be allowed to continue reporting their
earnings on a deferral and matching basis, and hence an unlevel playing field would be created.
In addition, it was observed that a fair value reporting system was more likely to cause insurers to raise
capital at the wrong time, i.e. when it was more costly. This was based on the following scenario that
was advanced by one respondent. A temporary fall in asset prices, especially if accompanied by an
increase in the fair value on insurance liabilities induced by the same negative sentiment in the market,
would depress the reported equity capital level of an insurer. As a result the insurer could be forced to
raise new capital in these depressed stock market conditions either due to pressure from insurance
supervisors or rating agencies, or to restore confidence with brokers, corporate consumers and other
insurance market participants.
One of the reasons why the proposed full fair value methodology is running into resistance from the
insurance sector is that companies believe that any positive effects are far outweighed by the negative
ones. As one US reinsurer said: There would be a major increase in the cost of capital because of
artificial volatility. Any future solution for the new financial reporting system should address this issue.

* * * * *

Free Download
Two reports of The Geneva Association on insurance and international financial reporting standards:
1. Accountancy Task Force I The Search for an International Accounting Standard for Insurance,
published in February, 2003
Download from http://www.genevaassociation.org/ATFReport.htm
2. Accountancy Task Force II
Impact of a Fair Value Financial Reporting System on Insurance Companies A Survey,
published in June 2004
Download from http://www.genevaassociation.org/ATFReport.htm

4
The Geneva Association Insurance Economics N 50 / July 2004

III. Insurance Economics No. 1 November 4, 1974

Association de Genve
ASSOCIATION INTERNATIONALE POUR LETUDE DE LECONOMIE DE LASSURANCE Newsletter

News Informations Mitteilungen n. 1

November 4, 1974
FOR RISK AND INSURANCE ECONOMISTS POUR LES ECONOMISTES DE LASSURANCE
8, CHEMIN RIEU, 1208 GENVE TEL.022/470938 TELEX:23358 TELEGRAMME: ECOSUR GENVE

Following the suggestions made to the first Conference of European Insurance

Economists held in Geneva in June 1974, this newsletter will be issued every
time we dispose of valuable information in the following main areas :
1. University economic research in insurance related subjects.
2. Insurance economics teaching and programmes in universities.
3. General Information.
English, being the language known to all participants, will be used for our
comments and for some partial translations. Due to our limited human and
financial resources most of the texts available in French and German will be
distributed in their original language. Texts in other languages will be
summarised.
Some of the information below was gathered during the Geneva Meeting, and some
later.
Please inform us of any omissions or of any additional new information in the
two abovementioned areas which you feel should be diffused.

1. Insurance Economics Research

From Dr. R.L. Carter (Nottingham University) :
- A study on loss prevention is under way (with Mr.Doherty)
- A simulation study has been recently terminated on Risk Insurance and the
growing firm (by M.Atkins, N.Doherty and B.Carter)
- The effect of inflation on forms of nonlife insurance and EEC insurance
harmonisation are two more studies in which Dr.Carter is participating
- S. Diacon has started in October research on The influence of inflation on
the demand for insurance with the support of our Association and of an
Insurance Company in London
- A Handbook of Risk Management edited by Dr.Carter and Mr.Doherty was
published in October
- The valuation of Human life is under study by two fellows who received a
grant from a scientific organization.

From Dr. G.Dickinson (City University, London) :

- He is studying international aspects of insurance (movements of capital,
balance of payments problems) and the theory of risk (with the utilisation of
mathematical techniques) in order to simulate, among others, optimal levels of
retention
- Research on International Insurance Transactions: Their effects on the
balance of payments and economic welfare is due to start in December with the
support of our Association.

5
The Geneva Association Insurance Economics N 50 / July 2004

From Prof. D, Farny (University of Kln) :

- A long list of studies recently published and under way was reproduced in the
Etudes Universitaires sur lEconomie de lAssurance which our Association
published in March 1974. His work has a strong interdisciplinary aspect
(economics, law and mathematics) and is related to problems such as:
accounting, marketing, orgariisation and mechanisation of insurance companies,
banking and insurance relationships, concentration in insurance, insurance and
the European Communities, solvability and finance capital in an inflationary
economy, self insurance and captives, insurance of multinational companies,
insurance of risks having a mobile location
- Mr. M. Lipperheide is completing a study, which obtained the support of the
Geneva Association, on changes in risk, inflation and the rate fixing
policies of insurance companies
- A publication is due in 1975 on problems related to the chronological spread
of ris (the problem of technical reserves accounting over time units larger
than one year in order to control low frequency/high magnitude risks)
- Private versus public indemnity systems is the title of a thesis under way
concerning the relationship private vs. state insurance systems, by
Mr.Stckbauer
- Mr. Hitzig is doing a thesis on Self Insurance.

From Dr. M. Hailer (University of St.Gallen) :

- Research is starting in December, with the support of our Association, on
State, Insurance and Security
- Other research projects are under way on industrial insurance, individual
insurance needs and social security.

From Prof. E. Helten (University of Mannheim) :

- His work aims particularly at the utilization of mathematical approaches in
insuran economics and of models for practical purposes
- Studies with students concern : new risks, premium fixing, pollution
insurance, insurance markets, banking and insurance savings faced with
inflation, pensions and their financial effects on companies.

From Prof. D. Lambert (University of Lyon) :

- In 1974, 7 papers were written (of about 50 pages each) on the following
subjects:
Insurance and Social Security, the problems of suicide for insurance, property
loss insurance, car damages, the Euroassistance system, life insurance
markets, the medical expertise.
The following topics are under consideration : escalator clauses and
inflation, captive companies, social problems of insurance (social
consequences of the introduction of the computer, urbanisation trends and
insurance, savings alternatives).

From Prof. J.-J. Rosa (University of Orleans) :

- Enquiry on the financial departments of French insurance companies (due for
completion: December 1974)
- Insurance sector sub-model in a French financial quarterly model (started:
October 1974)
- Performance of insurance companies in Europe, comparing a study of USA made by
A,D.Little (probable start: January 1975)
- Competition and concentration in the insurance sector (thesis programme under
consideration)
- Assets choice of insurance companies: empirical analysis of the utility
function (start to be determined)
- Theoretical model of insurance companies: consequences on risk evaluation and
on the legal framework (start to be determined).

6
The Geneva Association Insurance Economics N 50 / July 2004

From Prof. L. Selleri (University Bocconi of Milan) :

- The following research programmes have been planned for 1974/75 and 1975/76:
planning in the insurance companies
- relationships between the monetary policy and investment policies of insurance
companies, particularly in Italy
- Insurance companies costs.

From Prof. C. Vila (Catholic University of Louvain) :

- He is dealing with studies concerning: risk selection and premium
determination, managing foreign exposures, insurance and the
financial/monetary problems.

Furthermore, the Geneva Association is now supporting (totally or partially)

the following University studies
- Interface between banking and insurance, a preliminary study by
Prof.J.R.S.Revell (University of North Wales, Institute of European Finance)
and Mr. J.E.Maycock;
- International monetary fluctuations and their effects on insurance, thesis
started by Mr. H.Louberg, University of Geneva;
- The social and economic relevance of social security, a Habilitation
thesis by Dr. A.Radner of the University of Linz;
- Machines Insurance in Europe by Prof. M.Chiarlo, University of Genoa.

2. Insurance teaching

As to this subject, Dr. Carter asks his European collegues to supply details
of degree structures (e.g. as per the following diagram), their syllabus(es)
for insura courses and any ideas they have for future developments. Below the
Nottingham degre structure

UNIVERSITY OF NOTTINGHAM

INDUSTRIAL ECONOMICS DEGREE

P
A Industrial Industrial Option Option or
R
Organisation Administration Dissertation
T
II
2
y Industrial Subsidiary Option Quantitative
e
Economics Subject Methods
a
r
s
P
A Industrial Subsidiary Subsidiary Statistics
R
Economics Subject Subject
T
I
1 yr.

7
The Geneva Association Insurance Economics N 50 / July 2004

Subsidiary subjects: Law, Business Accounting, Mathematics, Sociology,

Social Administration, Politics, Psychology,
Economics History, Geography, Languages, etc.

Options : Economics of Insurance, Economics of Marketing, Industrial

Relations, Economics of Transport, Regional Economics, Operations
Research, Management Accounting, Financial Accounting, and other
subjects available in the Economics Department.

Other available information on this subject will be communicated in our next

newsletter.

We indicate below some publications containing summaries of insurance courses in

universities :
- Insurance links with universities by R.T.D. Wilmot, University of Sussex
(limited to the U.K.). See also the B.I.A. University Letter;
- Enquiry of insurance studies in the economics and statistics faculties of the
Italian universities (published by Assicurazioni January 1974 in
Italian);
- Risk and Insurance Instruction in ~merican Colleges and Universities, by
R,Morton, 1972, published by the Huebner Foundation of the University of
Pennsylvania;
- A relatively outdated (1968) publication is also available on Insurance
courses in colleges and universities outside the United States published by
the McCahan Foundation, Bryn Mwar, Pennsylvania/USA.

3. Coming seminars
For the middle of February 1975, a small seminar is scheduled at the Geneva
Association office, in order to bring together insurance economists and
insurance practitioners.
The intermediate results of research sponsored by our Association on present
developments in risk and insurance management in European based industrial
companies will be presented and submitted for discussion, with the help of
papers on studies conducted on similar subjects.
In the summer of 1975 the second European insurance economists seminar will
be organized in Geneva.

* * *

8
The Geneva Association Insurance Economics N 50 / July 2004

IV. Geneva Papers - Theory: Analysis of Articles and References Part 2

Introduction
This analysis was carried out on the occasion of The Geneva Associations 30th birthday in the summer
of 2003. The results were presented at the 30th meeting of the European Group of Risk and Insurance
Economists in Zurich.
This analysis contains statistics based on reference information supplied by the 27 issues of the Geneva
Papers on Risk and Insurance Theory, Vol.15-No.1/1990 until Vol. 27-No.2/2002. The data were
classified by Geneva Papers Issues, Author, Year, Title and Publication.
A total of 142 papers and 2892 references were analysed.

The different tables that will be presented in this and the coming issue of the Geneva Association
Insurance Newsletter on Economics, supply information concerning the following questions:
Part 1: (see Insurance Economics no. 49 of January 2004)
1a) Who is the author with the highest number of published papers?
1b) Who is the most referenced author of this publication?
Part 2:
2a) Which article has been cited most often?
2b) In which publication (journal) can one find the most referred to papers?
2c) From which years date the most cited papers?

2a) Which article has been cited most often?

Top 10 most referred Papers

1. 17 times:
"Increasing Risk I: A Definition, 1970, Rothschild, M. & Stiglitz, .E.
2. 15 times:
"Optimal Insurance in Incomplete Markets,
1983, Doherty, N.A. & Schlesinger, H.
3. 13 times:
"The Dual Theory of Choice Under Risk, 1987, Yaari, M.
"Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect
Information, 1976, Rothschild, M. & Stiglitz, E.
4. 12 times:
"Aspects of Rational Insurance Purchasing, 1968, Mossin, J.
"The Design of an Optimal Insurance Policy, 1979, Raviv, A.
5. 11 times:
"Background Risk, Prudence, and the Demand for Insurance, 1992, Eeckhoudt, L.
"Precautionary Saving in the Small and in the Large, 1990, Kimball, M.S.
"Risk Aversion in the Small and in the Large, 1964, Pratt, J.W.
"Expected Utility Analysis Without the Independence Axiom, 1982, Machina, M.
6. 10 times:
"A Model of Insurance Markets with Incomplete Information", 1977, Wilson, C.
7. 9 times:
"Market Insurance, Self-Insurance, and Self-Protection", 1972, Ehrlich, I.
"Standard Risk Aversion, 1993, Kimball, M.S.
"The Pricing of Options and Corporate Liabilities, 1973, Black, F. )
8. 8 times:
"Equilibrium in a Reinsurance Market", 1962, Borch, K.
"On the Theory of the Competitive Firm Under Price Uncertainty, 1971, Sandmo, A.
"Optimal Insurance Without Expected Utility: The Dual Theory and the Linearity of Insurance

9
The Geneva Association Insurance Economics N 50 / July 2004

Contracts", 1995, Doherty, N. & Eeckhoudt, L.

"Proper Risk Aversion, 1987, Pratt, J.W.
"Self-Insurance, Self-Protection and Increased Risk Aversion, 1985, Dionne, G.
"The Interdependence of Individual Portfolio Decisions and the Demand for Insurance, 1983,
Mayers, D.
9. 7 times:
"A Theory of Anticipated Utility, 1982, Quiggin, J.
"Beneficial Changes in Random Variables Under Multiple Sources of Risk and Their Comparative
Statics, 1992, Meyer, J.
"Comparative Statics Under Multiple Sources of Risk with Applications to Insurance Demand",
1992, Dionne, G.
"Informational Equilibrium", 1979, Riley, J.
"Increasing Risk II: Its Economic Consequences", 1971, Rothschild, M.
"Uncertainty and the Welfare Economics of Medical Care, 1963, Arrow, K.
10. 6 times:
"Generalized Expected Utility Analysis of Multivariate Risk Aversion, 1989, Karni, E.
"Increases in Risk and Deductible Insurance", 1991, Eeckhoudt, L. & Schlesinger, H.
"Increases in Risk and in Risk Aversion, 1974, Diamond, P.
"Le Role des Valeurs Boursieres pour Ia Rpartition Ia Meilleure des Risques,
1953, Arrow, K.J.
"Martingales and Arbitrage in Multiperiod Securities Markets, 1979, Harrison, M.J.
"Risk Aversion and the Propensities for Self-Insurance and Self-Protection,
1990, Briys, E.
Risk Aversion in the Theory of Expected Utility with Rank Dependent Probabilities, 1987, Chew,
S.H. & Safra, Z.
"Risk Aversion with Random Initial Wealth, 1981, Kihlstrom, R. & Williams, S.
"Strong Increases in Risk and Their Comparative Statics", 1985, Meyer, J.
"The Effects of Shifts in a Return Distribution on Optimal Portfolios", 1990, Hadar, J.
"The Optimal Level of Deductibility in Insurance Contracts", 1981, Schlesinger, H.
"The Safety Loading of Reinsurance Preminus", 1960, Borch, K.
"The Theory of Syndicates", 1968, Wilson, R.
"Univariate and Multivariate Comparisons of Risk Aversion: A New Approach",
1986, Yaari, M.

Curiosity
A more recent paper with the potential to become a classic in the journal is "Optimal Insurance Without
Expected Utility: The Dual Theory and the Linearity of Insurance Contracts" (1995) by Neil A. Doherty &
Louis Eeckhoudt. Despite being written only in 1995, it already shows up in this table. If normal
development takes place, it will be higher on the list in the coming years.

2b) In which publication (journal) can one find the most referred to papers?

Top 10 most cited Publications 250 238

196
1. Econometrica 200

2. Journal of Economic Theory 150 114 110

100 90 84 80 77
3. Journal of Political Economy 68 60
4. American Economic Review 50

5. Geneva Papers 0
y
ry

w
s

ty
ce
w
a

e
rs
m

6. Quarterly Journal of Economics

ic
ri c

ie
nc
eo

ie

in
pe

an
m
no

ev
ev

ta
et

na
Th

no
Pa

ur
co

er

R
om

Fi

s
co

7. Journal of Finance
ic

nc
E

ic
a

In
ic
on

f
ev

fE

m
al

lo
om

U
d
no

no
Ec

ic

en

an
na
lo

d
on
t

an
co

co
ol

8. Journal of Risk and Insurance

G

ur
na

k
Ec
fE

fP

is

lE
Jo

sk
ur

fR
lo

lo

an

na
Jo

fR
lo
na

na

9. Journal of Risk and Uncertainty

ic

io
rly

lo
er

na

at
ur

ur

rte

na
Am

rn
Jo

Jo

ur

ur
ua

te
Jo

10. International Economic Review

Jo

In
Q

10
The Geneva Association Insurance Economics N 50 / July 2004

The most referred to journals were Econometrica, with 238 credits and the Journal of Economic Theory
with 195 credits. In third and fourth place are Journal of Political Economy and American Economic
Review with 114 and 110 references espectively.

Curiosity
The top ten journals only account for 2892 references, which amounts to just 39% of the total.
This underlines how broad the sources for relevant information are.

2c) From which years date the most cited papers?

Used References in Geneva Papers on Risk and Insurance

Number of cited papers by year of their original publication

200
194

180 182

159
160
147

140
142
124

120 120
108
106 117
115
105
100
98
81
80 78
67
60 72
60 54 66
58
44 44 55 49
40 46
42 41
30
16 16 19 19 23
20 24
10 22
6 14 18
8 12 10 8
1 1 1 11 11
6 3 3
0
51

53

55

57

59

61

63

65

67

69

71

73

75

77

79

81

83

85

87

89

91

93

95

97

99

01
19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

20

The graph shows an upward trend until about 1990. After that year, the number of cited papers by year
has fallen almost continnously. One possible explanation for this trend could be that the profession
needs about a decade to fully appreciate earlier work, which has to overcome an important time lag to
fully show up in references. After about 10 years, it seems that papers become outdated and score few
new references.

Curiosity
In Vol. 27/ No.2 (1), the authors Pauline Barrieu and Nicole El Karoui in Reinsuring Climatic Risk Using
Optimally Designed Weather Bonds referred to the oldest article, written in 1900 by L. Bachelier on
Thorie de Ia Speculation.

* * * * *

11
The Geneva Association Insurance Economics N 50 / July 2004

V. 31st EGRIE: PROGRAMME

31st Seminar of the European Group of Risk and Insurance Economists

Marseille, September 20-22, 2004

Sponsored by The Geneva Association

Venu: Universit de la Mditerrane, Jardins du Pharo, 58 Bd Charles Livon, 13007 Marseille

Monday, September 20, 2004

9.00 - 9.30 Presentation by David Cummins, Alternative risk transfer and securization

11.00 - 12.30 PARALLEL SESSIONS 1 - BACKGROUND RISK

Rose-Anne Dana, Marco Scarsini, Optimal Risk Sharing with Background Risk
Laurence Abadie, Beatrice Rey, Background Risk and the Value of a Monetary Risk

PARALLEL SESSION 2 - INSURANCE CLAIMS

L. Connelly, C. Cameron, E. Kendall and H. Muenchberger
Claims for Economic Loss: An Analysis of Insurance Claim Propensity, Claim Success
and Claim Size for Injured Road Mark
Jean-Marc Bourgeon, Pierre Picard
Point Record Mechanisms and Road Safety: An Economic Approach
12.30 - 14.00 Lunch

14.00 - 16.00 PARALLEL SESSIONS 3 - ECONOMETRICS OF INSURANCE 1

Antoine Bommier, Bertrand Villeneuve
From Wage-Risk Trade-offs to the Value of Longevity Gains: How Serious is the
Simplicity Bias?
Ursina Meier and J.Francois Outreville
Why Is There a Reinsurance Cycle in the USA?
Flor Mara Guerrero, Maria del Carmen Melgar and Jos Antonio Ordaz
The Main Determinants of the Number of Accidents in Automobile Insurance:
An Empirical Analysis

PARALLEL SESSION 4 - FINANCIAL CHOICE

Daniel Aunon-Nerin and Paul Ehling, Why Firms Purchase Property Insurance
Yannis Bilias and Michael Haliassos
The Distribution of Gains from Access to Stocks
Guenter Franke, Harris Schlesinger and Richard Stapleton, Optimal Asset Allocation
Given Personal, Non-Hedgeable Income and Re-Investment Risks

16.30 - 18.00 PARALLEL SESSIONS 5 - RISK AVERSION CHARACTERISTICS

Donald Meyer and Jack Meyer, Relative Risk Aversion: What do We Know?
Emilio Venezian, Some Characteristics of Supply of and Demand for Insurance:
The CARA Case

PARALLEL SESSION 6 - SUBJECTIVE RISK MEASURES

Han Bleichrodt and Louis Eeckhoudt
The Valuation of Risks to Life When Probabilities are Distorted
Louis Eeckhoudt and Meglena Jeleva
Medical Decision Making with Imprecise Probabilities

12
The Geneva Association Insurance Economics N 50 / July 2004

Tuesday, September 21, 2004

8.30 - 10.30 PARRALLLEL SESSIONS 7 - FINANCIAL CHOICE 2

Jerome Foncel and Nicolas Treich
Do More Aggressive Investors Demand Less Insurance?
Marcel Boyer, Martin Boyer and Ren Garcia, The Value of Risk Management

PARALLEL SESSION 8 - IMPERFECT INFORMATION

Christian Laux, Multiline Insurance: Bundling Risks to Reduce Moral Hazard
Pierre-Andr Chiappori, Bruno Julian, Bernard Salanie and Francois Salanie
Asymmetric Information in Insurance: General Testable Implications
Michael Sonnenholzner and Achim Wambach
The Role of Patience in an Insurance Market

11.00 - 13.00 PARALLEL SESSIONS 9 - FINANCE

E. Jouini and C. Napp
Pessimism, Riskiness, Risk Aversion and the Market Price of Risk
Richard MacMinn and Andreas Richter
Hedging Brevity and Longevity Risk with Mortality-Based Securities
Svein-Arne Persson, Bundled Financial Claims - A Model of Hybrid Capital

PARALLEL SESSION 10 - EXPERIMENTS

Yves Schneider and Peter Zweifel
How Much Internalization of Nuclear Risk Through Liability Insurance?
Thomas Papon, The Role of Commitment Period and Past Experience Upon
Insurance Choices: An Experimental Approach
Zur Shapira and Itzhak Venezia, An Experimental Study of the Full-Coverage Puzzle

Wednesday, September 22, 2004

9.00 - 10.30 PARALLEL SESSIONS 11 - SUBJECTIVE MEASURES

Christian Gollier, Optimal Illusions and Decisions Under Risk
Michele Cohen, Johanna Etner and Meglena Jeleva
Insurees Risk Perception and Corrective Subsidies

PARALLEL SESSION 12 - ECONOMIC MODELS OF INSURANCE

Martin Nell, Andreas Richter and Jorg Schiller, When prices hardly matter:
The interaction between insurance and markets for repair goods
Henri Louberg and Richard Watt
On the Demand for Budget Constrained Insurance

11.00 - 13.00 PARRALLLEL SESSIONS 13 - HEALTH INSURANCE

Nathalie Fombaron and Carine Milcent, Endogenous Adverse Selection:
Private Versus Public Insurance in a Health Insurance Market
Florian Baumann, Volker Meier and Martin Werding
Transferable Aging Provisions in Individual Health Insurance Contracts
Franck Bien, A Note on Adverse Selection, Health Insurance and Health Risk

PARALLEL SESSION 14 - FRAUD AND LITIGATION

John Marshall, Attourneys, Fraud, and Claims Abuse Improving Contracts by
Manipulating the Threat Points
Mercedes Ayuso, Montserrat Guillen, Stijn Viaene and Dirk Van Gheel
Measuring the Performance of Some Alternative Insurance Fraud Fighting Strategies
Browne and Joan Schmit, Litigation Free-for-all: Fact or Fiction

13
The Geneva Association Insurance Economics N 50 / July 2004

VI. WRIEC 2005

Call for Papers

2005 World Risk and Insurance Economics Congress
7 - 11 August 2005, Salt Lake City, Utah, USA

The American Risk and Insurance Association (ARIA), Asia-Pacific Risk and Insurance Association (APRIA),
European Group of Risk and Insurance Economists (EGRIE), and The Geneva Association (GA) are jointly
organizing the first World Risk and Insurance Economics Congress.
The Congress is open to all persons academics, industry executives and professionals, and government
officials who share an interest in promoting education and research in the broad areas
of risk and insurance. The purposes of the Congress are to stimulate corporate awareness and interest in
risk-related research and to provide a forum for networking among academics and industry
and government professional worldwide. ARIA is graciously hosting this first Congress.

The organizers invite submission of proposals to present theoretical or applied research dealing with issues in
risk management, insurance, and actuarial science.
The Deadline for Proposal Submission is 5 January 2005.
The proposal must be in English in PDF format. Each proposal should include a cover page containing the
paper title, the names and affiliations of each author, contact information for at least one author, and a three-
page text explaining the purpose and importance of the research, planned research methodology, and
expected results. A full paper in lieu of proposal is welcome.

The proposal/paper should be e-mailed to:

WRIEC Scientific Committee (APRIA) at APRlA@wriec.org
WRIEC Scientific Committee (ARIA) at ARlA@wriec.org
WRIEC Scientific Committee (EGRIE) at EGRlE@wriec.org
or post mailed using the address available at the Congress web site (www.wriec.org).
The proposal must be submitted only to a single regional committee of the authors choice,
preferably the one with which the author has the greatest affinity.
The Scientific Committees will review all submissions using a double-blind approach and notify authors of
their decisions on or about 1 April 2005.
Selected authors must submit electronically their full papers by 1 July 2005.

Travel Financial Aid. The organizers will provide limited financial aid to those authors from selected least
developed countries whose papers are judged to be of high quality and who certify that their employing
institutions provide no travel support for attending the Congress. The aid comprises a waiver of the Congress
registration fee and a cash award of US$500 to be given upon the recipients arrival at the Congress venue.
Applicants should request aid at the time of proposal submission, certifying their need for such and including
their curriculum vitae, by the proposal deadline.
Successful applicants will be notified of results on or about 1 April 2005.
For more information about the Congress, visit its web site at www.wriec.org, or send an e-mail inquiry to
WRIEC Secretariat at Secretariat@wriec.org.

14
The Geneva Association Insurance Economics N 50 / July 2004

WRIEC PROGRAMME 2005

tentative programme overview

World Risk and Insurance Economics Congress

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

Sunday, 7 August 2005

9:00 AM Executive Committee meeting (association-specific function)
2:00 PM Board of Governors meeting (association-specific function)
5:00 PM First-time Participant Workshop
6:00 PM Welcome Reception

Monday, 8 August 2005

07:30 AM Registration Desk Opens
08:45 AM Official Opening,
Welcoming addresses by ARIA, APRIA, EGRIE and The Geneva Association
09:15 AM Keynote Address
10:30 AM Plenary Session I
12:30 PM Luncheon
02:00 PM Semi-plenary Session I Practice-related Issues
04:00 PM Semi-plenary Session II Research-related Issues
05:30 PM Annual General Meeting (Association-specific function)
07:00 PM Reception and Dinner hosted by

Tuesday, 9 August 2005

07:30 AM Registration Desk Opens
08:30 AM Concurrent Sessions I
10:30 AM Concurrent Sessions II
12:00 PM Luncheon (Association-joint function)
01:30 PM Concurrent Sessions III
03:30 PM Plenary Session II
06:00 PM Outdoor Social Gathering and Dinner

Wednesday, 10 August 2005

08:30 AM Concurrent Sessions IV
10:30 AM Concurrent Sessions V
12:00 PM Luncheon (Association-joint function)
01:30 PM Concurrent Sessions VI
03:30 PM Plenary Session III
06:00 PM Dinner

Thursday, 11 August 2005

08:30 AM Concurrent Sessions VII
10:30 AM Concurrent Sessions VIII
12:00 PM Closing Ceremony

15
The Geneva Association Insurance Economics N 50 / July 2004

VII. Conventions supported by the Geneva Association

Montepaschi Vita
in partnership with Geneva Association and Ania
presents

2004
Montepaschi Vita Annual Forum

The Paradigms of Value.

Towards A Good Governance In Financial And Insurance Services:
The Challenge Of Ethics, Trust And Transparency
Hotel St. Regis Grand
Via Vittorio Emanuele Orlando, 3

Rome, 15th October 2004 (draft agenda, not to be circulated)

09.00 WELCOME SPEECHES

Pierluigi FABRIZI, Chairman, Banca Monte dei Paschi di Siena
Silvano ANDRIANI, Chairman, Montepaschi Vita

09.30 SESSION ONE

The Strategic Framework:
Insurance, Ethics And Transparency In A Multilevel Regulatory Environment
Chairman: Mario SARCINELLI, Chairman, Corporate Law Research Center (CERADI), LUISS
Speakers:
1. A conceptual and factual framework: core issues of the MPV Report
Andrea BELTRATTI, Professor, Bocconi University
2. Corporate Social Responsibility and the Bottom Line
Geoffrey HEAL, Paul Garrett Professor of Public Policy and Corporate Responsibility,
Columbia University
3. Shaping transparency and accountability in the European insurance market:
the new regulatory environment
Alberto CORINTI, ISVAP and Secretary General, Committee of European Insurance and
Occupational Pensions Supervisors (CEIOPS)
4. The regulatory agenda: the viewpoint of a key player of the insurance market
Sandro SALVATI, Chairman and CEO, Alleanza Assicurazioni
Discussion

16
The Geneva Association Insurance Economics N 50 / July 2004

11.15 SESSION TWO

Self-Regulatory Initiatives To Enhance Transparency And Promote A New Agenda Of Socially
Responsible Insurance
Chairman: Patrick LIEDTKE, Secretary General, The Geneva Association
Speakers:
1. The linkage among corporate governance, active engagement and corporate social responsibility:
which experiences in Europe?
Lutgart VAN DEN BERGHE, Executive Director, Vlerick Leuven Gent Management School
2. The US case and the role of professional organizations in boosting trust in financial business
Brian ATCHINSON, Executive Director, Insurance Marketplace Standards Association (IMSA)
3. New voluntary commitments and increased transparency in the French insurance landscape
Gilles BENOIST, CEO, CNP Assurances
4. Trends and practices: lessons from UK
Robert TALBUT, Executive Director and CIO, ISISAM
5. Market and peculiarities of the Italian insurance sector
Giampaolo GALLI, General Manager, ANIA
Discussion
13.00 Lunch speaker: Enrico LETTA, Secretary General, AREL *

14.45 FINAL PANEL

Social Sustainability And Financial Sustainability: Challenges Ahead
Chairman: Riccardo SABBATINI, Il Sole 24 Ore
Speakers:
1. Transparency and good governance of insurance players: how does it influence ratings?
Maurizio LUALDI, Director Equity Research, European Insurance, Credit Suisse First Boston
2. Linking CSR and corporate governance: the good governance vision of an international insurance
group
Johan VAN DER WERF, Executive Board Member, Aegon N.V.
3. CRS and multistakeholder dialogue: a key players viewpoint
Mario GRECO, CEO, RAS
4. The role of non profit organisations in sustaining corporate social responsibility
Monsignor Vincenzo PAGLIA, Comunit di SantEgidio
Discussion

16.45 Guest speaker:

Fabio CERCHIAI, Chairman, ANIA
Roberto MARONI, Minister for Social Affairs *

CONCLUSIONS
MONTEPASCHI VITA

* to be confirmed

For further information, contact:

Contents: Isabella Falautano, Scientific Coordinator, Montepaschi Vita, Tel. +39.06.50870297, E-mail i.falautano@mpv.it
Logistics: Antonella Sergenti, Conference Secretariat, Montepaschi Vita, Tel. +39.06.50870553, E-mail a.sergenti@mpv.it

17
The Geneva Association Insurance Economics N 50 / July 2004

*
Preliminary programme

2ND GENEVA ASSOCIATION HEALTH AND AGEING CONFERENCE

With the support of the Central European Initiative
And Hosted by Assicurazioni Generali

HEALTH, AGEING AND WORK

STRATEGIES FOR THE NEW WELFARE SOCIETY IN THE LARGER EUROPE

October 21-22, 2004 - Trieste, Italy

Sala Baroncini c/o Assicurazioni Generali, via Trento 8
October 23, 2004 - Duino Castle (Trieste)

THURSDAY, OCTOBER 21

9.00 Welcome / Opening Remarks

Mr. Giovanni Perissinotto / Mr. Sergio Balbinot , CEOs Assicurazioni Generali
Mr Patrick Liedtke, Secretary General of The Geneva Association
Dr Orio Giarini, Director of The Risk Institute, Geneva - Trieste

HEALTH AND AGEING

Chair: Prof Domenico Romeo, Rector of the University of Trieste and former President of the Trieste
Science Park

9.30 SESSION 1
The biological limits: extending the life cycle, how far conditions and consequences
Dr Jean-Marie Robine, Network on Health Expectancy, Montpellier,
"Limits of human longevity: empirical evidence"
Prof. Vincenzo Marigliano, University La Sapienza, Rome
Prof. Giorgio Stanta, University of Trieste, "Extending Life - Disease Pattern Shift"

11.15 SESSION 2: Science, Technology and Medical advances:

Dr Nicola Pangher, Science Park, Trieste, "Technology supporting wellness management"
Dr Carlos Cunha de Ea, Medical Director, Mdis, Lisbonne
"Saude 24: a public-private partnership"
Prof. Nicolas Bosanquet, Imperial College, London,
"Improving Access to new Therapies for Older Patients."

13.00 Lunch Break (Jolly Hotel, Corso Cavour 7)

14.30 SESSION 3: Redefining Health and Disability:

Chair: Dr Volker Leienbach,
Director General, German Health Insurance Federation, Cologne/Kln
Dr M. Leonardi, WHO advisor, The new Classification of the WHO
Dr Rafael Lindqvist, Umea University, Sweden, Health and Disability The Swedish model
Health and Disability The Italian Case (speaker to be announced)

* As of 24.06.2004. Simultaneous translation in English and Italian. For further information, please contact Dr Christophe
Courbage (Head of Research) at the secretariat of the Geneva Association. Tel. +41 22 707 66 00. Fax. +41 22 736 75 76.
Email: christophe_courbage@genevaassociation.org

18
The Geneva Association Insurance Economics N 50 / July 2004

16.00 SESSION 4: Assessing the cost of health and its financing

Richard Jackson+, Center for strategic international studies (CSIS), Washington,
The new CSIS vulnerability index of forecasts of global health costs increases
Dr Jonas Schreygg, Technical University of Berlin,
Health Insurance with Medical Savings Accounts An International Perspective
Francesca Colombo, OECD, Paris,
Private health Insurance experiences in OECD countries
20.00 Conference Dinner (Circolo delle Assicurazioni Generali, piazza Duca degli Abruzzi)

FRIDAY, OCTOBER 22

WORK AND AGEING (THE STRATEGY OF THE FOUR PILLARS)

9.30 SESSION 5: Extending Working Lives: Public Policies

Chair: Genevive Reday-Mulvey, The Geneva Association
Prof. Raimondo Cagiano and Dr Benedetta Cassani, University La Sapienza, Rome,
The demographic situation now and in the next 10 to 20 years
F. Von Nordheim, European Commission, Brussels,
"Active Ageing - a core policy priority for the European Union"
L. van der Heiden-Aantjes, Ministry of Social Affairs & Employment, Dutch government,
The Hague, The recent Dutch policy on employment of Older Workers
M.Hutsebaut, European Trade Union Institute, Brussels, How to reconcile employees
interests with the increasing older workers employment policies?

11.30 SESSION 6: Extending Working Lives: Company Policies

Chair: Dr Werner Moertel, Member of the Board, Generali, Vienna
Samantha Mercer, Employers Forum on Age, London,
Flexible retirement in British companies
Caisse dpargne et de prvoyance, Paris,
The French experience of part-time work at end of career
Maria-Luisa Mirabile, IRES, Roma, The Italian attitude of social partners

13.00 Lunch Break (Hotel Jolly, Corso Cavour 7)

WORK AND AGEING (IMPACT OF THE NEW AND FUTURE EU MEMBER STATES)

14.30 SESSION 7: Strategies for education and employment in the extended life cycle
Chair: Prof. Ivo Slaus, Member of the Croatian Parliament and of the Club of Rome
Prof. Mircea Malitza, President of the Black Sea University of Bucharest, and
Dr Elena Gheorgiu, University of Bucharest, The double Helix of Learning and Work,
Presentation and discussion a book published by UNESCO CEPES (Bucharest)
Prof. Flavio Pressacco, University of Udine, New employment strategies in the extended
life cycle: a non conventional multidisciplinary approach

16.00 SESSION 8: Italian perspectives of the four pillars ongoing reforms

Chair: Dr Lorenzo Kravina (proposed ), Director, Assicurazioni Generali, Trieste
Prof. Carla Angela Mormino+, President, Institute of Actuaries, Rome
Prof. Lucia Vitali+, University La Sapienza, Rome

+ to be confirmed

19
The Geneva Association Insurance Economics N 50 / July 2004

International Association
for the Study of Insurance Economics
"The Geneva Association"

Route de Malagnou 53 Tel. +41-22-707 66 00

CH-1208 Geneva Fax. +41-22-736 75 36
http://www.genevaassociation.org E-mail: secretariat@genevaassociation.org

INTERNATIONAL INSURANCE AND FINANCE SEMINAR

11-12 November 2004, Prudential Groups Head Office, London

Current Financial Issues in Insurance

Draft programme (as of 17.7.2004)
THURSDAY, 11 NOVEMBER 2004
9.00 Welcome and opening remarks:
Patrick Liedtke, Secretary General, Geneva Association
Philip Broadley, Chief Financial Officer, Prudential Corporation
9.15 Keynote Address: The Role and Activities of the Forum of CFOs in Insurance
SESSION 1: THE ROLE OF FINANCE AND RISK MANAGEMENT IN INSURANCE COMPANIES
9.45 Topics
The Changing Finance Function within Insurance Companies
The Changing Role of the Risk Management in Insurance Companies and its links to Financial
Management
SESSION 2: CAPITAL REQUIREMENTS AND CAPITAL ADEQUACY
11.20 Topics
Calculating Economic Capital and its Allocation in Insurance Companies
Innovations in Raising New Capital for Insurance Companies.
Developing the Solvency II Framework in Europe
SESSION 3: FINANCIAL PERFORMANCE IN INSURANCE
14.30 Topics
Enhancing shareholder value in life insurance,
Enhancing shareholder value in a non-life (P&C) insurance
The new European embedded principles
SESSION 4 MEASURING AND BENCHMARKING FINANCIAL PERFORMANCE
16.30 Topics
Measuring financial performance in insurance: analyst/ consultant/ research perspective
Measuring financial performance in insurance: rating agency perspective
Determining the cost of capital in an international insurance company: investment banker
FRIDAY, 12 NOVEMBER 2004
SESSION 5: INTERNATIONAL REPORTING STANDARDS IN INSURANCE: THE CHALLENGES AHEAD
9.00 Topics
Overview of current position and theoretical and practical issues
Developing an IFRS for insurance contacts under Phase II: the IASB perspective
Methods of valuing non-life insurance liabilities
Methods of valuing life insurance liabilities
SESSION 6: INTERNATIONAL FINANCIAL REPORTING STANDARDS: USER NEEDS
11.00 Topics
Information needs of financial analysts: European perspective
Information needs of financial analysts: US perspective
Information needs: an institutional investor view
Information needs: a regulatory view
SESSION 7 ASSET-LIABILITY MANAGEMENT IN INSURANCE
14.30 Topics
Asset-Liability management models: insurance company perspective
Asset-Liability management models: regulatory perspective
Asset-Liability management models: consultancy perspective
Hedging strategies in insurance companies

20
The Geneva Association Insurance Economics N 50 / July 2004

Insurance and International

Financial Reporting Standards
Milan, 1 December 2004

FIRST SESSION: REGULATION AND INSURANCE ECONOMICS

9.00 am Chairman: *P.M. Liedtke Secretary General The Geneva Association
* Denis Duverne, CFO, Groupe AXA
* Yoshihiro Kawai, Secretary General IAIS
* Gerry Dickinson, Honorary Vice Secretary General of the GA and Director of
the Centre for Insurance & Investment Studies, City Uni. Business School, London
SECOND SESSION: RISK TRANSFER AND INTERNATIONAL FINANCIAL REPORTING STANDARDS
11.30 am Chairman: * R. Pontremoli
* Fausto Marchionni, CEO Fondiaria-SAI
* Sandro Salvati, President Alleanza Assicurazioni
Mario Greco CEO RAS Assicurazioni
THIRD SESSION: CAPITAL ADEQUACY AND RISK MANAGEMENT INSURANCE
2.30 pm * Alfonso Desiata, Vice President Alleanza Assicurazioni
3.00 pm Round Table Moderator: * Angelo Scarioni
* Giulio Baseggio, General Manager FONDIARIA-SAI
Jaspar Benoit, Generali Assicurazioni
Emanuele Marsiglia, General Manger Monte Paschi Vita
Ezio Paolo Reggia, General Manager Cattolica Assicurazioni / Massimo
Antonarelli, General Manager Munich Re
CONCLUSIONS: ANIA
5.30 pm End of the conference * Confirmed

Annual Liability Regimes Conference

A European Perspective on Global Developments
Date: 27-29 October 2004
Venue: Swiss Re Centre for Global Dialogue

Topics:
The Underlying Socio-Economic Forces Driving Liability Regime Change
The Extremes Of The Us Liability System: Causes And Consequences
Eurpean Dynamics Current Conditions And Emerging Risks In Europe
Actions And Remedies Within The Insurance Industries Control
Reflections On The 2004 Meeting And Outlook For The Annual Liability Regimes
Conference 2005

21
The Geneva Association Insurance Economics N 50 / July 2004

20th Progres Seminar on

New Developments in the Regulation and Supervision of Financial Services
Geneva, 4 5 November 2004
Hotel President Wilson, Geneva
Quai Wilson 47, 1211 Geneva 21

Speakers:
Julian Arkell, Knut Hohlfeld, Yoshihiro Kawai, Daniel Schant, Gunilla Borer, Hung Tran, Ernst Csiszar,
Ralph Vogelgesang, William C Marcoux, Marie-Louise Rossi, Wil Dullemond, Franois-Charles
Laprevote, Thomas Schubert,
Florence Lustman, Gerald Dickinson, Douglas Barnert, Nigel Masters, Prof. Jan Monciewicz, Stuart
Brahs, John Cooke, Ambassador Alejandro Jara, Franois-Charles Laprevote, Abdel-Hamid Mamdouh,
Bradley Smith

For further information please contact:

Logistics: Content:
Ms Cristiana Manzoni, Mr Julian Arkell,
Conference Coordinator arkell@infotelecom.es
53, Route de Malagnou or through
CH 1208 Geneva The Geneva Association
Tel. : +41-22-707 66 00, Fax : +41-22-736 75 36 General Secretariat

* * * * *

ANNUAL ROUND-TABLES OF CHIEF RISK OFFICERS

Capital Adequacy and Financial Risk Management
Date: October 14 - 15, 2004
Venue: New York, USA
JW MARRIOTT HOTEL

Thursday, October 14, 2004:

Morning session:
short introduction on the Geneva Associations General Assembly 2004 and the CEOs proposal for
the CROs future work
Followed by a kick off on Capital Adequacy and Financial Risk Management
Afternoon session will be split into Solvency II for Europeans and an equivalent issue for the non-
European participants

Friday, October 15, 2004

Morning session: Capital Adequacy and Financial Risk Management continued
Afternoon session: Function of Risk Management in insurance and reinsurance companies and
the role of the CRO; issues for the CROs Spring Workshop 2005

* * * * *

22
The Geneva Association Insurance Economics N 50 / July 2004

VIII. Calls for Papers and Submissions

Call for Submissions for the Ernst-Meyer-Prize 2005

The Geneva Association awards every year the prestigious Ernst-Meyer-Prize for university research
work, usually in the form of a doctoral thesis, which makes a significant and original contribution to the
study of risk and insurance economics.
Applications for the Ernst-Meyer-Prize must be accompanied by a curriculum vitae, a description of
the research undertaken and letters of recommendation from two professors of economics.
Applicants must also submit three copies of their work and a summary of 1000 to 1500 words in
English as hardcopy and as WinWord file on diskette or per email. (info@genevaassociation.org)
The prize awards 5,000 Swiss Francs.
The deadline for the Ernst-Meyer-Prize 2005 is 30 September 2004.
Applications should be addressed to
The Geneva Association - Ernst-Meyer-Prize
General Secretariat
Route de Malagnou 53, CH-1208 GENEVA
The Geneva Association also awards scholarships, research grants and subsidies for theses. Please
contact the General Secretariat of The Geneva Association for information.

** * * *

CALL FOR PAPERS

11th Joint Seminar of the European Association of Law and Economics
and The Geneva Association
Risk Classification and Public Policy
Berlin, June 16-18, 2005

The 11th Joint Seminar of the International Association for the Study of Insurance Economics (the
Geneva Association) and the European Association of Law and Economics (EALE) will take place at the
German Institute for Economic Research (DIW) in Berlin on June 16-18, 2005.
The main topic of this seminar will be Risk Classification and Public Policy but any papers dealing with
the economics of law and insurance are invited. Special consideration will be given to papers that
address the issues of
Cross-sectional and international comparison of risk classification schemes, including non-
insurance branches such as solvency regulations (e.g., Basel II).
Purposes and limits of risk classification, including legal and public policy restrictions on risk
classification (e.g. ethnic and gender non-discrimination, privacy rights, equal access to credits).
Cost of benefits of risk classification, including theoretical and empirical studies of the effects of
risk classification on insurance prices and competition, welfare effects, and transaction costs.
Comparison of different instruments of risk classification, including efficacy and enforceability of
different schemes of risk classification (e.g., mutable and immutable characteristics, causational
and correlated factors, directly linked and indirect factors, use of genetic information, experience
rating etc).
Abstracts should be submitted by January 15, 2005 for review by a scientific board at the DIW Berlin.
Full papers are due by May 31, 2005. A selection of papers from the seminar will be invited for
publication in The Geneva Papers on Risk and Insurance - Issues and Practice.
The seminar is sponsored by The Geneva Association and the DIW Berlin.
Contact: Reimund Schwarze, DIW Berlin, Koenigin-Luise-Str. 4/5, 14195 Berlin, Germany.
Tel: 0049 (0)30 8978 9297. E-mail: rschwarze@diw.de.

23
The Geneva Association Insurance Economics N 50 / July 2004

IX. Other Conventions and Seminars

Sixth Meeting of The Geneva Associations

Amsterdam Circle of Chief Economists
February 2005, Amsterdam
Hosted by ING Group
For further information contact the Geneva Association Secretariat at:
Te.no: 0041-22-707 6600, Fax: 0041-22-736 7536 or E-mail: info@genevaassociation.org

* * * * *

American Risk and Insurance Association 2004 Annual Meeting

August, 8 11, 2004
Chicago, Illinois, USA

Insurers are using new methods to assess, categorize, price, reduce, and transfer risk.
Plenary sessions will feature experts from various segments of the industry, who will share their insights
on innovations and changes related to reinsurance, underwriting, ethics, and other important areas.

More details on the 2004 Annual Meeting will be provided on the ARIA Web site (http://www.aria.org/)
and in the next issue of ARIA News.

* * * * *

The 8th Annual Conference of the

Asia Pacific Risk and Insurance Association
Venue: Seoul, Korea
18 21 July 2004

organised by
Korean Insurance Academic Society
Korea Risk Management Society
Korea Insurance Development Institute

Contact Address: APRIA Secretariat, c/o Singapore College of Insurance

9, Temasek Boulevard I #14-01/02/03 Suntec Tower 2 I Singapore 038989
Tel: (65) 6221-2336 I Fax: (65) 6220-6684
Website: www.apria.org E-mail: apriaseoul@kidi.or.kr

24
The Geneva Association Insurance Economics N 50 / July 2004

SRA Europe Annual Meeting

The Society for Risk Analysis is a multidisciplinary, interdisciplinary, scholarly, international society that provides an
open forum for all those who are interested in risk analysis.
The Society for Risk Analysis Europe aims to bring together individuals and organisations interested in risk
assessment, risk management and risk communication in Europe.
SRA-E emphasises the European dimension in the promotion of interdisciplinary research and education, and in
practical application in industry and Government.
15 17 November 2004, Paris, France
For more information about SRA please visit: http://www.sra.org
Or contact: SRA Europe Secretariat, In Conference Ltd
10b Broughton Street Lane, Edinburgh EH1 3LY, Scotland, UK
Tel: +44 (0)131 556 9245, Fax: +44 (0)131 556 9638, Email: sra-e@in-conference.org.uk

* * * * *

EUROPEAN CENTRE OF TORT AND INSURANCE LAW

Landesgerichtsstrasse 11 A-1080 Vienna Austria
Tel.: (+43-1) 40 127-1688 Fax: (+43-1) 40 127-1685
http://www.ectil.org E-mail: ectil@ectil.org

The European Centre of Tort and Insurance Law (ECTIL) was founded in Vienna in 1999 with a two-fold
purpose: on the one hand, to create a secure institutional basis for the drafting of the Principles of
European Tort Law (Principles) which is undertaken by the European Group on Tort Law and, on the
other hand, to undertake research projects in the field of tort and insurance law.
The drafting of the Principles is the most extensive project of ECTIL. Academics were called together to
discuss the fundamental questions relating to tort law on a comparative basis, the aim of the research
being to create the foundation for discussing a future harmonisation of tort law in the EU. The work of the
European Group has already led to concrete results in the form of publications dealing with the issues of
Wrongfulness, Causation, Damages, Strict Liability, Liability for Damage caused by Others and
Contributory Negligence which are published by Kluwer Law International in the Unification of Tort Law
series. Forthcoming publications (2004) will deal with the issues of Multiple Tortfeasors and Fault. The
results of the General Part of the Principles were completed in April 2004 and are available on ECTILs
website (www.ectil.org). The Commentary to the Principles will appear at the beginning of 2005.
The work of ECTIL also encompasses comparative legal research studies, the results of which are
published in the Tort and Insurance Law series by Springer Publishing House. Detailed information on
these publications, which, among others, deal with the topics of Terror, No-Fault Compensation,
Environmental Liability, Medical Malpractice, Non-Pecuniary Loss, Pure Economic Loss, and Personal
Injury can be accessed at the website of ECTIL. The subjects of the research, which deal with relevant
issues for the insurance industry, are chosen due to their current significance and are often embarked
upon on the initiation of institutions who have a particular interest in a topic at the European level. ECTIL
also publishes a Yearbook on the developments of tort law in Europe in co-operation with the Research
Unit on European Tort Law of the Austrian Academy of Sciences (www.etl.oeaw.ac.at). The highlights of
the reports are presented and discussed at the Annual Conference on European Tort Law in Vienna.
The next conference will take place on 31 March and 1 April 2005.

Board of Directors: Michael Faure (Maastricht), Attila Fenyves (Vienna), Helmut Koziol (Vienna),
Ulrich Magnus (Hamburg), W. V. Horton Rogers (Nottingham)

* * * * *

25
The Geneva Association Insurance Economics N 50 / July 2004

X. Geneva Association Publications

The GENEVA Papers on Risk and Insurance Issues and Practice

Table of Contents, Vol. 29 No.1 / January 2004

TH
CONTRIBUTIONS FROM THE 30 GENERAL ASSEMBLY OF THE GENEVA ASSOCIATION,
JUNE 2003
Insurance Economics and Legal Systems by Waler B. Kielholz and Richard H. Murray,
Michael A. Butt, Hans-Jrgen Schinzler
Insurance Operations and the Asset Meltdown by Denis Kessler, Thomas Sutton
Ethics, Goverance, Trust, Transparency and Customer Relations
by Henri de Castries, Brian A. Atchinson, Jeremy Scott, Anton van Rossum
The Impact of Insurance Accounting on Business Reality and Financial Stability
by Jonathan Bloomer, Gerd Husler, Lothar Meyer, James J. Schiro
DEVELOPMENTS IN THE INSURANCE FRAMEWORK
Current Priorities in International Standard Setting on Insurance Supervision by Knut Hohlfeld
Operational Risk Control Business Opportunity and Challenges for the Insurance Industry
by Dimitris N. Chorafas
Perception of Risk by Ortwin Renn
The Economics of Annuities by Richard Taylor
TH
27 ANNUAL LECTURE OF THE GENEVA ASSOCIATION
Insuring Liability Risks by Tom Baker

Table of Contents, Vol. 29, No. 2 / April 2004

INSURANCE LAW AND ECONOMICS
The Law and Economics of Insurance: Catastrophic Risks, Competition on Insurance Markets and Insights
from History, by Roger Van den Bergh
In the Aftermath of Dresden: New Directions in German Flood Insurance,
by Reimund Schwarze and Gert G. Wagner
Insurability and Regulatory Reform: Is the English Flood Insurance Regime Able to Adapt to Climate
Change?, by Michael Huber
Improving Risk Allocation Through Indexed Cat Bonds, by Martin Nell and Andreas Richter
How Deregulation Shapes Market Structure and Industry Efficiency: The Case of the Italian Motor
Insurance Industry, by Giuseppe Turchetti and Cinzia Daraio
Information Exchange as Collusive Behaviour: Evidence from an Antitrust Intervention in the Italian
Insurance Market, by Donatella Porrini.
The Emergence and Development of Fidelity Insurance in 19th-Century Britain,
by Greg Anderson
Insurance as an Instrument of War in the 18th Century, by Geoffrey Clark
REGULATION AND FINANCIAL STABILITY
Financial Stability and Insurance Supervision: The Future of Prudential Supervision,
by Terri M. Vaughan
Regulations as a Source of Systemic Risk: The Need for Economic Impact Analysis,
by Rolf Nebel
Domestic Regulation and Insurance: The Case for a GATS Reference Paper for the Insurance Sector, by
John Cooke
Credit Derivatives, Insurance Companies and Liquidity Black Holes, by Avinash Persaud
Insurance Fraud: Issues and Challenges, by Stijn Viaene and Guido Dedene
Issue Management in (Re)Insurance: An Emerging Strategic Challenge, by Kai-Uwe Schanz

Special Issue
IMPACT OF A FAIR VALUE FINANCIA REPORTING SYSTEM ON INSURANCE COMPANIES A SURVEY
This second report to The Geneva associations Accountancy Task Force provides an empirical analysis
of the views of insurance companies on the likely impact that an international financial reporting standard
based on a full fair value methodology, if it were to be introduced, would have on a mumber of their key
corporate policy areas.

26
The Geneva Association Insurance Economics N 50 / July 2004

The Geneva Papers on Risk and Insurance Theory

Table of Contents, Vol.29, No.1 / June 2004
Infrequent Extreme Risks, by C. Gourieroux, A. Monfort
Cream Skimming, Dregs Skimming, and Pooling: On the Dynamics of Competitive Screening,
by Diderik Lund, Tore Nilssen
Health and Wealth: How do They Affect Individual Preferences?,
by Batrice Rey, Jean-Charles Rochet
Labor Income Risk and Car Insurance in the UK, by Winfried Koeniger
The Effective Duration and Convexity of Liabilities for Property-Liability Insurers Under Stochastic Interest
Rates, by Kevin C. Ahlgrim, Stephen P. D'Arcy, Richard W. Gorvett

List of Recent Working Papers Series Etudes et Dossiers

No 275 / November 2003

TH
19 PROGRES INTERNATIONAL SEMINAR
THE REGULATION OF FINANCIAL SERVICES IN RELATION TO RISK
Geneva, 18 19 September 2003

No 276 EGRIE I & 277 EGRIE II / December 2003

Zurich, 14-17 September 2003

No 278 / January 2004

INSURANCE AND THE STATE OF THE ART IN CAT BOND PRICING
Geneva, January 2004, Special Issue

No 279 / February 2004

THE M.O.R.E 18 SEMINAR ON UNINSURED RISKS
Athen, 6 7 November 2003

No 280 / March 2004

VULNERABILITIES AND CRITICALITIES OF TECHNICAL AND ORGANISATIONAL SYSTEMS IN THE NEW
SERVICE ECONOMY
Special Report, Geneva, March 2004

No. 281 / March 2004

ND
2 MONTEPASCHI VITA FORUM ON PARADIGMS OF VALUE
THE RISK SHIFT FROM PUBLIC TO PRIVATE: WHICH ROLE FOR INSURANCE AND FINANCIAL GROUPS?
Rome, September 2003

No. 282 / April 2004

AMSTERDAM CIRCLE OF CHIEF ECONOMISTS - 2003 & 2004
Amsterdam, February 2003 & Amsterdam, February 2004

No. 283 / May 2004

TH
4 CEO INSURANCE SUMMIT
Delivering on the Growth Promise and Profit in Asia
Seoul, South Korea, 10-11 February 2004

No. 284 / June 2004

THE GENEVA ASSOCIATIONS FIRST CHIEF COMMUNICATION OFFICERS MEETING
Zurich, Switzerland, 4 5 December 2003

* * * * *

27
The Geneva Association Insurance Economics N 50 / July 2004

XI. Schedule of Conferences Organised by The Geneva Association

International Association
for the Study of Insurance Economics
"The Geneva Association"

53, Route de Malagnou Tel. +41-22-707 66 00

CH-1208 Geneva Fax +41-22-736 75 36
http://www.genevaassociation.org E-mail: secretariat@genevaassociation.org

2004
September
20-22 Marseille The 31st Seminar of the European Group of Risk and Insurance
Economists (EGRIE)
October
14-15 New York 2nd Annual Round Table of Chief Risk Officers
15 Rome Montepaschi Vita Annual Forum 2004, 3rd Edition of the MPV Forum
The Paradigms of Value, Montepaschi Vita and The Geneva Association
21-22 Trieste 2nd Conference on Health and Ageing
25 Hanzhou Insurance Leaders Panel in China,
co-organized with the Asia Insurance Review
28-29 Zurich 2nd Conference on Liabilities and Legal Developments in Insurance,
hosted by Swiss Re, co-organised with Munich Re, RSA, SCOR and Zurich
Financial Services
November
4-5 Geneva 20th PROGRES Seminar on Regulation, Supervision and Global Trade
Issues
8-9 Bordeaux 19th M.O.R.E. Seminar at AXA University near Bordeaux
(Management of Risks in the Economy)
11-12 London 1st Geneva Association Insurance and Finance Conference,
hosted by Prudential Corp. Plc
19 Geneva Travailler jusqu 67 ans ou Retraite Flexible?
Organisation Uni 3 en collaboration avec lAssociation de Genve et Avenir
Suisse
December
1 Milan Insurance and International Financial Reporting Standards,
in cooperation with Macros Research
6-7 Zurich 2nd Meeting of the Global Insurance Communications Network,
co-organised with Zurich Financial Services
13-14 Paris 3rd Paris International Insurance Conference,
co-organized with the FFSA

2005
January
11 New York Joint Industry Forum for P&C Insurance Industry,
co-sponsored by The Geneva Association

28