...Zaneta Chapman; Thomas Getzen Purpose The purpose of this paper is to examine the risks caused by “hazardously immoral” contracts which force external parties to bear significant losses without their consent. Design/methodology/approach The expectation of substantial future losses raises...

...Nadine Gatzert; Hato Schmeiser Purpose The purpose of this paper is to provide a detailed analysis of industry loss warranties (ILWs), an alternative risk transfer instrument which has become increasingly popular throughout the last few years. Design/methodology/approach The authors first...

...‐world counterparts. Findings Under certain simple assumptions, the editorial finds that the estimation of two fundamental actuarial quantities of property‐liability insurance – the expected individual loss amount and the expected discounted total claim payments – is subject to a type of uncertainty...

...Michael R. Powers Purpose The purpose of this paper is to consider the existence and significance of heavy‐tailed – and in particular, infinite‐mean – insurance losses. Design/methodology/approach Three specific questions are addressed in turn. First, how do infinite‐mean insurance losses...

...Marcus Davidsson Purpose The purpose of this paper is to communicate the science and art of stop losses. Design/methodology/approach This paper uses theoretical reasoning, Monte Carlo simulation, and empirical data to support and validate the claims made. Findings The paper expands...

...J. Samuel Baixauli; Susana Alvarez Purpose The purpose of this paper is to critically analyze the common assumption, made by many credit risk models such as the Moody's KMV Loss‐Calc model, of a β distribution for the loss‐given default (LGD). The paper shows that this assumption does...