Journal of Insurance and Financial Management publishes original papers, review papers, case studies, empirical research, technical notes, and book reviews. Address: 111 Bannatyne Dr, North York Ontario, Canada M2L 2P5
Journal of Insurance and Financial Management, 2023
In the past few years, global economies have been hit severely by global warming, the Covid pande... more In the past few years, global economies have been hit severely by global warming, the Covid pandemic and recently, the Russian-Ukraine war. Developing economies and basic institutions such as insurance companies are not exempted from high inflation spikes, interest rates, and slow economic growth. This has raised the cause to examine the impact of inflation and interest rates on the life insurance companies in Ghana. Specifically, the study investigated how inflation and interest rates affect life insurance investment and underwriting profits. The study's results disclosed that although inflation had a negative impact and interest rate positively affected investment income, both were insignificant. However, the impact of both inflation and interest rate on underwriting profit was highly significant. Claims ratio had a negative relationship with investment income and underwriting profit, while premium growth positively impacted investment income but negatively affected underwriting profit. The life insurance industry must work to remain relevant and valuable to customers by offering innovative products and solutions that are more efficient and cost-effective. They can invest in technology and digitalization to automate various processes and operations to reduce costs, increase efficiency, and protect shareholders' capital.
Journal of Insurance and Financial Management, 2023
Craig Turnbull's 2020 book, Some Notes on the Methodology of Actuarial Science, is to be highly r... more Craig Turnbull's 2020 book, Some Notes on the Methodology of Actuarial Science, is to be highly recommended, in general. However, from a historical perspective, one particular section of chapter one, on methodology, needs to be corrected in a future edition. The section is section 1.3, which deals with logical theories of probability, in general, and Keynes's logical theory, specifically. There are two areas of confusion that have been ongoing for over 100 years that appear in this section. The first area concerns Keynes's revisions to the Bernoulli-Laplace version of the Principle of Indifference(POI), originally called the Principle of Non Sufficient Reason. The second area concerns the foundations for the measurement of probability, which for Keynes was an improved version of Boole's upper-lower probability intervals, which Keynes called either non numerical probabilities ,inexact measurement or approximation. All three names refer to the technical derivation of upper-lower probability intervals, which in modern times is called imprecise probability. This name would be a better name to use than those used by Keynes, as it also incorporates Keynes's decision weighting creation, his conventional coefficient of weight and risk, c, which is the first such decision weight approach formulated in history. Thus, the claim, that Keynes's logical theory of probability has no way of measuring probability, has no support, as Keynes's method is the same as Boole's.
Journal of Insurance and Financial Management, 2023
The current technological revolution is rapidly changing the landscape of work and life in genera... more The current technological revolution is rapidly changing the landscape of work and life in general. Society is now reliant on the internet, digital devices, skills and services for work and daily life. It is now crucial for people to be equipped with a variety of digital skills if they hope to fully participate and benefit in and from the growing digital economy and digital society. People with digital skills can qualify for jobs, start and grow businesses, access government services, access healthcare services, communicate with family, friends and colleagues, access their bank accounts, make transactions and so on.
Journal of Insurance and Financial Management, 2023
In the wake of Covid-19, a wave of changes has taken place in a number of industries. While the c... more In the wake of Covid-19, a wave of changes has taken place in a number of industries. While the company is embracing a digital solution to address these changes, the greatest concern is how to adapt the psychological wellbeing of employees. In this study, nine online interviews were conducted to identify the elements of insecurity, anxiety or even fear that employees experienced during the digital transformation. These interviews were conducted to identify how these elements affected the success of the process. As part of the transcription process, the transcript is coded and analysed using NVivo 12 Pro software. Research findings indicate that participants acknowledged that the upcoming solution, although unidentified, might greatly improve the process. However, fear of failure, threshold fear, and social fear were addressed most frequently, whereas existential fears, including status anxiety regarding institutionalized status, were not significant. The study also suggested the importance of an additional, collective fear of having chosen the wrong solution. Managers should profit from being aware of the different types of employee anxieties: as long as people affected are informed about the change in a transparent manner and have extensive information about what to expect, a lot of anxieties else to be expected will not arise.
Journal of Insurance and Financial Management, 2023
In 1776, Adam Smith, using his imprecise theory of probability, which was presented on pp.106-113... more In 1776, Adam Smith, using his imprecise theory of probability, which was presented on pp.106-113 and p.714 of his The Wealth of Nations, showed that the firms composing the insurance industry do not use precise probability and do not need to use precise probability. All they need to do is to be able to establish a lower bound on the probable risk by the use of imprecise probability. In 1921, J M Keynes, using his imprecise theory of probability, on pp.22-34 of the A Treatise on Probability, likewise showed that the firms composing the insurance industry do not use precise probability and do not need to use precise probability. All they need to do is to be able to establish a lower bound on the probable risk. The analysis of both Smith and Keynes is based on their theories of imprecise probability and the existence of uncertainty. The interesting questions are why no academician in the 18th through the 21st centuries has realized what Smith had done and why no academician in the 20th through the 21st centuries has realized what Keynes had done, which was to explicitly base their analysis on imprecise probability. Apparently, no academician, especially economists and philosophers, in the 18th through 21st century actually read and/ or understood what Smith was doing in The Wealth of Nations while no academician, especially economists and philosophers, in the 20th through the early part of the 21st century, actually read and/or understood what Keynes was doing in his A Treatise on Probability. This then leads to the following conclusion. Academicians from the 18th through the 21 centuries have not read and/or understood the two most fundamental texts written in the last 250 years. This observation lends additional hard evidence to support Hishiyama's 1969 conjecture, which was that the A Treatise on Probability was never read. To this we add the fact that either Smith's Wealth of Nations has not been read or it has never been understood.
Journal of Insurance and Financial Management, 2023
Fixed point theory has been applied to various practical problems of insurance and finance during... more Fixed point theory has been applied to various practical problems of insurance and finance during several decades. In our earlier paper (Voutilainen, 2022) we have presented problem classes which have been tackled in the literature by equilibrium theoretical methods. In Voutilainen (2023) we study fixed point problem solution methods with the help of equilibrium problem solutions. For this paper we have gathered and commented on specific fixed point applications to the insurance and finance areas. Many of them also adopt other interesting theoretical areas.
Journal of Insurance and Financial Management, 2023
Using a time series approach, this study investigates how natural resources impact financial deve... more Using a time series approach, this study investigates how natural resources impact financial development from a global perspective over the 1980-2019 period. Some important determinants of financial development (economic growth, trade openness, population growth, and investment) have been added to the model as control variables. Unit root tests have revealed that all the variables are integrated of order one. Johansen cointegration test has shown that the variables are in a long-run equilibrium relationship. The vector error correction model (VECM) has estimated the coefficient of the error correction term (ECT) which suggests that the short-run values of natural resources, economic growth, trade openness, population growth, and investment contribute to financial development converging to its long-run equilibrium level by a 23.63% annual speed of adjustment. The estimated coefficients suggest that global natural resource rent has a statistically-significant negative impact on global financial development in the long-run (thereby validating the financial resource curse), but not in the short-run. Causality test results imply that neither global natural resource rent nor global financial development Granger-causes each other.
Journal of Insurance and Financial Management, 2022
The storm of widespread public and political concerns on corporate misgivings, particularly in th... more The storm of widespread public and political concerns on corporate misgivings, particularly in the financial services industry has spurred growing regulatory demands worldwide making compliance an evergreen item on the leadership and governance agenda. Compliance with prescribed regulatory standards affords the comfort of supervisory cushion and creates a perceived endorsement of organisational practices by regulatory authorities, vested with surveillance and enforcement powers, which mitigate post effects of alleged wrongdoings to some extent.
Journal of Insurance and Financial Management, 2022
The theory of economic equilibria is an important part of mathematical economics, and the theory ... more The theory of economic equilibria is an important part of mathematical economics, and the theory of insurance equilibria a significant special case thereof. The origins of the theory of economic equilibria date back to early 1800's, and it has developed strongly during the last seventy years. The insurance equilibria have been studied since 1970's. We give a literature survey covering the most important research on insurance equilibria since 1980's. After an extensive chapter on the background to economic and insurance equilibria we discuss insurance market equilibrium, reinsurance, insurance markets with asymmetric information, adverse selection, monopolistic / competitive insurance markets, deposit insurance, moral hazard, Internet, signalling, reputation, linear equilibria, Nash equilibria, other research and remarks on the Finnish insurance market. We finish with concluding remarks. The purpose of this paper is to help researchers to discover relevant papers in the field of insurance equilibria.
Journal of Insurance and Financial Management, 2022
For the last 100 years it was been constantly claimed that Ramsey demolished and destroyed Keynes... more For the last 100 years it was been constantly claimed that Ramsey demolished and destroyed Keynes's logical theory of probability as presented in the A Treatise on Probability in 1921. A few, good examples of this 100 year old literature are C. Misak's recent 2020 biography on Ramsey, a number of recent articles in the Stanford Encyclopedia of Philosophy on Ramsey in 2019 and Simon Blackburn's recent September, 2021 article in Mind.
Journal of Insurance and Financial Management, 2022
Bitcoin introduced a cryptographic peer-to-peer version of money that allows online payments to b... more Bitcoin introduced a cryptographic peer-to-peer version of money that allows online payments to be sent directly from one party to another without going through a financial institution. Many recent studies evaluated and criticised Bitcoin's energy consumption through its Proof of Work (PoW) consensus mechanism without evaluating its efficiency compared to classical electronic payment system. Based on physics, information science and economics, we compute and compare the energy consumption and define what is the energy efficiency of both the current monetary payment system and Bitcoin cryptopayment system. We demonstrate that Bitcoin consumes at least 28 times less energy and can run today with 60 times less energy than the classical system. At a single transaction level and with total volumes accounted for, Bitcoin produces equivalent energy efficiency rates or better. When Bitcoin Lightning is compared to Instant Payment scheme, Bitcoin gains exponentially in scalability and efficiency, proving to be millions of times more energy efficient per transaction than Instant Payments.
Journal of Insurance and Financial Management, 2022
Despite the literature has devoted to understand how the aspects of financial and managerial educ... more Despite the literature has devoted to understand how the aspects of financial and managerial educational attainments relate to corporate finance implications, extant literature has paid little attention to whether and how the literacy and learning strategies in financial educational attainments affect the students' learning outcome. Studies have found that Taiwan undergraduates' and high school students' poor financial literacy in risk management capability, investment management capability, tax and lending cognition ability. Improve students' financial literacy and enable them to can solve future financial problems, which is a goal that world education institutions seek to achieve today. The purpose of this article is to explore the guided scaffolding strategy via PjBL learning strategy will achieve exploring problems or processes, focus on learning goals, participation in educational activities, student group cooperation, use of scaffolding technology and presentation of works educational goals and to help design a course that combines financial capability with flipped learning.
Journal of Insurance and Financial Management, 2022
Using official data and new econometric models based on how the industry actually works, we show ... more Using official data and new econometric models based on how the industry actually works, we show the benefits of scale for members are limited, and confined to the non-profit sector which is structured to incur relatively low fixed costs compared with much higher variable costs. In Australian institutional superannuation, most efficiency gains, such as those from economies of scale, are captured as profits for financial intermediaries, with little benefit for members. Recent regulatory reforms on fee disclosure and scale requirements have the unintended consequences of further reducing competition and benefiting the large financial conglomerates.
Journal of Insurance and Financial Management, 2022
The paper provides an introductory guide for active managers that illustrates econometric techniq... more The paper provides an introductory guide for active managers that illustrates econometric techniques for alpha generation in active asset management. For modelling stock market returns three different model types are discussed: (i) fair value models that identify over-and undervaluations, (ii) explanatory return models that allow for scenario forecasting and (iii) forecasting models that provide implementable investment signals. We provide illustrative examples for SP500 data and show how active managers may integrate these models in their investment processes. Our results indicate the relevance of econometric models to add value in active management.
Journal of Insurance and Financial Management, 2022
Minority shareholders refer to those shareholders whose shares in the company are too small in pr... more Minority shareholders refer to those shareholders whose shares in the company are too small in proportion to be able to confer significant influence on the decisions which the firm takes. Therefore, these shareholders are more vulnerable to being exploited by the majority shareholders. Often, they are deprived of a fair share of income from the companies, either in the form of salary or dividends. Moreover, they are not given any real voice in handling business affairs and, at times, are also denied information on important matters. This oppression can lead to harm in corporate enterprises, and the subsequent friction and litigation among shareholders can incur significant costs. According to the Doing Business Report 2019, Pakistan ranked 26 in Protecting Minority Investors indicator of the Ease of Doing Business Index. Thus, it is imperative to improve laws concerning shareholder protection in Pakistan to ensure that no rights are violated. The essay is divided into four parts and aims to elaborate on this matter. The first section analyses the issue created by having a Separate Corporate personality and how minority shareholders can be exploited by errant directors or other shareholders. The second section examines the laws regarding minority shareholders and director duties in Pakistan and compares them with those in the UK. The third section goes over practices in other jurisdictions and analyses whether those can be used as improvements in the context of Pakistan. Finally, the fourth section critically analyses the current situation in Pakistan and gives specific recommendations
Journal of Insurance and Financial Management, 2022
Risk management is a crucial process used to make investment decisions. One of the pillars of any... more Risk management is a crucial process used to make investment decisions. One of the pillars of any investment is the riskreturn trade-off, where a greater degree of risk is supposed to be compensated by a higher expected return. This study Highlights 1. Market performance under common assumptions of normality seems not to accurately portray reality 2. CVaR estimates by Monte Carlo simulation is an effective approach to avoid a risk measure misleading 3. Unforeseen risks and risk blindness for diversified portfolio investments may be avoided by alternative use of Monte Carlo.
Journal of Insurance and Financial Management, 2022
Objectives-This study examines the impact of the remote working system during the COVID-19 pandem... more Objectives-This study examines the impact of the remote working system during the COVID-19 pandemic on millennial employee performance in PT. Bank Mandiri (Persero) Tbk with employee motivation and employee engagement as mediating variables. Method-The study used a quantitative method by implementing a survey method where the data was collected from a questionnaire distributed to 367 respondents in PT. Bank Mandiri, Indonesia. The analysis is based on a sample from the population of millennial employees who have an experience of work from home during the COVID-19 pandemic. The data was analysed using SmartPLS ver.3.0. Results-This study found that remote work has a positive influence on employee performance, employee motivation, and employee engagement. The result also shows a mediating impact of remote work on employee performance through employee motivation and employee engagement. Regarding the pandemic, it is found that during the COVID-19 period, remote work provides millennial employees with flexible working arrangements and less commuting. However, not all employees have a suitable workspace in their homes. Remote work also develops interpersonal relationships between employees and managers. It is also found that millennial employees in Bank Mandiri have enthusiasm and inspiration when working remotely. Conclusion-The remote working system has a significant positive impact on millennial employees' performance, motivation, and engagement in PT. Bank Mandiri (Persero) Tbk during the COVID-19 pandemic situation. There is a mediation impact of remote work on employee performance by employee motivation and employee engagement.
Journal of Insurance and Financial Management, 2022
In 1973, Fischer Black and Myron Scholes published their seminal work on options pricing. Their m... more In 1973, Fischer Black and Myron Scholes published their seminal work on options pricing. Their model relied on a clever hedge which seemingly resulted in a risk-free portfolio. However, further analysis of this portfolio reveals that it may not be risk-free at all. A truly risk-free portfolio must be risk-free with respect to incremental changes to all variables on which the portfolio's value is dependent. However, the Black Scholes hedged portfolio is only risk-free in one dimensionchanges in the underlying stock value. In particular, the hedged portfolio may not be riskfree with incremental changes in time. The conclusion that this portfolio is risk-free is questioned, and with it the Black-Scholes pricing model which is dependent on the risk-free nature of this "hedged" portfolio.
Journal of Insurance and Financial Management, 2022
Owing to its grappling with a motley of intricate socioeconomic, as well as medico-legal, crises,... more Owing to its grappling with a motley of intricate socioeconomic, as well as medico-legal, crises, Haiti has found itself bereft of some of its people, many of whom have had to leave the Caribbean country in search of improved lives elsewhere. Receiving some of the Haitian refugees fleeing abject poverty, unemployment, and other harms and barriers has been the United States, one of Haiti's northern neighbors and a country that has played an outcome-determinative, if not outsized, role in steering the country toward its presently hobbled state. Drawing on the U.S.’s recent treatment of Haitian refugees, this paper argues that U.S. reception of Haitian immigrants rubs salt in the wound of a long history of dehumanizing and oppressive abuses endured by Haitians. Furthermore, and more importantly, this paper posits that U.S. failure to wholly embrace its legal obligation to accept Haitian refugees under international law needs to be understood in the light of the specific horrors inflicted by science, in pre-independence Haiti, on non-consenting, Afro-Haitian experimental subjects. And by extension, such a contextually-nuanced understanding is crucial in shaping the delivery of healthcare services to Haitian refugees fortunate enough to remain in the U.S. —as an awareness and appreciation of the socio-historical context of patients' lived experiences, i.e., their complete social history, can furnish important clues vis-à-vis the presence and etiologies of disease, influence the foci of physical exams, and generally pave the way for the provision of cost-efficient and evidence-based care.
Journal of Insurance and Financial Management, 2022
This article focuses on the limited popularity of unit-linked life insurance in Asia. An analysis... more This article focuses on the limited popularity of unit-linked life insurance in Asia. An analysis of the HNWI and UHNWI market in Asian countries (China, Hong Kong, Singapore, Indonesia) and the insurance models available in unit-linked life insurance for high-net-worth individuals will be used to determine which products insurance companies can use to best meet the requirements and needs of these customer groups. For asset diversification and estate planning through unit-linked life insurance, high net worth private customers have so far primarily had universal life insurance at their disposal. However, the flexibility and potential returns of this insurance model are limited-despite modifications to the concept to find solutions for this. Universal life insurance is currently attractive mainly because of the general low-interest environment and for tax optimisation. Private placement insurances (PPLI), on the other hand, combine maximum flexibility in the implementation of investment strategies and insurance objectives with comprehensive tax optimisa-tion options. PPLIs thus go a long way towards meeting the requirements of HNWIs and UHNWIs. There are many indications that this insurance model is currently entering a relevant growth phase in Asia.
Journal of Insurance and Financial Management, 2023
In the past few years, global economies have been hit severely by global warming, the Covid pande... more In the past few years, global economies have been hit severely by global warming, the Covid pandemic and recently, the Russian-Ukraine war. Developing economies and basic institutions such as insurance companies are not exempted from high inflation spikes, interest rates, and slow economic growth. This has raised the cause to examine the impact of inflation and interest rates on the life insurance companies in Ghana. Specifically, the study investigated how inflation and interest rates affect life insurance investment and underwriting profits. The study's results disclosed that although inflation had a negative impact and interest rate positively affected investment income, both were insignificant. However, the impact of both inflation and interest rate on underwriting profit was highly significant. Claims ratio had a negative relationship with investment income and underwriting profit, while premium growth positively impacted investment income but negatively affected underwriting profit. The life insurance industry must work to remain relevant and valuable to customers by offering innovative products and solutions that are more efficient and cost-effective. They can invest in technology and digitalization to automate various processes and operations to reduce costs, increase efficiency, and protect shareholders' capital.
Journal of Insurance and Financial Management, 2023
Craig Turnbull's 2020 book, Some Notes on the Methodology of Actuarial Science, is to be highly r... more Craig Turnbull's 2020 book, Some Notes on the Methodology of Actuarial Science, is to be highly recommended, in general. However, from a historical perspective, one particular section of chapter one, on methodology, needs to be corrected in a future edition. The section is section 1.3, which deals with logical theories of probability, in general, and Keynes's logical theory, specifically. There are two areas of confusion that have been ongoing for over 100 years that appear in this section. The first area concerns Keynes's revisions to the Bernoulli-Laplace version of the Principle of Indifference(POI), originally called the Principle of Non Sufficient Reason. The second area concerns the foundations for the measurement of probability, which for Keynes was an improved version of Boole's upper-lower probability intervals, which Keynes called either non numerical probabilities ,inexact measurement or approximation. All three names refer to the technical derivation of upper-lower probability intervals, which in modern times is called imprecise probability. This name would be a better name to use than those used by Keynes, as it also incorporates Keynes's decision weighting creation, his conventional coefficient of weight and risk, c, which is the first such decision weight approach formulated in history. Thus, the claim, that Keynes's logical theory of probability has no way of measuring probability, has no support, as Keynes's method is the same as Boole's.
Journal of Insurance and Financial Management, 2023
The current technological revolution is rapidly changing the landscape of work and life in genera... more The current technological revolution is rapidly changing the landscape of work and life in general. Society is now reliant on the internet, digital devices, skills and services for work and daily life. It is now crucial for people to be equipped with a variety of digital skills if they hope to fully participate and benefit in and from the growing digital economy and digital society. People with digital skills can qualify for jobs, start and grow businesses, access government services, access healthcare services, communicate with family, friends and colleagues, access their bank accounts, make transactions and so on.
Journal of Insurance and Financial Management, 2023
In the wake of Covid-19, a wave of changes has taken place in a number of industries. While the c... more In the wake of Covid-19, a wave of changes has taken place in a number of industries. While the company is embracing a digital solution to address these changes, the greatest concern is how to adapt the psychological wellbeing of employees. In this study, nine online interviews were conducted to identify the elements of insecurity, anxiety or even fear that employees experienced during the digital transformation. These interviews were conducted to identify how these elements affected the success of the process. As part of the transcription process, the transcript is coded and analysed using NVivo 12 Pro software. Research findings indicate that participants acknowledged that the upcoming solution, although unidentified, might greatly improve the process. However, fear of failure, threshold fear, and social fear were addressed most frequently, whereas existential fears, including status anxiety regarding institutionalized status, were not significant. The study also suggested the importance of an additional, collective fear of having chosen the wrong solution. Managers should profit from being aware of the different types of employee anxieties: as long as people affected are informed about the change in a transparent manner and have extensive information about what to expect, a lot of anxieties else to be expected will not arise.
Journal of Insurance and Financial Management, 2023
In 1776, Adam Smith, using his imprecise theory of probability, which was presented on pp.106-113... more In 1776, Adam Smith, using his imprecise theory of probability, which was presented on pp.106-113 and p.714 of his The Wealth of Nations, showed that the firms composing the insurance industry do not use precise probability and do not need to use precise probability. All they need to do is to be able to establish a lower bound on the probable risk by the use of imprecise probability. In 1921, J M Keynes, using his imprecise theory of probability, on pp.22-34 of the A Treatise on Probability, likewise showed that the firms composing the insurance industry do not use precise probability and do not need to use precise probability. All they need to do is to be able to establish a lower bound on the probable risk. The analysis of both Smith and Keynes is based on their theories of imprecise probability and the existence of uncertainty. The interesting questions are why no academician in the 18th through the 21st centuries has realized what Smith had done and why no academician in the 20th through the 21st centuries has realized what Keynes had done, which was to explicitly base their analysis on imprecise probability. Apparently, no academician, especially economists and philosophers, in the 18th through 21st century actually read and/ or understood what Smith was doing in The Wealth of Nations while no academician, especially economists and philosophers, in the 20th through the early part of the 21st century, actually read and/or understood what Keynes was doing in his A Treatise on Probability. This then leads to the following conclusion. Academicians from the 18th through the 21 centuries have not read and/or understood the two most fundamental texts written in the last 250 years. This observation lends additional hard evidence to support Hishiyama's 1969 conjecture, which was that the A Treatise on Probability was never read. To this we add the fact that either Smith's Wealth of Nations has not been read or it has never been understood.
Journal of Insurance and Financial Management, 2023
Fixed point theory has been applied to various practical problems of insurance and finance during... more Fixed point theory has been applied to various practical problems of insurance and finance during several decades. In our earlier paper (Voutilainen, 2022) we have presented problem classes which have been tackled in the literature by equilibrium theoretical methods. In Voutilainen (2023) we study fixed point problem solution methods with the help of equilibrium problem solutions. For this paper we have gathered and commented on specific fixed point applications to the insurance and finance areas. Many of them also adopt other interesting theoretical areas.
Journal of Insurance and Financial Management, 2023
Using a time series approach, this study investigates how natural resources impact financial deve... more Using a time series approach, this study investigates how natural resources impact financial development from a global perspective over the 1980-2019 period. Some important determinants of financial development (economic growth, trade openness, population growth, and investment) have been added to the model as control variables. Unit root tests have revealed that all the variables are integrated of order one. Johansen cointegration test has shown that the variables are in a long-run equilibrium relationship. The vector error correction model (VECM) has estimated the coefficient of the error correction term (ECT) which suggests that the short-run values of natural resources, economic growth, trade openness, population growth, and investment contribute to financial development converging to its long-run equilibrium level by a 23.63% annual speed of adjustment. The estimated coefficients suggest that global natural resource rent has a statistically-significant negative impact on global financial development in the long-run (thereby validating the financial resource curse), but not in the short-run. Causality test results imply that neither global natural resource rent nor global financial development Granger-causes each other.
Journal of Insurance and Financial Management, 2022
The storm of widespread public and political concerns on corporate misgivings, particularly in th... more The storm of widespread public and political concerns on corporate misgivings, particularly in the financial services industry has spurred growing regulatory demands worldwide making compliance an evergreen item on the leadership and governance agenda. Compliance with prescribed regulatory standards affords the comfort of supervisory cushion and creates a perceived endorsement of organisational practices by regulatory authorities, vested with surveillance and enforcement powers, which mitigate post effects of alleged wrongdoings to some extent.
Journal of Insurance and Financial Management, 2022
The theory of economic equilibria is an important part of mathematical economics, and the theory ... more The theory of economic equilibria is an important part of mathematical economics, and the theory of insurance equilibria a significant special case thereof. The origins of the theory of economic equilibria date back to early 1800's, and it has developed strongly during the last seventy years. The insurance equilibria have been studied since 1970's. We give a literature survey covering the most important research on insurance equilibria since 1980's. After an extensive chapter on the background to economic and insurance equilibria we discuss insurance market equilibrium, reinsurance, insurance markets with asymmetric information, adverse selection, monopolistic / competitive insurance markets, deposit insurance, moral hazard, Internet, signalling, reputation, linear equilibria, Nash equilibria, other research and remarks on the Finnish insurance market. We finish with concluding remarks. The purpose of this paper is to help researchers to discover relevant papers in the field of insurance equilibria.
Journal of Insurance and Financial Management, 2022
For the last 100 years it was been constantly claimed that Ramsey demolished and destroyed Keynes... more For the last 100 years it was been constantly claimed that Ramsey demolished and destroyed Keynes's logical theory of probability as presented in the A Treatise on Probability in 1921. A few, good examples of this 100 year old literature are C. Misak's recent 2020 biography on Ramsey, a number of recent articles in the Stanford Encyclopedia of Philosophy on Ramsey in 2019 and Simon Blackburn's recent September, 2021 article in Mind.
Journal of Insurance and Financial Management, 2022
Bitcoin introduced a cryptographic peer-to-peer version of money that allows online payments to b... more Bitcoin introduced a cryptographic peer-to-peer version of money that allows online payments to be sent directly from one party to another without going through a financial institution. Many recent studies evaluated and criticised Bitcoin's energy consumption through its Proof of Work (PoW) consensus mechanism without evaluating its efficiency compared to classical electronic payment system. Based on physics, information science and economics, we compute and compare the energy consumption and define what is the energy efficiency of both the current monetary payment system and Bitcoin cryptopayment system. We demonstrate that Bitcoin consumes at least 28 times less energy and can run today with 60 times less energy than the classical system. At a single transaction level and with total volumes accounted for, Bitcoin produces equivalent energy efficiency rates or better. When Bitcoin Lightning is compared to Instant Payment scheme, Bitcoin gains exponentially in scalability and efficiency, proving to be millions of times more energy efficient per transaction than Instant Payments.
Journal of Insurance and Financial Management, 2022
Despite the literature has devoted to understand how the aspects of financial and managerial educ... more Despite the literature has devoted to understand how the aspects of financial and managerial educational attainments relate to corporate finance implications, extant literature has paid little attention to whether and how the literacy and learning strategies in financial educational attainments affect the students' learning outcome. Studies have found that Taiwan undergraduates' and high school students' poor financial literacy in risk management capability, investment management capability, tax and lending cognition ability. Improve students' financial literacy and enable them to can solve future financial problems, which is a goal that world education institutions seek to achieve today. The purpose of this article is to explore the guided scaffolding strategy via PjBL learning strategy will achieve exploring problems or processes, focus on learning goals, participation in educational activities, student group cooperation, use of scaffolding technology and presentation of works educational goals and to help design a course that combines financial capability with flipped learning.
Journal of Insurance and Financial Management, 2022
Using official data and new econometric models based on how the industry actually works, we show ... more Using official data and new econometric models based on how the industry actually works, we show the benefits of scale for members are limited, and confined to the non-profit sector which is structured to incur relatively low fixed costs compared with much higher variable costs. In Australian institutional superannuation, most efficiency gains, such as those from economies of scale, are captured as profits for financial intermediaries, with little benefit for members. Recent regulatory reforms on fee disclosure and scale requirements have the unintended consequences of further reducing competition and benefiting the large financial conglomerates.
Journal of Insurance and Financial Management, 2022
The paper provides an introductory guide for active managers that illustrates econometric techniq... more The paper provides an introductory guide for active managers that illustrates econometric techniques for alpha generation in active asset management. For modelling stock market returns three different model types are discussed: (i) fair value models that identify over-and undervaluations, (ii) explanatory return models that allow for scenario forecasting and (iii) forecasting models that provide implementable investment signals. We provide illustrative examples for SP500 data and show how active managers may integrate these models in their investment processes. Our results indicate the relevance of econometric models to add value in active management.
Journal of Insurance and Financial Management, 2022
Minority shareholders refer to those shareholders whose shares in the company are too small in pr... more Minority shareholders refer to those shareholders whose shares in the company are too small in proportion to be able to confer significant influence on the decisions which the firm takes. Therefore, these shareholders are more vulnerable to being exploited by the majority shareholders. Often, they are deprived of a fair share of income from the companies, either in the form of salary or dividends. Moreover, they are not given any real voice in handling business affairs and, at times, are also denied information on important matters. This oppression can lead to harm in corporate enterprises, and the subsequent friction and litigation among shareholders can incur significant costs. According to the Doing Business Report 2019, Pakistan ranked 26 in Protecting Minority Investors indicator of the Ease of Doing Business Index. Thus, it is imperative to improve laws concerning shareholder protection in Pakistan to ensure that no rights are violated. The essay is divided into four parts and aims to elaborate on this matter. The first section analyses the issue created by having a Separate Corporate personality and how minority shareholders can be exploited by errant directors or other shareholders. The second section examines the laws regarding minority shareholders and director duties in Pakistan and compares them with those in the UK. The third section goes over practices in other jurisdictions and analyses whether those can be used as improvements in the context of Pakistan. Finally, the fourth section critically analyses the current situation in Pakistan and gives specific recommendations
Journal of Insurance and Financial Management, 2022
Risk management is a crucial process used to make investment decisions. One of the pillars of any... more Risk management is a crucial process used to make investment decisions. One of the pillars of any investment is the riskreturn trade-off, where a greater degree of risk is supposed to be compensated by a higher expected return. This study Highlights 1. Market performance under common assumptions of normality seems not to accurately portray reality 2. CVaR estimates by Monte Carlo simulation is an effective approach to avoid a risk measure misleading 3. Unforeseen risks and risk blindness for diversified portfolio investments may be avoided by alternative use of Monte Carlo.
Journal of Insurance and Financial Management, 2022
Objectives-This study examines the impact of the remote working system during the COVID-19 pandem... more Objectives-This study examines the impact of the remote working system during the COVID-19 pandemic on millennial employee performance in PT. Bank Mandiri (Persero) Tbk with employee motivation and employee engagement as mediating variables. Method-The study used a quantitative method by implementing a survey method where the data was collected from a questionnaire distributed to 367 respondents in PT. Bank Mandiri, Indonesia. The analysis is based on a sample from the population of millennial employees who have an experience of work from home during the COVID-19 pandemic. The data was analysed using SmartPLS ver.3.0. Results-This study found that remote work has a positive influence on employee performance, employee motivation, and employee engagement. The result also shows a mediating impact of remote work on employee performance through employee motivation and employee engagement. Regarding the pandemic, it is found that during the COVID-19 period, remote work provides millennial employees with flexible working arrangements and less commuting. However, not all employees have a suitable workspace in their homes. Remote work also develops interpersonal relationships between employees and managers. It is also found that millennial employees in Bank Mandiri have enthusiasm and inspiration when working remotely. Conclusion-The remote working system has a significant positive impact on millennial employees' performance, motivation, and engagement in PT. Bank Mandiri (Persero) Tbk during the COVID-19 pandemic situation. There is a mediation impact of remote work on employee performance by employee motivation and employee engagement.
Journal of Insurance and Financial Management, 2022
In 1973, Fischer Black and Myron Scholes published their seminal work on options pricing. Their m... more In 1973, Fischer Black and Myron Scholes published their seminal work on options pricing. Their model relied on a clever hedge which seemingly resulted in a risk-free portfolio. However, further analysis of this portfolio reveals that it may not be risk-free at all. A truly risk-free portfolio must be risk-free with respect to incremental changes to all variables on which the portfolio's value is dependent. However, the Black Scholes hedged portfolio is only risk-free in one dimensionchanges in the underlying stock value. In particular, the hedged portfolio may not be riskfree with incremental changes in time. The conclusion that this portfolio is risk-free is questioned, and with it the Black-Scholes pricing model which is dependent on the risk-free nature of this "hedged" portfolio.
Journal of Insurance and Financial Management, 2022
Owing to its grappling with a motley of intricate socioeconomic, as well as medico-legal, crises,... more Owing to its grappling with a motley of intricate socioeconomic, as well as medico-legal, crises, Haiti has found itself bereft of some of its people, many of whom have had to leave the Caribbean country in search of improved lives elsewhere. Receiving some of the Haitian refugees fleeing abject poverty, unemployment, and other harms and barriers has been the United States, one of Haiti's northern neighbors and a country that has played an outcome-determinative, if not outsized, role in steering the country toward its presently hobbled state. Drawing on the U.S.’s recent treatment of Haitian refugees, this paper argues that U.S. reception of Haitian immigrants rubs salt in the wound of a long history of dehumanizing and oppressive abuses endured by Haitians. Furthermore, and more importantly, this paper posits that U.S. failure to wholly embrace its legal obligation to accept Haitian refugees under international law needs to be understood in the light of the specific horrors inflicted by science, in pre-independence Haiti, on non-consenting, Afro-Haitian experimental subjects. And by extension, such a contextually-nuanced understanding is crucial in shaping the delivery of healthcare services to Haitian refugees fortunate enough to remain in the U.S. —as an awareness and appreciation of the socio-historical context of patients' lived experiences, i.e., their complete social history, can furnish important clues vis-à-vis the presence and etiologies of disease, influence the foci of physical exams, and generally pave the way for the provision of cost-efficient and evidence-based care.
Journal of Insurance and Financial Management, 2022
This article focuses on the limited popularity of unit-linked life insurance in Asia. An analysis... more This article focuses on the limited popularity of unit-linked life insurance in Asia. An analysis of the HNWI and UHNWI market in Asian countries (China, Hong Kong, Singapore, Indonesia) and the insurance models available in unit-linked life insurance for high-net-worth individuals will be used to determine which products insurance companies can use to best meet the requirements and needs of these customer groups. For asset diversification and estate planning through unit-linked life insurance, high net worth private customers have so far primarily had universal life insurance at their disposal. However, the flexibility and potential returns of this insurance model are limited-despite modifications to the concept to find solutions for this. Universal life insurance is currently attractive mainly because of the general low-interest environment and for tax optimisation. Private placement insurances (PPLI), on the other hand, combine maximum flexibility in the implementation of investment strategies and insurance objectives with comprehensive tax optimisa-tion options. PPLIs thus go a long way towards meeting the requirements of HNWIs and UHNWIs. There are many indications that this insurance model is currently entering a relevant growth phase in Asia.
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