bluuebunny/crossref_metadata_2025 huggingface dataset:
Support provider's appraisal detection bias and the efficacy of received support in medical students preparing for an exam
Authors: Knoll Nina , Schulz Ute , Schwarzer Ralf , Rosemeier Hans Peter
Published: September 2006

Matching social support to the recipient's needs requires diagnostic sensitivity on the part of the provider. In particular, support needs to be responsive to the recipient's stress‐related appraisals to be maximally effective. To assess the impact of bias in interpersonal stress assessment, medical students in 43 dyads reported on their own and each other's stress appraisals, social support, affect and performance during a 5‐day preparation period culminating in a multiple choice examination. Less biased perceptions of loss appraisals by support providers within dyads were followed by support transactions associated with lower negative affect and better exam performance among recipients. More biased perceptions of threat appraisals were followed by increases in the recipients' negative affect. Results therefore suggest that support is more effective when the provider understands the recipient's concerns.
‘They're not racist …’ Prejudice denial, mitigation and suppression in dialogue
Authors: Condor Susan , Figgou Lia , Abell Jackie , Gibson Stephen , Stevenson Clifford
Published: September 2006

Social scientific work on the suppression, mitigation or denial of prejudiced attitudes has tended to focus on the strategic self‐presentation and self‐monitoring undertaken by individual social actors on their own behalf. In this paper, we argue that existing perspectives might usefully be extended to incorporate three additional considerations. First, that social actors may, on some occasions, act to defend not only themselves, but also others from charges of prejudice. Second, that over the course of any social encounter, interactants may take joint responsibility for policing conversation and for correcting and suppressing the articulation of prejudiced talk. Third, that a focus on the dialogic character of conversation affords an appreciation of the ways in which the status of any particular utterance, action or event as ‘racist’ or ‘prejudiced’ may constitute a social accomplishment. Finally, we note the logical corollary of these observations – that in everyday life, the occurrence of ‘racist discourse’ is likely to represent a collaborative accomplishment, the responsibility for which is shared jointly between the person of the speaker and those other co‐present individuals who occasion, reinforce or simply fail to suppress it.
Automated Digital Image Processing for Volume Change Measurement in Triaxial Cells
Authors: Gachet P , Geiser F , Laloui L , Vulliet L
Published: September 2006

An automated digital image processing technique is presented for the measurement of specimen volume change during triaxial testing.A digital camera is fixed at a constant distance from the triaxial cell. Pictures taken at various intervals are processed (e.g., using contouring techniques) to extract specimen volume and thus volumetric strain.A calibration procedure requiring a rigid specimen is used to correlate specimen image with specimen volume. The accuracy of the method is discussed on the basis of experimental results. This technique is of particular interest for cases where conventional use of pore-water volume exchange cannot be used to extract total volumetric strain, as is the case when testing unsaturated soils.
Thermal Stability Testing of Refractory Specimen
Authors: Volkov Husović T
Published: September 2006

The most important properties usually measured for refractories are working temperature and thermal stability. Thermal stability of the alumina based samples was measured using standard laboratory procedure, water quench test (JUS.B.D.8.319). The ImagePro Plus program was used for image analysis of deterioration monitoring of the samples before, during, and after water quench test. Mechanical characteristics were considered such as strength, dynamic modulus of elasticity resulting from resonance frequency measurements, as well as ultrasonic velocity. In this work correlation between deterioration, ultrasonic vtelosity, and strength on thermal stability of the samples were investigated. The results were used for validation of the model for the thermal stability behavior prediction of the refractory.
Using Bacteriophages to Prevent Furunculosis Caused by Aeromonas salmonicida in Farmed Brook Trout
Authors: Imbeault Sandra , Parent Serge , Lagacé Michel , Uhland Carl F. , Blais Jean-François
Published: September 2006

Fish aquaculture faces important losses as a result of bacterial resistance to antibiotics. Bacteriophages have proven a useful alternative therapy in other domains, but remain to be tested with fish. The interaction between Aeromonas salmonicida HER 1107, bacteriophage HER 110, and brook trout Salvelinus fontinalis was studied in 70-L aquariums maintained at 9°C. Populations of A. salmonicida (108 colony-forming units per milliliter) declined by six log units (base 10) in 3 d when bacteriophage HER 110 was introduced in a multiplicity of infection factor of 1. Concentrations of bacteriophages and bacteria in the open water of the aquariums were 2–3 log units lower than those in gravel interstitial water. However, the relative drop in bacterial populations with time was the same in both environments. Addition of the bacteriophage HER 110 delayed by 7 d the onset of furunculosis in brook trout. Further addition of A. salmonicida HER 1107 showed that bacteriophages remained in the aquariums. Mutants of the bacterium were isolated and used as targets for bacteriophage HER 110 and nine other phages. The tests revealed that more than one phage could infect A. salmonicida HER 1107 and that mutants resistant to bacteriophage HER 110 were sensitive to one or more phages. Bacteria resistant to bacteriophage HER 110 had a slower generation time than the original strain, and the success rate of replating in tryptic soy agar (TSA) was very low. More than 25% of the mutants seemed to revert to the original-strain phenotype after a first replating in TSA. All mutants were sensitive to three or more phages. Finally, stock cultures of 109 plaque-forming units per milliliter of bacteriophage HER 110 decreased by only one log unit in 80 d when held at 4°C in liquid brain–heart infusion broth culture medium. These results suggest that bacteriophage combinations could be successfully used in preventive programs on fish farms.
EXPLORING THE MOTIVATION FACTORS OF CHARITABLE GIVING AND THEIR VALUE STRUCTURE: A CASE STUDY OF SEOUL, KOREA
Authors: Hur Mann Hyung
Published: September 2006

This study explored the motivation factors of charitable giving and their value structure. Both qualitative and quantitative methods were employed. Six components were found which individually stand for the dimensions of the motivation factors of charitable giving: a good deed, altruism, a desire for social responsibility, a desire for the common good, mass psychology, and a showing off reward-expecting manner. Two different networks among the factors of charitable giving were shown: one represented a notion of social and individual virtue, and the other referred to a notion of selfishness. Therefore, it can be said that people give to charities both in order to demonstrate their virtue, and to satisfy their selfishness.
LONELINESS OF PEOPLE WITH PHYSICAL DISABILITIES
Authors: Rokach Ami , Lechcier-Kimel Rachel , Safarov Artem
Published: September 2006

Physical disability has a profound effect on one's quality of life, social intercourse and emotional well-being. Loneliness has been found to be a frequent companion of those afflicted with chronic illnesses that result in physical disabilities. This study examined the qualitative aspects of that loneliness. Five hundred and ninety-three participants volunteered to answer a 30-item yes/no questionnaire. Those with physical disabilities were compared to the nondisabled (general population), and then further divided into five homogeneous subgroups (i.e., those with multiple sclerosis, osteoporosis, Parkinson's, arthritis, and “other” disabilities) which were compared to each other and to the general population sample who are healthy and not chronically ill. Results indicate that the loneliness of those with physical disabilities differs significantly from that of the general population.
LAY PROTOTYPES OF ILLNESS AMONG A NORTHERN SOTHO COMMUNITY IN SOUTH AFRICA
Authors: Peltzer Karl , Mmusi Sheila , Phaswana Motlatso , Misi Titus
Published: September 2006

Illness representations have been shown to differ across cultures. The aim of the study was to study disease terminology and lay prototypes among a Northern Sotho community in South Africa. The sample for a free listing of disease terms included 41 (55%) women and 34 (45%)
men, with a mean age of 36 years (SD=5.6, range 18 to 75 years). The sample for pile sorting of disease terms included 80 Northern Sotho-speaking third-year students from the University of Limpopo; 44 women, 36 men, mean age, 23.4 years (SD=3.4). From free listing of disease
terms 50 were selected for pile sorting. Using hierarchical cluster analysis the following clusters could be identified: (1) respiratory problems, (2) internal body problems and sexually transmitted diseases, (3) chronic diseases and head diseases, (4) child diseases and mental problems, (5)
child diseases and cancer, (6) feet problems, (7) gastrointestinal diseases. There was homogeneity of features within cluster and difference between clusters.
TEACHERS' EXPECTATIONS OF THE IMPACT OF E-LEARNING ON KUWAIT’S PUBLIC EDUCATION SYSTEM
Authors: Aldhafeeri Fayiz , Almulla Mohammed , Alraqas Bandar
Published: September 2006

E-learning has emerged as a necessity to meet the challenges posed by the development of information technology and its potential for greater access to knowledge. E-learning technology is becoming more visible in schools in many parts of the world. Kuwait, like many other countries,
has started to study the adoption of an E-learning system in K-12. E-learning in schools must meet certain standards that make students competent in a number of areas. The purpose of this study is to investigate teachers' opinions of the impact of E-learning on the public education system
in Kuwait. Based on responses by 519 teachers, to a questionnaire survey consisting of 36 items, the study identifies the following six educational improvement areas: 1) basic operations and computer concepts; 2) ethical and human issues; 3) productivity tools; 4) research tools; 5) problem-solving
and decision-making tools; and 6) communication tools.
HUMANISTIC ATTITUDES, VALUES, SYSTEM JUSTIFICATION, AND CONTROL BELIEFS IN A TURKISH SAMPLE
Authors: Gürşimşek IşIk , GöreGenli Melek
Published: September 2006

The values, humanistic attitudes, perceived democratic level and justification of the educational system and personal control beliefs about the educational system in Turkey were investigated. The sample consisted of 211 teacher candidates and 155 teachers from different public schools in İzmir. Data were gathered using the Polarity Scale (Tomkins, Stone, & Schaffner, 1988), Schwartz Value Scale (Sagiv & Schwartz, 1995), and the following three scales which were developed for this study: Perceived Democracy in Education System Scale, Control Beliefs Scale, and System Justification Scale. Results demonstrate significant differences between the teachers and teacher candidates for control beliefs, system justification, and some dimensions of Schwartz's Value Scale. Also age and sex are seen to be related to humanistic values and perceived democratic level of the educational system. Multiple correlations are determined between the beliefs, values, and attitudes of participants in relation to different dimensions of the education system. The results are discussed in relation to democratic education.
LOCUS OF CONTROL AND THE ATTRIBUTION FOR POVERTY: COMPARING LEBANESE AND SOUTH AFRICAN UNIVERSITY STUDENTS
Authors: Nasser Ramzi , Abouchedid Kamal
Published: September 2006

The attitudes of a sample of 443 Lebanese and South African college students towards the causes of poverty as measured by their locus of control and socio-demographic background were studied. Cross-national differences and personality style constructs of external and internal locus of control were used in a MANCOVA design. No significant interaction differences appeared between national status and locus of control, which gave no support to the main hypothesis of this study that respondents from individualistic cultures (South Africa) have internal locus of control and make more individualistic attributions of poverty. Lebanese students were more structuralistic, and had more external than internal locus of control than South Africans. The independent variable of class did not appear as a predictor to the structural attribution for poverty. Hence, university education may be the most important factor in the attributions of poverty. Conceptualization in the design as to how individuals see poverty outside their immediate environment and how this can affect the formation of their poverty attitudes are suggested as areas for further research.
ITEM CHARACTERISTICS ANALYSIS OF ATTITUDES TOWARDS SMOKING SCALE BY LOG-LINEAR MODELS AND T TEST
Authors: Kelecioğlu Hülya
Published: September 2006

A Likert-type scale was used in analysis of the Attitudes Towards Smoking Scale (Tezbaşaran & Kelecioğlu, 2004) of item characteristics investigated by hierarchical log-linear models and T test. Differential item functioning according to gender and item discriminations
was determined by using hierarchical log-linear models. A total of 16 items which were high item discriminate and not gender DIF were identified. Alpha coefficent was found to be 0.91. Scale items were also analyzed by T test and another 16 were obtained. This scale's Cronbach
α coefficent was found to be 0.93. No significant difference between these two Cronbach α coefficients was found by using Fischer's z test. Eight items which were detected as gender DIF in log-linear models were obtained according to the T test scale.
Adverse Selection
Authors: Fombaron Nathalie , Jeleva Meglena
Published: September 2006

The standard adverse selection problem arises when individuals know their level of risk but the insurer does not. Since the individuals' informational advantage is directly related to the insurer's cost of providing a contract, adverse selection prevents the mutualization principle from working. Consequently, the insurance market may not exist for some risk types, and if it exists, may not be efficient. Several mechanisms, substituable or complementary, have been proposed in the theoretical literature to circumvent this resource allocation problem: self‐selection mechanism, statistical categorization, and multiperiod contracts.
Alternative Risk Transfer
Authors: Neuhaus Walther
Published: September 2006

This paper gives a summary of insurance and reinsurance contracts known as ART (alternative risk transfer). The purpose of ART is to provide more efficient ways of risk transfer by combining insurance and reinsurance techniques with capital market techniques, and by accessing new sources of risk capital.
A
merican
S
ociety of
P
ension Actuaries
Authors: Iliffe Amy E.
Published: September 2006

ASPA is a national organization of retirement plan professionals dedicated solely to the pension field. ASPA's mission is to educate pension actuaries, consultants, administrators, and other benefits professionals, and to preserve and enhance the private pension system as a part of the development of a cohesive and coherent national retirement income policy. Membership categories are available for actuaries, consultants and administrators, associated professionals, and other affiliate members. ASPA offers an education and examination program, informative conferences and workshops around the country, and publishes a newsletter and journal providing news on the latest developments in the pension industry.
Aquaculture Insurance
Authors: Theodorou John A. , Tzovenis Ioannis P.
Published: September 2006

Modern marine aquaculture emerged a few decades ago, triggered by the wild catch decline. Global production more than doubled between 1987 and 1997 and the prospects for future growth especially in Europe are very promising.

During the last thirty years, the sector was a high‐risk activity as production technology was – and still is – developing with many experimental farms and a semiacademic character of most hatcheries. Reasonably, nonmanageable risks could be transferred to third parties by means of insurance, and as insurance coverage was important for the banks to finance the new sector, aquaculture drew the attention of insurance underwriters to focus on the venture's technology, history, and experience, financial strength, presentation, and technical qualities. However, aquaculture insurance treads on thin ice as there are few independent consultants and fewer loss adjusters with appropriate experience; protocols are variable, often propriety rendering it difficult to ascertain the claims, or discern mismanagement. Therefore, definition of risks and appropriate counteractions need to be established.
Asset Management
Authors: Sherris Michael
Published: September 2006

Asset management is integral to the actuarial management of any financial security system, although the earliest practical developments in actuarial science took place mostly in life insurance. In more recent years, there has been an increased integration of modern financial theories into actuarial science and the adoption of actuarial techniques in areas of asset management such as credit risk and operational risk.

This article will give a brief overview of the historical development of asset management in actuarial science, then briefly outline major asset management strategies used, as well as key models that have been developed, and the issues in implementing asset management strategies.
Asset Shares
Authors: Forfar David O.
Published: September 2006

The article looks at asset shares, a concept primarily used in the United Kingdom in respect of with‐profits business but applicable to any policy where the bonus distribution is at the discretion of the insurance company.
Assets in Pension Funds
Authors: Bowie David
Published: September 2006

In countries with large scale private and public funded pension arrangements, for example, the United States, Canada, Japan, the Netherlands, and the United Kingdom, one of the key decisions is how the contributions into the fund should be invested to best effect. The investment decision typically results in some form of risk sharing between members and sponsor in terms of (1) the level of contributions required to pay for all promised benefits, (2) the volatility of contributions required, and (3) the uncertainty of the level of benefits actually deliverable should the scheme be wound up or have to be wound up. Some of the risks associated with the pension benefits have a clear link with the economy and hence with other instruments traded in the financial markets. Others, such as demographic risks and the uncertainty as to how members or the sponsor will exercise their options, which are often far from being economically optimal, are less related to the assets held in the fund.

This article describes broadly what assets are available to the institutional investor, how an investor might go about deciding on an asset allocation, and explore what the possible consequences of an asset allocation might be.
ASTIN
Authors: Lemaire Jean , Bühlmann Hans
Published: September 2006

ASTIN is the non‐life section of the International Actuarial Association. Founded in 1957, it publishes the
ASTIN Bulletin
semiannually and organizes annual colloquia. Its membership stands at 2200.
Background Risk
Authors: Gollier Christian
Published: September 2006

The presence of a background risk is believed to reduce the consumer's willingness to accept other independent risks. Under expected utility, this is true only under some restrictions on the utility function.
B
ayesian Claims Reserving
Authors: de Alba Enrique
Published: September 2006

Claims reserving methods are usually classified as stochastic or nonstochastic (deterministic) depending on whether or not they allow for random variation. Bayesian methods fall within the first class. Being stochastic, they allow the actuary to carry out statistical inference of reserve estimates as opposed to deterministic models, like the traditional chain‐ladder. As an inference process, the Bayesian approach is an alternative to classical or frequentist statistical inference. From a theoretical point of view, Bayesian methods have an axiomatic foundation and are derived from first principles. From a practical perspective, Bayesian inference is the process of fitting a probability model to a set of data and summarizing the result by a probability distribution on the parameters of the model and on unobserved quantities, such as predictions for new observations.
B
ayesian Statistics
Authors: Jewell William S.
Published: September 2006

Bayes' Law of Inverse Probability provides a natural, probability‐based approach to statistical inference, in which prior information is combined with experimental data to give distributions of outcomes for parameter estimation or prediction of future results.

William S. Jewell sadly passed away in January 2003, shortly after having submitted his manuscript of the present article. The Editors‐in‐Chief and Publisher are grateful to Bent Natvig for going through the manuscript and the proofs, and for carrying out some minor editing.
B
ernoulli Family
Authors: Teugels Jozef L.
Published: September 2006

We survey the main achievements in probability and actuarial sciences of some of the most prominent members of the Bernoulli family.
Beta Function
Authors: Drekic Steve
Published: September 2006

This article summarizes some of the key mathematical/computational properties associated with the beta function and incomplete beta function, which find use in applications to probability theory and parametric claims modeling.
Black–Scholes Model
Authors: Henderson Vicky
Published: September 2006

The Black–Scholes model was the first, and is the most widely used model for pricing options. The model and associated call and put option formulas have revolutionized finance theory and practice, and the surviving inventors Merton and Scholes received the Nobel Prize in Economics in 1997 for their contributions.

Black and Scholes and Merton introduced the key concept of dynamic hedging whereby the option payoff is replicated by a trading strategy in the underlying asset. They derive their formula under log‐normal dynamics for the asset price, allowing an explicit formula for the price of European call and put options.

Remarkably their formula (and its variants) have remained the industry standard in equity and currency markets for the last 30 years. Despite the assumptions underpinning the formula being somewhat unrealistic, options prices computed with the formula are reasonably close to those of options traded on exchanges. To some extent, the agreement in prices may simply reflect the fact that the Black–Scholes model is so popular.
Bonus–Malus Systems
Authors: Lemaire Jean
Published: September 2006

Bonus‐malus is the most common form of a posteriori rating in automobile third‐party liability insurance. The policyholder moves around the classes of a Markov chain according to his annual number of claims. Claim‐free years are rewarded by premium discounts or bonuses; at‐fault accidents are penalized by surcharges called maluses. The different principles underlying the design and evaluation of bonus‐malus systems are reviewed.
Borch's Theorem
Authors: Lemaire Jean
Published: September 2006

Borch's theorem, the most important application of utility theory and game theory in insurance, characterizes the set of Pareto optimal treaties in an exchange of risk among policyholders, insurers, or reinsurers. Concepts from game theory, such as the core or a value for bargaining games, narrow down the set of acceptable treaties.
Capital Allocation for
P
&
C
Insurers: A Survey of Methods
Authors: Venter Gary G.
Published: September 2006

Capital allocation is never an end in itself, but rather an intermediate step in a decision‐making process. Trying to determine which business units are most profitable relative to the risk they bear is a typical example. Pricing for risk is another.

While the general topic is capital allocation, this article looks at methods of answering the questions that capital allocation addresses. The following four basic approaches will be reviewed:

Selecting a risk measure and an allocation method, and using them to allocate all capital.

Comparing the actual versus model pricing by a business unit.

Computing the cost of the marginal capital needed for or released by target strategies.

Evaluating the profitability in comparison to a leveraged mutual fund.
Catastrophe Models and Catastrophe Loads
Authors: Meyers Glenn
Published: September 2006

Natural catastrophes such as earthquakes, hurricanes, tornadoes, and floods have an impact on many insurers, and the accumulation of losses to an insurer can jeopardize the financial well‐being of an otherwise stable, profitable insurer. Hurricane Andrew, in addition to causing more than $16 billion in insured damage, left at least 11 companies insolvent in 1992. The 1994 Northridge earthquake caused more than $12 billion in insured damage in less than 60 seconds.

Fortunately, such events are infrequent. But it is exactly their infrequency that makes the estimation of losses from future catastrophes so difficult. The scarcity of historical loss data makes standard actuarial techniques of loss estimation inappropriate for quantifying catastrophe losses. Furthermore, the usefulness of the loss data that does exist is limited because of the constantly changing landscape of insured properties.

It is these two aspects of catastrophic losses – the possibility that a quick accumulation of losses can jeopardize the financial well‐being of an insurer, and the fact that historical loss information provides little help in estimating future losses – that this article addresses.
Central Limit Theorem
Authors: Heyde C.C.
Published: September 2006

The
Central Limit Theorem
(CLT) is generally regarded as a generic name applied to any theorem giving convergence in distribution, especially to the normal law, of normed sums of an increasing number of random variables. Results of this kind hold under far reaching circumstances, and they have, in particular, given the normal distribution a central place in probability theory and statistics.
Change of Measure
Authors: Rolski Tomasz
Published: September 2006

Change of measure is a technique used for deriving saddlepoint approximations, bounds or optimal methods of simulation. It is used in risk theory.
Cohort
Authors: Eben Kryštof , Malý Marek
Published: September 2006

A cohort is a group of subjects, identified by a common characteristic, which is studied over a period of time with respect to an outcome – event of interest. The defining characteristic is often year of birth. The event of interest may be death or disease onset or generally any event that possesses a well‐defined intensity of occurrence.

In actuarial science, purchase of a life or medical insurance policy may play the role of defining characteristic – death or insurance claim is the event of interest in this case. On the other hand, marketing of insurance products may require a study of birth cohorts with respect to purchasing life or medical insurance. Here, obviously the purchase is the event of interest.
Coinsurance
Authors: Priest Colin
Published: September 2006

This article describes the term coinsurance and how it applies to insurance, reinsurance, and insurance pools.
Combinatorics
Authors: Holst Lars
Published: September 2006

To illustrate combinatorial probability, we discuss some examples connected with urn models, the occupancy problem, the matching problem and cycles in random permutations.
Commercial Multi‐Peril Insurance
Authors: Lynch James
Published: September 2006

Commercial multiple peril insurance is the most popular commercial package policy in US property and casualty insurance. It typically combines several property and general liability coverages under a single policy, creating a convenience in coverage for the insured. It often is sold at a discount, mainly reflecting better experience among risks that buy the package. It is rated by applying factors known as package modifications at the end of the rating process. This permits each coverage in the package to be analyzed in combination with results from the monoline coverage.
Comonotonicity
Authors: Vyncke David
Published: September 2006

In insurance, one is often interested in the distribution of a sum of random variables like the aggregate claim amount in a portfolio. While the assumption of mutual independence between the components of the sum is often made for mathematical convenience, reality shows that dependence is the rule rather than the exception. However, the dependence structure among the components is usually unknown. Comonotonicity provides a formal basis for a dependence structure that produces the least favorable aggregate claim when one only knows the marginal distributions of the components.
Compound Poisson Frequency Models
Authors: Panjer Harry H.
Published: September 2006

This article describes the role of the compound Poisson distribution in the modeling of the number of insurance losses or claims. Some examples and related results are given.
Compound Process
Authors: Cai Jun
Published: September 2006

In this article, we review the properties of compound Poisson processes and consider the generalizations of compound Poisson processes. Further, we discuss topics such as the limit laws of compound processes, the approximations to the distributions of compound processes, and the asymptotic behaviors of the tails of compound processes.
Conference of Consulting Actuaries
Authors: Noncek Matthew D.
Published: September 2006

The Conference of Consulting Actuaries is a US‐based actuarial organization dedicated to strengthening both the practice of actuarial consulting and the ability of its members to better serve their clients and the public. The organization sponsors two major actuarial meetings to provide continuing education (the CCA Annual Meeting and the Enrolled Actuaries Meeting), and publishes an annual publication (
The Proceedings of the Conference of Consulting Actuaries
) and a newsletter (
The Consulting Actuary
) for the benefit of its members.
Continuous Parametric Distributions
Authors: Klugman Stuart A.
Published: September 2006

Actuaries model a variety of uncertain phenomena, foremost among them, the amount of a claim and the time until a claim. Parametric probability distributions provide simple models that often adequately describe the process. This article lists a large number of such models and briefly describes their properties.
Convolutions of Distributions
Authors: Cai Jun
Published: September 2006

This article reviews the properties of convolutions of distributions and considers probability models in insurance that are related to the convolutions.
Coupling
Authors: Thorisson Hermann
Published: September 2006

Coupling is a probabilistic tool that links two random variables (or stochastic processes) in such a way that their properties become similar, sometimes even identical. Important and readily proved properties of one of the components are then transmitted to a less accessible second component.
C
ramér,
H
arald (1893–1985)
Authors: Martin‐Löf Anders
Published: September 2006

Harald Cramér (1893–1985), besides his work on probability and mathematical statistics, extended Filip Lundberg's collective risk theory to the point that it became a part of the contemporary theory of stochastic processes; he used the so‐called Wiener–Hopf method to systematically treat the ruin problem.
Cramér–Lundberg Asymptotics
Authors: Cai Jun
Published: September 2006

This article considers the Cramér–Lundberg asymptotics that include the Cramér–Lundberg asymptotic formula and the Lundberg inequality for ruin probabilities in various risk models. The generalizations of the Cramér‐Lundberg condition and asymptotics are discussed as well.
Credibility Theory
Authors: Norberg Ragnar
Published: September 2006

This survey of actuarial credibility theory traces its origins, describes its evolutionary history, gives an account of its main issues and results, and assesses its merits with a view to related work in statistical science.
Credit Scoring
Authors: Hand David J.
Published: September 2006

‘Credit scoring’ describes the formal statistical and mathematical models used to assist in running financial credit‐granting operations, primarily to individual applicants in the personal or retail consumer sectors. The range of applicability of such tools is vast, covering areas such as bank loans, credit cards, mortgages, car finance, hire purchase, mail order, and others.
De
F
inetti,
B
runo (1906–1985)
Authors: Pitacco Ermanno
Published: September 2006

After an essential biography, the scientific work of de Finetti is described with particular emphasis on his contributions to actuarial sciences.
Deductible
Authors: Buchanan Robert , Priest Colin
Published: September 2006

This article explains the operation of deductibles and franchises.
Dependent Risks
Authors: Denuit Michel , Dhaene Jan
Published: September 2006

In risk theory, all the random variables (r.v.s, in short) are traditionally assumed to be independent. It is clear that this assumption is made for mathematical convenience. In some situations however, insured risks tend to act similarly. In life insurance, policies sold to married couples involve dependent r.v.s (namely, the spouses' remaining lifetimes). Another example of dependent r.v.s in an actuarial context is the correlation structure between a loss amount and its settlement costs (the so‐called ALAE's). Catastrophe insurance (i.e. policies covering the consequences of events like earthquakes, hurricanes or tornados, for instance), of course, deals with dependent risks.
Deregulation of Commercial Insurance
Authors: Klein Robert
Published: September 2006

This article utilizes the US experience as a primary point of reference with some discussion of insurance deregulation in other countries. The concept of insurance deregulation contemplates a shifting of regulatory emphasis from prior approval of commercial lines rates and forms to a more competitive regulatory system coupled with more intensive regulatory monitoring of market competition and strategic intervention when required. It is important to stress that this does not involve an abrogation of regulatory oversight, but rather a restructuring of regulatory functions to facilitate more efficient and competitive markets combined with an array of regulatory activities, tools, and authorities to support strategic, proactive regulatory intervention if problems develop.
Dirichlet Processes
Authors: Hjort Nils Lid
Published: September 2006

Dirichlet processes form a class of random probability distributions, useful for nonparametric Bayesian analysis and for other areas of probability theory and statistics. We survey different representations of these processes as well as some important extensions, and indicate their properties and scope.
Discrete Parametric Distributions
Authors: Panjer Harry H.
Published: September 2006

This article describes some counting distributions that are frequently used in modeling the number of insurance claims, the number of losses, the number of payments, or the number of insurance events such as accidents or fires.
Discretization of Distributions
Authors: Panjer Harry H.
Published: September 2006

This article describes some simple methods for discretizing a distribution on a uniform span. It is necessary to discretize the severity (loss amount) distribution in order to implement recursive methods for computing the aggregate claims (or loss) distribution.
D
odson,
J
ames (1710–1757)
Authors: Teugels Jozef L.
Published: September 2006

Dodson has been crucial in the foundation of the first life insurance company based on scientific principle.
DFA
—Dynamic Financial Analysis
Authors: Blum Peter , Dacorogna Michel
Published: September 2006

Dynamic Financial Analysis (‘DFA’) is a systematic approach based on large‐scale computer simulations for the integrated financial modeling of non‐life insurance and reinsurance companies aimed at assessing the risks and the benefits associated with strategic decisions.

The most important characteristic of DFA is that it takes an integrated, holistic point of view, contrary to classic financial or actuarial analysis in which different aspects of one company were considered in isolation from each other. Specifically, DFA models the reactions of the company in response to a large number of interrelated risk factors including both underwriting risks – usually from several different lines of business, as well as asset risks. In order to account for the long time horizons that are typical in insurance and reinsurance, DFA allows dynamic projections to be made for several time periods into the future, where one time period is usually one year, sometimes also one quarter. DFA models normally reflect the full financial structure of the modeled company, including the impact of accounting and tax structures. Thus, DFA allows projections to be made for the balance sheet and for the profit‐and‐loss account (’P&L’) of the company. Technically, DFA is a platform using various models and techniques from finance and actuarial science by integrating them into one multivariate dynamic simulation model. Given the complexity and the long time horizons of such a model, it is not anymore possible to make analytical evaluations. Therefore, DFA is based on stochastic simulation (also called Monte Carlo imulation), where large numbers of random scenarios are generated, the reaction of the company on each one of the scenarios is evaluated, and the resulting outcomes are then analyzed statistically.
Empirical Distribution
Authors: Klugman Stuart A.
Published: September 2006

When constructing probability models, it may be sufficient to let the data speak for itself. That is, the model is designed to look like the data, the assumption being that the data is of sufficient quantity and quality to adequately represent the population. Such models are called empirical distributions.
Employment Practices Liability Insurance
Authors: Barto Morris
Published: September 2006

Employment Practices Liability Insurance (EPLI) is gaining in popularity both within and outside the US. This policy responds to claims by employees against employers for wrongful employment practices. Such claims include allegations of wrongful refusal to hire, wrongful termination, sexual harassment, and discrimination based on age, race, ethnicity, or disability. Such claims also include claims for retaliation against workers for participating in legally protected activity. EPLI does not cover bodily injury or property damage, but responds for employees' economic losses as well as mental anguish. The coverage is almost always written on a claims‐made basis with expenses eroding limits. EPLI business tends to be highly segmented depending on the limits of coverage, the size of the self‐insured retention or deductible, the size and sophistication of the policyholders, and whether the policyholders are public or private entities.
Estimation
Authors: Pitts Susan M.
Published: September 2006

We consider methods of parametric and nonparametric estimation for claim sizes and claim number distributions, and also for quantities of interest in risk theory such as compound distributions, the adjustment coefficient and the probability of ultimate ruin.
Excess‐Of‐Loss Reinsurance
Authors: Splitt Andrea
Published: September 2006

Excess‐of‐loss covers belong to the category of nonproportional reinsurance treaties. They provide protection against individual loss events, exceeding a certain agreed amount or level, known as the
deductible
. The types of excess‐of‐loss cover are distinguished depending on the event definition applied: per‐risk excess‐of‐loss (per‐risk XL) and per‐event excess‐of‐loss (per‐event XL). Apart from a cover limit, that is, the maximum coverage per loss (event), further limitations of cover have to be defined to limit the overall loss burden from several losses occurring during the treaty period. These are referred to as
reinstatement
or the
annual aggregate limit
(AAL). The following peculiarity of long‐tail business is of particular importance to the design and pricing of nonproportional reinsurance arrangements: the increase in the money amount of the claim during the run‐off, known as
claims inflation
. Index clauses serve to ensure that this increase is not borne by the reinsurer alone, but is divided between the primary insurer and the reinsurer.
Foreign Exchange Risk in Insurance
Authors: Hang Chan Ngai
Published: September 2006

This note aims at providing an overview of foreign exchange risk related to actuarial science. After reviewing basic concepts of foreign exchange risk and related financial theory and risk management techniques, references to actuarial studies are provided.
Extreme Value Distributions
Authors: Beirlant Jan
Published: September 2006

Extreme value distributions arise as nondegenerate limits of sequences of maxima from pure random samples. The generalized extreme value distribution encompasses all such limiting distributions. We review the estimation of parameters for this model and discuss actuarial applications.
Extreme Value Theory
Authors: Albin J.M.P.
Published: September 2006

In insurance one often has to deal with extremal measurements like large claims. Comparable to central limit theory for sums of random variables, extreme value theory provides asymptotic and approximating results for these largest data values. The case of independent claims can be dealt with using three traditional extremal types. These types also appear in the stationary case when the dependence is not too strong.
Failure Rate
Authors: Cai Jun
Published: September 2006

In this article, we survey the properties of the failure rate function and issues in insurance related to the failure rate.
Finance
Authors: Brockett Patrick
Published: September 2006

Finance and insurance are very similar in nature: they both (now) consider the value of a financial instrument or an insurance policy or a firm to be the discounted present value of the future cash flows they provide to their holder. Research in the fields of finance and insurance have been converging, with products and valuation techniques from one field applying to and being used in the other field. Risk pooling, risk sharing, and risk transfer are the essence of insurance and the topic of study in modern finance, with both fields interested in valuing contingent claims, either claims due to financial or liability obligations, market changes, foreign exchange rate, or due to interest rate changes or payments due, contingent upon the occurrence of a particular type of insured loss (e.g. fire insurance payments, life insurance payments, automobile insurance payments, etc.). Thus, finance and insurance are more and more linked, and products in each area are less and less distinct.
Derivative Securities
Authors: Cuthbertson Keith
Published: September 2006

There are three main types of derivative securities, namely futures, options, and swaps. Derivative securities are assets whose value depends on the value of some other (underlying) asset and their value is
derived
from the value of this underlying asset. A key feature of futures and options is that the contract calls for
deferred delivery
of the underlying asset (e.g. AT&T shares), whereas spot assets are for
immediate delivery
(although in practice, there is usually a delay of a few days). Derivative securities can be used by hedgers, speculators, and arbitrageurs.

Derivatives often receive a ‘bad press’ partly because there have been some quite spectacular derivatives losses. Perhaps the most famous are the losses of Nick Leeson who worked for Barings Bank in Singapore and who lost $1.4 bn when trading futures and options on the Nikkei‐225, the Japanese stock index. This led to Barings going bankrupt. More recently in 1998, Long Term Capital Management (LTCM), a hedge fund that levered its trades using derivatives had to be rescued by a consortium of banks under the imprimatur of the Federal Reserve Board. This was all the more galling since Myron Scholes and Robert Merton, two academics who received the Nobel Prize for their work on derivatives were key players in the LTCM debacle. The theory of derivatives is a bit like nuclear physics. The derivative products that they have spawned can be used for good but they can also be dangerous, if used incorrectly.
Financial Insurance
Authors: Polanskyj Peter
Published: September 2006

Putting aside any distinction between the concepts of financial insurance and financial guaranty insurance, one of the most fundamental definitions available for financial guaranty insurance is an insurance contract that guarantees a cash (or cash equivalent) payment from a financial obligation, or a stream of such payments, at specified points of time.
Financial Markets
Authors: Nitzsche Dirk
Published: September 2006

Financial markets provide the antithesis of Polonius' advice to his son in Shakespeare's
Hamlet
, of ‘neither a borrower or lender be’. Individuals benefit not only from consuming goods and services that are primarily produced by firms but also by the government sector (e.g. education, health, and transport facilities in many countries). To produce ‘goods’, firms and the government often have to finance additional current and capital investment expenditures by borrowing funds. Financial markets and institutions facilitate the flow of funds between surplus and deficit units.
Financial Pricing of Insurance
Authors: D’arcy Stephen P.
Published: September 2006

Financial pricing models bring together the underwriting and investment components of an insurance contract. These models are used to attempt to determine the appropriate rate of return for a line of business, the minimum premium level at which an insurer would be willing to write a policy, or target rate of return for an insurance company in aggregate.
Financial Reinsurance
Authors: Halliwell Leigh J.
Published: September 2006

The article presents ‘financial reinsurance’ as a continuum between finance and reinsurance. It discusses features of finance and reinsurance, illustrates simple combinations of the two, and describes basic financial‐reinsurance contracts. It concludes with the benefits and dangers of financial reinsurance, its accounting treatment, and the need to define risk transfer.
Reinsurance Forms
Authors: Goovaerts Marc J. , Vyncke David
Published: September 2006

Reinsurance plays an important role in reducing the risk in an insurance portfolio. In this article, we give an overview of the most relevant classical reinsurance concepts from a practical point of view.
Frailty
Authors: Hougaard Philip
Published: September 2006

A frailty model is a random effects model for survival data or other time‐to‐event data. Conceptually, frailty models are similar to the normal distribution mixed models, but they are dedicated to the survival data case, where observations may be censored and where updating is natural as the events happen over time. In actuarial science this covers both life/pension for married couples, and repeated events, like car accidents. The frailty is the common random term and is assumed to enter multiplicatively in the hazard function. The gamma distribution is the most commonly used for the frailty, but other distributions may also be useful. Over the last 20 years, both theory and applications have developed so that by now the frailty models have almost become standard models.