Artificial intelligence (AI) is a tool that financial intermediaries and insurance companies use or are willing to use in almost all their activities. AI can have a positive impact on almost all aspects of the insurance value chain: pricing, underwriting, marketing, claims management, and...

ESG (Environmental, Social and Governance) assets provide risk diversification even to investors who do not have green preferences. Acquiring information on those assets is an additional cost, that can nullify the diversification benefit. We prove that, if returns are predictable and shocks in...

This paper studies the consequences of capturing non-linear dependence among the covariates that drive the default of different obligors and the overall riskiness of their credit portfolio. Joint default modeling is, without loss of generality, the classical Bernoulli mixture model. Using an...

The risk appetite of insurance companies fluctuates over time in a quasi cyclical fashion. When their capitalization is high (low), companies choose portfolios with a high (small) share of risky assets. We show that this phenomenon may have the same source as the underwriting cycle, namely...

This paper describes the rapid and dynamic pace of Artificial Intelligence (AI) and Machine Learning (ML) developments that have revolutionized the insurance sector, and discusses their interpretability. AI content-based processing of information includes image and video analysis, facial...