Purpose – This paper aims to propose a new method for credit risk allocation among economic agents. Design/methodology/approach – The paper considers a pool of bank loans subject to a credit risk and develops a method for decomposing the credit risk into idiosyncratic and systematic...

Purpose – This paper aims to propose a new method for credit risk allocation among economic agents. Design/methodology/approach – The paper considers a pool of bank loans subject to a credit risk and develops a method for decomposing the credit risk into idiosyncratic and systematic...

In the standard model for insurance demand, the risk is totally exogenous and the insurance premium is paid for out of riskless wealth. This model yields results that are mostly in contradiction to everyday observation and have been used to question the pertinence of expected utility theory on...

Large systematic risks, such as those arising from natural catastrophes, climatic changes and uncertain trends in longevity increases, have risen in prominence at a societal level and, more particularly, have become a highly relevant issue for the insurance industry. Against this background, the...

The paper is written on the occasion of the 25th anniversary of the International Association for the Study of Insurance Economics, known as “The Geneva Association”. It reviews the evolution of insurance economics, by first recalling the situation in 1973, then presenting the developments...