How Crime Shapes Insurance and Insurance Shapes Crime
Examines the relationship between #crime and #insurance, with a focus on the role of #governance, #riskassessment and #riskmanagement, #crimeprevention, #securitytechnology, #behavioraleconomics, #theft, #kidnap and #hijack for ransom, #fraud, and #ransomware. It analyzes five case studies to identify a co-evolutionary process in which #insurers collaborate with insureds, governments, and #thirdparty to #mitigaterisk, particularly when criminal innovations destabilize the #insurancemarket. Lire
Artificial Intelligence Act: A Policy Prototyping Experiment: Operationalizing the Requirements for AI Systems – Part I
This report presents the findings and recommendations of the Open Loop’s policy prototyping program on the #eu #artificialintelligence Act (#aia ), which involved 53 AI companies participating in an online platform to provide feedback on selected articles of the AIA. While the majority of the participants found the provisions to be clear and feasible, there were areas for improvement […]
Quantifying Uncertainty and Sensitivity in Climate Risk Assessments: Varying Hazard, Exposure and Vulnerability Modelling Choices
“We present a novel approach to quantify the uncertainty and sensitivity of risk estimates, using the CLIMADA open-source climate risk assessment platform. This work builds upon a recently developed extension of CLIMADA, which uses statistical modelling techniques to better quantify climate model ensemble uncertainty. Here, we further analyse the propagation of hazard, exposure and vulnerability […]
Analysis of New Models of Emerging Risk for Insurance Companies: The Climate Risk
“We aim to analyze strategies for assessing and managing new risks that affect the insurance industry, considering the regulatory requirements that the company must follow. To this end, the open-source software Climada was examined. This software uses stochastic forecasting models such as ARCH, GARCH, and ARIMA. Through real data obtained during an internship at E&Y, […]
The Probability Conflation: A Reply
We respond to Tetlock et al. (2022) showing 1) how expert judgment fails to reflect tail risk, 2) the lack of compatibility between forecasting tournaments and tail risk assessment methods (such as extreme value theory). More importantly, we communicate a new result showing a greater gap between the properties of tail expectation and those of […]
Prediction of Auto Insurance Risk Based on t-SNE Dimensionality Reduction
“… we develop a framework based on a combination of a neural network together with a dimensionality reduction technique t-SNE (t-distributed stochastic neighbour embedding)… The obtained results, which are based on real insurance data, reveal a clear contrast between the high and low risk policy holders, and indeed improve upon the actual risk estimation performed […]
The Government Behind Insurance Governance: Lessons for Ransomware
“This paper analyzes how governments support insurance markets to maintain insurability and limit risks to society. We propose a new conceptual framework grouping government interventions into three dimensions: regulation of risky activity, public investment in risk reduction, and co-insurance.” Lire
French Implementation of the EU CSR Directive: Sustainable Corporate Governance Has Begun
“This implementation in France provides a new framework for non-financial information and marks a major turning point towards greater potential responsibilities for members of the management bodies of the large corporations in question, in particular with the description of diversity policy: non-financial reporting is reviewed via an overall analysis guided by the materiality principle and […]
The Government Behind Insurance Governance: Lessons for Ransomware
“We propose a new conceptual framework grouping government interventions into three dimensions: regulation of risky activity, public investment in risk reduction, and co-insurance. “ Lire
Insurance and Enterprise: Cyber Insurance for Ransomware
“As businesses improved their resilience, cybercriminals adapted and ransoms escalated, calling insurability into question. Yet there remains little appetite for imposing restrictive conditionality in this highly competitive market. Instead, insurers have turned to governments to contain criminal threats and cushion catastrophic losses.” Lire
Fraud Brainstorming Group Composition in Auditing: The Persuasive Power of a Skeptical Minority
“Our study contributes to the brainstorming literature by highlighting the importance of group composition. It suggests that firms can promote skeptical team judgments by leveraging individuals’ high trait skepticism in thoughtfully composed interacting groups.” Lire
A Mathematical Model for Risk Assessment of Social Engineering Attacks
“Social engineering is a very common type of malicious activity conducted on cyberspace that targets both individuals and companies in order to gain access to information or systems. It is part of the broader domain of cybersecurity and the first step to mitigate this type of attack is to know its attack vectors. This way, […]
Cyber Risk Assessment for Capital Management
“There appears a gap in cyber risk modeling between engineering and insurance literature. This paper presents a novel model to capture these unique dynamics of cyber risk known from engineering and to model loss distributions based on industry loss data and a particular company’s cybersecurity profile. The analysis leads to a new tool for allocating […]
Pandemic Risk Assessment and Management in a Bayesian Framework
“This work presents a Bayesian-based semi-mechanistic model for a short-term forecast of pandemic risk.” Lire
Re-Imagining Risk: The Role of Resilience and Prevention
“I argue that that conventional risk analysis—meaning risk analysis fixated on controlling risks—should expand to systematically integrate two related principles. The first is prevention, which seeks in the first instance to avoid the risk altogether. The second is resilience, which aims build the capacity to respond to whatever does come to pass.” Lire
Simplified Solution for Optimizing Management of System Maintenance Through Bayesian Inference and Fault Tree Analysis
“… this paper introduces a generic simplified solution for plantwide auxiliary diagnosis through Bayesian inference and quantification results from a probabilistic risk assessment (PRA) report, which is cost-efficient to implement and helpful in decision making.” Lire
EIOPA sees environmental risks as top concern for re/insurers
“Bearing in mind that unprecedented fiscal measures amid accommodative monetary policies may have distorted regular risk assessment frameworks, it is important for risk managers and supervisors not to underestimate risks.” Lire