Insurance: From Underwriting to Derivatives: Asset Liability Management in Insurance Companies (Wiley Finance) [Hardcover]

Eric Briys (Author), François de Varenne (Author)

Book Description

ISBN-10: 0471492272 | ISBN-13: 978-0471492276 | Publication Date: July 12, 2001 | Edition: 1

An in-depth look at the increasingly significant convergence between the insurance industry and the capital markets.
This important publication, by two premier financial experts, explores the unique convergence of finance and insurance. The book covers the basics of property-casualty insurance, securitizing insurance risks, looks at life insurance in the United States and ALM in insurance. It addresses the questions and concerns of investment banks, brokerage firms and the insurance/reinsurance sector itself, examines ongoing trends and issues, and how current market pressures on insurance companies do not just create challenges but actually point the way to future promising developments.

Editorial Reviews

From the Inside Flap

Over recent years, there has been great upheaval in the insurance industry. High profile cases such as Lloyds of London and various natural disasters have left the insurance industry struggling. Despite this, however, the market pressures on insurance companies are providing an incentive to change. As the insurance companies act on this, new opportunities are created.

This book offers an in-depth look at the increasingly significant convergence between the insurance industry and the capital markets which has resulted in insurance being seen as an up and coming asset class. Demonstrating how the industry can learn from past mistakes, the authors examine the implications of the intertwining of finance and insurance, both for investment banks and brokerage firms as well as the insurance sector itself.

Written by experts in the field, the book is divided into seven chapters:
* The basics of property-casualty insurance
* Securitizing insurance risks
* Life insurance in the United States: history of a crisis
* ALM in insurance: an empirical wander around Europe
* Life insurance pricing and the measurement of the duration of liabilities
* A functional approach to the insurance industry
* Conclusion and future challenges

From the Back Cover

Over recent years the insurance industry has faced a period of rapid change and consolidation, with recent natural and man-made disasters highlighting the problems that the industry faces. Yet this has also been a time of opportunity with the traditional role of insurance giving way to its classification as a asset class. This has resulted in insurance risks now being priced and exchanged on the markets.

In this book, the authors analyze the convergence between the insurance industry and the capital markets. They sumarize the main trends and issues and analyze past events within the industry. Thus, they demonstrate that the current market pressures on insurance companies do not not just create challenges but also new opportunities.

See all Editorial Reviews

Product Details

• Hardcover: 176 pages
• Publisher: Wiley; 1 edition (July 12, 2001)
• Language: English
• ISBN-10: 0471492272
• ISBN-13: 978-0471492276
• Product Dimensions: 9.5 x 6.4 x 0.7 inches
• Shipping Weight: 15.5 ounces (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (4 customer reviews)
• Amazon Best Sellers Rank: #978,731 in Books (See Top 100 in Books)
  • #16 in Books > Business & Investing > Industries & Professions > Insurance > Liability
  • #16 in Books > Business & Investing > Industries & Professions > Insurance > Casualty
  • #56 in Books > Business & Investing > Industries & Professions > Insurance > Life

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Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

4.0 out of 5 stars Insightful!, May 5, 2004

By 

Rolf Dobelli "getAbstract" (Switzerland) - See all my reviews
(HALL OF FAME REVIEWER)    (TOP 500 REVIEWER)    (REAL NAME)   

This review is from: Insurance: From Underwriting to Derivatives: Asset Liability Management in Insurance Companies (Wiley Finance) (Hardcover)

In Insurance from Underwriting to Derivaties, Eric Briys and Francois de Varenne, both Deutsche Bank insurance experts, have written a highly technical, albeit readable, book for their professional peers. They discuss property-casualty insurance, risk, securitizing, pricing and liabilities duration in the United States and Europe. However, it will dawn on the casual reader fairly early that there should be an "experts only" label on the book jacket. Even the basic introduction to property-casualty insurance begins with the presentation of complex mathematical models. More daunting models, charts and graphs elucidate information throughout. Insiders will appreciate this data and the extensive footnotes and references. While this may not be a book for the mid-management reader, we assure you, without risk, that its target audience - financial executives and professionals in the insurance industry - will be very glad to have it.

6 of 6 people found the following review helpful:

5.0 out of 5 stars Highly Recommended!, November 11, 2002

By 

Rolf Dobelli "getAbstract" (Switzerland) - See all my reviews
(HALL OF FAME REVIEWER)    (TOP 500 REVIEWER)    (REAL NAME)   

This review is from: Insurance: From Underwriting to Derivatives: Asset Liability Management in Insurance Companies (Wiley Finance) (Hardcover)

In Insurance from Underwriting to Derivaties, Eric Briys and Francois de Varenne, both Deutsche Bank insurance experts, have written a highly technical, albeit readable, book for their professional peers. They discuss property-casualty insurance, risk, securitizing, pricing and liabilities duration in the United States and Europe. However, it will dawn on the casual reader fairly early that there should be an "experts only" label on the book jacket. Even the basic introduction to property-casualty insurance begins with the presentation of complex mathematical models. More daunting models, charts and graphs elucidate information throughout. Insiders will appreciate this data and the extensive footnotes and references. While this may not be a book for the mid-management reader, we from getAbstract assure you, without risk, that its target audience - financial executives and professionals in the insurance industry - will be very glad to have it.

14 of 18 people found the following review helpful:

4.0 out of 5 stars Insurance ALM and Derivatives, January 8, 2002

By 

Franco Arda (Palo Alto, CA) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: Insurance: From Underwriting to Derivatives: Asset Liability Management in Insurance Companies (Wiley Finance) (Hardcover)

As a non insurance specialist, I was curious what the authors have to write about the convergence between the insurance industry and the capital markets. In particular the aspect of derivatives, since I'm in Equity Derivatives. The authors cover nicely the rapid change the insurance industry has faced the last couple of years. Show risk, opportunity, and support many arguments with mathematical models. Even though the authors have an outstanding academic record, the book is aktually fun reading (no boring academic book). References to other articles are extensive and the ALM Survival Toolkit in the Appendix is very well done. Here are the chapters:

1 The Basics of Property-Casualty Insurance
2 Securitizing Insurance Risks
3 Life Insurance in the United States: History of a crisis
4 ALM in Insurance: An Empirical Wander Around Europe
5 Life Insurance Pricing and the Measurement of the Duration and Liabilities
6 A Functional Approach to the Insurance Industry
7 Conclusion and Future Challenges
Appendix: The ALM Survival Toolkit

Mr Briys & Mr de Varenne have confirmend that the French are world-class in derivatives. Bravo!