Workers' Compensation Insurance In North America: Lessons for Victoria?

Among the issues we will consider here are the following. Who carries the underwriting(insurance) risk for workers' compensation benefits? How is workers' compensation insuranceprices, and by whom? What fundamental principles guide the insurance pricing system? Whomonitors benefits for compliance with statutory requirements? Are the availability of coverageand the payment of insurers' claims obligations guaranteed? Is self-insurance allowed and, if so, for whom? How are incentives for prevention of accidents, and resulting workers' compensation claims, maintained? What is the performance of the overall system? In summary, how are these questions answered and what so the answers reveal about how these responsibilities are allocated among government agencies, other public entities and private firms

The Supply of Catastrophe Insurance Under Regulatory Constraints

Klein and Kleindorfer provide a brief overview of the current extent of their research on this topic. The intent of this research is to empirically address interactions across the multiple stakeholders in the Catastrophe Insurance Business, i.e. homeowners, businesses, insurers, reinsurers, the construction and real estate sector, and regulatory institutions. Their analysis is aimed at addressing three questions: What is the structure and performance of the catastrophe insurance market? How do factors such as, interdependencies, profits, risk exposures, and distribution impact the performance of the market? What is the impact of regulation of this market on pricing adequacy, pricing precision, and financial risk? What is the current state of the market, and what future sustainable states of the market are possible? This paper is primarily devoted to describing what authors consider to be the structural drivers of supply and demand and the impact of regulatory controls. These drivers are: "Demand structure" (i.e. why consumers buy what they do) obviously contains several components. Items such as location, demography, price, policy features such as the presence of absence of bundling, "quality" effects such as perceived solvency and claims processes, and finally, how products are distributed, all impact consumer choice. In addition, consumers have other risk management options open to them, the most obvious being where to live, what type of construction to choose and what type of "mitigation", if any to employ. "Supply Structure" describes how the consumer business of insurance is conducted. Salient features would be the degree of competition, geography, profitability, solvency, exposure, loss costs, marketing costs, organizational form, financial structure, and regulatory/solvency constraints. Obviously, insurance companies attempt to maximize profits in the face of these variables "Regulatory Impact" on such things as pricing adequacy, pricing precision, and financial risk has important effects on all parties. In particular the freedom to manage ones risk exposure is critical to everyone from the individual consumer to the largest company, and regulation may produce. In an analysis to come later, the researchers will utilize detailed premium record data obtained from ISO on insurance transactions, supplemented by information on expected costs for different policies and risk characteristics. The data will, for the first time, provide and empirically grounded understanding of the supply and demand for CAT-related coverage provided in residential insurance policies. The study will seek to identify the factors that most affect supply and demand and the magnitudes of their relative effects, including the pricing of CAT coverage and alternative policy provisions.

The demand for homeowners insurance with bundled catastrophe coverages : Wharton project on managing catastrophic risks

In this paper, we estimate the demand for homeowner insurance in Florida. Since we are interested in a number of factors influencing demand, we approach the problem from two directions. We first estimate two hedonic equations representing the premium per contract and the price mark-up. We analyze how the contracts are bundled and how contract provisions, insurer characteristics and insured risk characteristics and demographics influence the premium per contract and the price mark-up. Second, we estimate the demand for homeowners insurance using two-stage least squares regression. We employ ISO's indicated loss costs as our proxy for real insurance services demanded. We assume that the demand for coverage is essentially a joint demand and thus we can estimate the demand for catastrophe coverage separately from the demand for noncatastrophe coverage. We determine that price elasticities are less elastic for catastrophic coverage than for non-catastrophic coverage. Further estimated income elasticities suggest that homeowners insurance is an inferior good. Finally, we conclude based on the results of a selection model that our sample of ISO reporting companies well represents the demand for insurance in the Florida market as a whole

The Demand for Homeowners Insurance with Bundled Catastrophe Coverage

This paper analyzes the demand for homeowners insurance in markets subject to catastrophe losses and where consumers have choices in configuring their coverage for catastrophe and non-catastrophe perils. We estimate the demand for homeowner insurance in Florida and New York using two-stage least squares regression with advisory indicated loss costs as our proxy for the quantity of real insurance services demanded. We decompose the demand for insurance into the demand for coverage of catastrophe perils (i.e., hurricanes or windstorms) and the demand for non-catastrophe coverage and estimate these demand functions separately. Our results are relatively consistent in New York and Florida, including evidence that catastrophe demand is more price elastic than non-catastrophe demand. We also find evidence that consumers value options that expand coverage, buy more insurance when it is subsidized through regulatory price constraints, and consider state guaranty fund provisions when purchasing insurance.

The Third Way: Prevention and Compensation of Work Injury in Victoria, Australia

This study originated because the leadership of the VWA and the responsible Minister wanted an assessment of the performance of the Victorian scheme within a larger perspective. They commissioned the W. E. Upjohn Institute for Employment Research, an endowed, not-forprofit research foundation in the United States, to assemble an appropriate team of workers' compensation experts to conduct such a study. The assignment was to carry out a thorough, independent review of the Victorian system of prevention and compensation for work injuries and to provide a set of informed judgments about the system and its performance

On the Transfer of Metric Fluctuations when Extra Dimensions Bounce or Stabilize

In this report, we study within the context of general relativity with one extra dimension compactified either on a circle or an orbifold, how radion fluctuations interact with metric fluctuations in the three non-compact directions. The background is non-singular and can either describe an extra dimension on its way to stabilization, or immediately before and after a series of non-singular bounces. We find that the metric fluctuations transfer undisturbed through the bounces or through the transients of the pre-stabilization epoch. Our background is obtained by considering the effects of a gas of massless string modes in the context of a consistent 'massless background' (or low energy effective theory) limit of string theory. We discuss applications to various approaches to early universe cosmology, including the ekpyrotic/cyclic universe scenario and string gas cosmology.Comment: V2. Minor Clarifications V3. appendix and 2 figures added, typos corrected, conclusions unchanged 12 pages, 6 figure

Job Creation, Job Destruction, and International Competition

The authors present a picture of how the effects of international trade on employment in U.S. manufacturing industries vary widely. They explore the labor-market dynamics and adjustment costs associated with international factors, particularly the way fluctuations in exchange rates, overseas economic activity, and the altering of trade restrictions contribute to churning-the simultaneous job creation among some firms and job destruction among others.https://research.upjohn.org/up_press/1049/thumbnail.jp

Operative versus nonoperative treatment of acute Achilles tendon ruptures: A pilot economic decision analysis

Background: The operative treatment of Achilles tendon ruptures has been associated with lower rerupture rates and better function but also a risk of surgery-related complications compared with nonoperative treatment, which may provide improved outcomes with accelerated rehabilitation protocols. However, economic decision analyses integrating the updated costs of both treatment options are limited in the literature. Purpose: To compare the cost-effectiveness of operative and nonoperative treatment of acute Achilles tendon tears. Study Design: Economic and decision analysis; Level of evidence, 2. Methods: An economic decision model was built to assess the cost-utility ratio (CUR) of open primary repair versus nonoperative treatment for acute Achilles tendon ruptures, based on direct costs from the practices of sports medicine and foot and ankle surgeons at a single tertiary academic center, with published outcome probabilities and patient utility data. Multiway sensitivity analyses were performed to reflect the range of data. Results: Nonoperative treatment was more cost-effective in the average scenario (nonoperative CUR, US$520; operative CUR, US$1995), but crossover occurred during the sensitivity analysis (nonoperative CUR range, US$224-US$2079; operative CUR range, US$789-US$8380). Operative treatment cost an extra average marginal CUR of US$1475 compared with nonoperative treatment, assuming uneventful healing in both treatment arms. The sensitivity analysis demonstrated a decreased marginal CUR of operative treatment when the outcome utility was maximized, and rerupture rates were minimized compared with nonoperative treatment. Conclusion: Nonoperative treatment was more cost-effective in average scenarios. Crossover indicated that open primary repair would be favorable for maximized outcome utility, such as that for young athletes or heavy laborers. The treatment decision for acute Achilles tendon ruptures should be individualized. These pilot results provide inferences for further longitudinal analyses incorporating future clinical evidence