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2004
Pricing Limit
August 15, 2004

By: Morton Lane, Ph.D.

Aviation insurers are often asked to provide limits of liability to insureds (a) that are  large and (b) whose exposures are difficult to assess.  This is particularly true of providers of coverage for product manufacturers and other products liability.  The question arises, for several insureds with little or no loss experience, how should such coverage be priced? In particular, is there some minimum price of limit?

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Review of Trends in Insurance Securitization
April 30, 2004

Presented at the 2004 Enterprise Risk Management Symposium sponsored by the Casualty Actuarial Society, the Society of Actuaries and Georgia State University.

By:  Morton Lane, President and Roger Beckwith, Vice President
Lane Financial LLC

The last twelve months have been something of a breakout year for insurance securitization. By our estimate $1.9 billion of securities were issued between 4/2003 and 3/2003 (our usual measuring interval). This represents a 50% increase over the previously most active year to date (1999). Sixteen securities, as defined herein, constitute the record issuance. But, as always, such measurements are subject to specification definition. During this period at least three other securities were issued that have not been included in this report, principally because of a lack of readily available data. Had they been included the issuance level would have been an additional $900 million.

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The Viability and Likely Pricing of "Cat Bonds" for Developing Countries
February 14, 2004 (Revised March 31, 2004)

Excerpt from Catastrophe Risk and Reinsurance: A Country Risk Management Perspective, Eugene N. Gurenko (ed.) 2004 (London: Risk Books)

By Morton N. Lane, Ph.D.

An inordinately large number of natural catastrophes occur in the developing world.  That is, they occur in those areas least likely to be able to handle the disasterís human and economic consequences and quickly return to functioning societies.  In the developed world, when disasters hit, governments respond with aid but a large measure of restitution is provided by private insurance markets.  In the developing world, the usual sources of help are international reconstruction agencies like the World Bank and IMF, donor governments and charities.  The insurance markets provide very little help.

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