http://Knowledge.emory.edu/ Knowledge@Emory is an online resource that offers the latest business insights, information, and research from a variety of sources. Content includes analysis of current business trends, interviews with industry leaders and faculty, articles based on the most recent business research, book reviews, conference and seminar reports, and links to other websites. en-us Copyright (c) 2007 The Wharton School of the University of Pennsylvania Wed, 10 Jun 2009 00:00:00 EST Wed, 10 Jun 2009 22:18:52 EST http://www.wharton.upenn.edu/globals/images/katw_white.gif http://Knowledge.emory.edu/category.cfm?cid=5 125 45 Knowledge@Emory Insurance and Pensions Research Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=1184 There has been much ado made about the coming retirement of the large Baby Boom generation and the potential drain on the U.S. economy. But according to recent research, many of these older Americans may not retire exactly as planned, and their decision to work well into their late sixties and beyond will have many positive, and a few negative, consequences for the job market. <strong>&nbsp;</strong> Thu, 09 Oct 2008 15:33:12 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=909 Social Security may be fading out of the news now that President George W. Bush’s proposal to change its structure has stalled in Congress, but don’t expect pension problems to vanish from the news altogether. Finance and accounting professors at Emory University’s Goizueta Business School say that the U.S. also faces two other pension funding crises, each potentially more serious than un-reformed Social Security. Emory scholars also note that while not facing a fiscal crisis, 401(k)s also have some significant shortcomings in their management that often make them riskier investment vehicles for individuals than they need to be. Wed, 05 Oct 2005 18:16:33 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=884 Before Hurricane Hugo swept through parts of the southern U.S. in 1989, the insurance industry had never suffered a loss of more than $1 billion from a single disaster. Since then, numerous catastrophes have exceeded that figure, even as development in danger zones continues to increase. It's a trend that emphasizes, as never before, the need to manage risk on both a national and a global scale. "People today are asking the question, 'How do we scientifically evaluate catastrophic risk?'" says Wharton's Howard Kunreuther, co-author -- along with Patricia Grossi -- of <I>Catastrophe Modeling: A New Approach to Managing Risk. </I>The book analyzes the role of catastrophe modeling in developing risk management strategies to help reduce losses from future disasters, ranging from floods and hurricanes to environmental damage and terrorism. Wed, 29 Jun 2005 15:18:37 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=694 Gary Sutton, a 20-year turnaround specialist, declares that he can rescue a failing company in less than a year. Straightforward and honest, Sutton provides a how-to manual on getting ailing companies back on the road to profits and longevity in his book, <I>The Six Month Fix.</I> Wed, 02 Jul 2003 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=683 After three years of a down stock market and a rocky economy, retirement has become a distant goal for many people. The trend away from traditional pension plans has added even more uncertainty for older workers. Faculty at Emory University’s Goizueta Business School and industry experts discuss the impact of the changing retirement rules on a generation of workers. Wed, 04 Jun 2003 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=648 In 1985, the Financial Accounting Standards Board (FASB) looked at defined-benefit pension accounting issues and noted: “Measuring cost and reporting liabilities resulting from defined benefit pension plans have been sources of accounting controversy for many years.” Now, nearly two decades later, they’re still controversial as companies like General Motors Corp., IBM and others rack up billions of dollars in under-funded defined benefit pension plan liabilities. Some Wharton faculty and other experts are asking whether FASB rules as well as the Internal Revenue Code itself may have played a significant part in the strife. Wed, 12 Mar 2003 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=615 When Enron collapsed a year ago, thousands of employees’ retirement savings were wiped out, sparking quick calls for reform of 401(k) plans. Some changes were put in place earlier this year, others are still being debated in Congress. But now that the smoke of corporate scandals has begun to clear, do problems with 401(k)s still appear as bad as they did last winter? Should the system be left alone, merely tweaked, or overhauled? Wed, 04 Dec 2002 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=539 The rapid aging of the world’s industrialized nations poses problems for consumer and capital markets, including the risk that individual and government retirement plans will come up short over the next two decades. But the retirement boom will also have implications for the developing world. The global aging problem and the prospect for globally-based solutions were outlined several weeks ago during a conference sponsored by Wharton’s Pension Research Council and The Financial Institutions Center. Wed, 17 Jul 2002 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=481 With the collapse of Enron, lawmakers, regulators, financial advisors and working people are taking a hard look at 401(k) plans, which employees in many U.S. companies use to save for retirement. In a recent study entitled “Defined Contribution Pensions: Plan Rules, Participant Choices, and the Path of Least Resistance,” Wharton finance professor Andrew Metrick and three co-authors analyze the impact of a plan’s design on the level of employee participation, the percentage of income employees contribute and the investment choices they make. Wed, 27 Mar 2002 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=412 One of the most vexing business issues to emerge from the rubble of the World Trade Center’s tragic destruction is how the insurance industry will continue to write policies that cover terrorism. On October 15 the Bush administration announced a series of proposals to bail out the industry. Will this plan address the insurance industry’s problems? Professors at Emory University and its Goizueta Business School welcome the plan, but they caution that a hastily concocted remedy could have powerful side effects of its own. Tue, 23 Oct 2001 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=372 No matter how strong an investment portfolio you’ve put together, chances are you haven’t considered the impact the sudden death of your spouse could have on your finances. For Baby Boomers who are already shouldering the costs of mortgage payments, child care or tuition – and possibly the care of an aging parent, such a sudden tragedy can wreak emotional as well as financial havoc. Employer-based insurance may provide some relief, but the pivotal question to ask is: Could you live without your spouse’s income? Emory and Goizueta Business School faculty discuss key strategies to consider when confronting this issue. Wed, 01 Aug 2001 00:00:00 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=320 Following yet another highly public hacker attack – this one targeting the credit card numbers of participants at the World Economic Forum in Davos, Switzerland - insurance industry reps are pointing even more vigorously to the havoc that hackers can wreak on businesses. Cyber insurance, they say, can ease the pain. Mon, 19 Mar 2001 14:04:15 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=308 Investors often regard annuities as a poor substitute for mutual funds and other investments. A new study by Wharton’s Pension Research Council shows, however, that middle-income investors approaching retirement age may be missing a good bet if they overlook annuities. “Mutual funds don’t protect you against the risk of outliving your assets,” says Olivia S. Mitchell, the council’s executive director. Thu, 22 Feb 2001 15:56:32 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=276 As corporate America buys and sells more goods and services abroad, the number of company employees kidnapped for ransom in places like Mexico, Brazil, the Philippines and Chechnya has increased. Along with that increase have come escalating demands for ransom money, more expensive insurance policies and more sophisticated negotiation tactics on both sides of the table. Knowledge@Wharton looks at recent developments in the kidnap and ransom business. Wed, 22 Nov 2000 14:31:38 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=199 Only half of Americans say they’ve thought about saving for retirement, and many of those who have tried to save don’t know if they are saving enough. Olivia S. Mitchell, executive director of Wharton’s Pension Research Council, and finance Professor Zvi Bodie of Boston University outline this problem and propose some fresh approaches to it in the introductory chapter of a forthcoming book titled Financial Innovations for Retirement Income. Among their suggestions: cash-balance pension plans, reverse annuity mortgages and inflation-indexed bonds. They also advocate more knowledgeable financial advisors and well-educated retirees. Wed, 05 Jul 2000 14:31:55 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=121 A number of states have adopted no-fault coverage in various forms as a way to cut auto insurance costs. Yet research studies over the past decade suggest that no-fault insurance may increase fatal auto accidents. These studies, however, were considered inconclusive, in that they did not fully account for possible factors outside of no-fault that may have contributed to fatal accident rates. A recent study by Wharton professor J. David Cummins and two colleagues addresses these concerns and offers its own assessment of the no-fault approach. Thu, 20 Jan 2000 16:54:35 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=111 Natural disasters, ranging from the recent earthquakes in Turkey and Taiwan to Hurricane Andrew in Florida in 1992, tend to focus the public’s attention on the importance of well-enforced building codes as a way to reduce property damage and loss of life. According to Wharton professor Howard Kunreuther, approximately 25% of the $15 billion worth of insured damage in Florida alone could have been averted had structures met existing building codes. He argues that a mix of economic incentives, along with support from insurers and mortgage lenders, can result in stricter building codes and safer homes. Fri, 10 Dec 1999 09:13:08 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=93 Did IBM make a blunder when it decided some weeks ago to switch employees from a traditional defined benefit pension plan to the newer and more controversial cash balance? Older employees seemed to think so and they lost no time mounting a very public protest and accusing their employer of age discrimination. In the wake of IBM’s decision to revise its plan, Olivia Mitchell, director of Wharton’s Pension Research Council, looks at the pros and cons of cash-balance plans and how they fit into companies’ long-range strategy. Wed, 27 Oct 1999 14:38:14 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=70 The latest wave of mergers and acquisitions among financial institutions and insurance companies has led to the rise of “universal banks”—firms of enormous size and product scope. Although this trend promises to continue, is it wise for companies to integrate different lines of business? Or is it better to remain specialized in an established area of expertise? A study by J. David Cummins, executive director of the S.S. Huebner Foundation for Insurance Education, and three colleagues for the Wharton Financial Institutions Center provides some answers to the conglomeration vs. specialization debate. Fri, 17 Sep 1999 10:04:55 EST Insurance and Pensions http://Knowledge.emory.edu/article.cfm?articleid=51 At first glance, the life insurance industry appears to be in trouble as it faces the millennium. As the large baby boomer market ages, these consumers have shifted their financial focus away from life insurance and towards assuring their future comfort. Although the industry has long recognized that its future lies in more in financial products than in life insurance, it has lately been losing its share of the retirement market. But is the news all bad for life insurance firms in the retirement market? Two experts--Paul Hoffman and Anthony Santomero--answer that question with a decided "no." Thu, 19 Aug 1999 09:27:14 EST