NATIONAL BUREAU OF ECONOMIC RESEARCH, INC.

Insurance Project Workshop

Kenneth Froot and Howard Kunreuther, Organizers

January 31 and February 1, 2003

1050 Massachusetts Avenue

Cambridge, Massachusetts

PROGRAM

FRIDAY, JANUARY 31:

8:15 AM Shuttle Van from Royal Sonesta Hotel to NBER

8:30 AM Continental Breakfast

DEALING WITH TERRORIST RISKS

8:45 AM Introductions

9:00 AM DAVID CUMMINS, University of Pennsylvania

CHRISTOPHER LEWIS, Fitch Risk Management

Catastrophic Events, Parameter Uncertainty and the Breakdown of Implicit Long-Term Contracting in the Insurance Market:

The Case of Terrorism Insurance

Discussant: JOAN LEMM-TENANT, General Cologne Re Capital Consultants

10:00 AM Break

10:15 AM GORDON WOO, Risk Management Solutions

Insuring Against Al-Qaeda

Discussant: JOHN MAJOR, Guy Carpenter & Company, Inc.

11:15 AM THOMAS RUSSELL, Santa Clara University

The Costs and Benefits of the Terrorism Risk Insurance Act: A First Look

Discussant: PAUL FREEMAN, University of Denver

12:15 PM Lunch and Discussion on the Status of Terrorism Insurance

JEFFREY BROWN, University of Illinois at Urbana-Champaign and NBER

KENT SMETTERS, University of Pennsylvania and NBER

1:15 PM DARIUS LAKDAWALLA, RAND and NBER

GEORGE ZANJANI, Federal Reserve Bank of New York

Insurance, Self-Protection and the Economics of Terrorism

Discussant: HOWARD KUNREUTHER, University of Pennsylvanina and NBER

NON-CATASTROPHIC INSURANCE

2:15 PM ALMA COHEN, Harvard University

Asymmetric Information and Learning : Evidence from the Automobile Insurance Market

Discussant: GORDON STEWART, Insurance Information Institute

3:15 PM Break

3:30 PM BRADLEY HERRING, Emory University

MARK PAULY, University of Pennsylvania

Incentive-Compatible Guaranteed Renewable Health Insurance Premiums

Discussant: THOMAS MCGUIRE, Harvard University

4:30 PM JEFFREY BROWN, University of Illinois at Urbana-Champaign and NBER

THOMAS DAVIDOFF, UC, Berkeley

PETER DIAMOND, MIT and NBER

Annuities and Individual Welfare

Discussant: AMY FINKELSTEIN, National Bureau of Economic Research

5:30 PM Adjourn

6:30 PM Group Dinner

Sandrine's

8 Holyoke Street

Cambridge, MA

SATURDAY, FEBRUARY 1:

8:00 AM Shuttle Van from Royal Sonesta Hotel to NBER

8:15 AM Shuttle Van from Royal Sonesta Hotel to NBER

8:15 AM Continental Breakfast

DESIGNING CONTRACTS FOR CATASTROPHIC RISKS

8:30 AM OLIVIER MAHUL, INRA

Efficient Risk Sharing within a Catastrophe Insurance Pool

Discussant: ANNE GRON, Northwestern University

9:30 AM ALEX BOULATOV and DWIGHT JAFFEE, UC, Berkeley

The Response of Catastrophe Insurance Markets to Extreme Events:

A Real Option Approach

Discussant: KENT SMETTERS, University of Pennsylvania and NBER

10:30 AM Break

10:45 AM NEIL DOHERTY and PAUL KLEINDORFER, University of Pennsylvania

Ambiguity and the Insurance of Catastrophic Losses

Discussant: DAVID DURBIN, Swiss Re

11:45 AM GEOFFREY HEAL, Columbia University

HOWARD KUNREUTHER, University of Pennsylvania and NBER

Discussant: NATHANIEL KEOHANE, Yale University

12:45 PM Adjourn 1/22/03