Financial markets are susceptible to shocks caused by contagion. The mathematical models commonly used for financial risk management, such as the new EU regulations for insurers, provide insufficient protection for this type of contagion. The risk of contagion is also not given the prominence it deserves in traditional economic theories.
The development of mathematical models and economic theories for measuring financial risks – including the risk of contagion – form the focal point of Roger Laeven’s inaugural lecture. He also explores current policy issues such as prudential monitoring of shocks in insurance obligations, a design for a modern pension insurance that protects policy holders from financial shocks, and a contract that offers excellent opportunities to insurers.
Directly preceding Prof. Laeven’s inaugural lecture, the UvA’s Centre for Insurance Studies (ACIS), in collaboration with the Dutch Association of Insurers, has organised a symposium at the The Royal Netherlands Academy of Arts and Sciences.