This page has only limited features, please log in for full access.
Using real-time customer data holds great potential for the insurance industry. The frequency and relevance of interactions can be improved to provide assistance in real time. Better prevention and risk management can significantly improve pricing and reduce losses. These changes, however, hold the potential for structural changes in the industry. This research aims at understanding the potential path of the development of services in insurance and the challenges faced by insurers. A panel of industry experts provided the industry’s view, which was then compared with the responses of 1542 Swiss retail customers. We find that customers have high trust in insurance companies and are open to purchasing additional services, particularly for prevention and assistance. Insurance companies, however, are currently focusing on cost improvement measures. Customers are open to sourcing services from other providers, suggesting that insurance companies need to evolve their approach to take advantage of the current market window.
Carlo Pugnetti; Mischa Seitz. Data-Driven Services in Insurance: Potential Evolution and Impact in the Swiss Market. Journal of Risk and Financial Management 2021, 14, 227 .
AMA StyleCarlo Pugnetti, Mischa Seitz. Data-Driven Services in Insurance: Potential Evolution and Impact in the Swiss Market. Journal of Risk and Financial Management. 2021; 14 (5):227.
Chicago/Turabian StyleCarlo Pugnetti; Mischa Seitz. 2021. "Data-Driven Services in Insurance: Potential Evolution and Impact in the Swiss Market." Journal of Risk and Financial Management 14, no. 5: 227.
COVID-19 has significantly affected the financial and commodity markets. The purpose of this investigation is to understand the impact of the COVID-19 crisis on Dow Jones and West Texas Intermediate (WTI) oil returns in relation to other crises using the Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) model. The results indicate that COVID-19 and the accompanying lockdown have adversely impacted both yields and that the impact on oil prices is more significant than on the Dow Jones index. The variance and squared residuals of oil prices and the Dow Jones reached their highest historical levels during the COVID-19 outbreak, even higher than during the global financial crisis, and especially the VaR of both markets reached their historical peak points during the COVID-19 era. The variance of WTI during COVID-19 is higher than that of DJI, as was also the case during the financial crisis. These findings confirm that COVID-19 has negatively impacted investors’ ability to determine optimal portfolios and thus the sustainability of financial and energy markets more than the global financial crisis of 2007–2009. We, therefore, suggest that policy changes are needed to maintain financial sustainability and help investors deal with future financial and other crises.
Khurram Shehzad; Umer Zaman; Xiaoxing Liu; Jarosław Górecki; Carlo Pugnetti. Examining the Asymmetric Impact of COVID-19 Pandemic and Global Financial Crisis on Dow Jones and Oil Price Shock. Sustainability 2021, 13, 4688 .
AMA StyleKhurram Shehzad, Umer Zaman, Xiaoxing Liu, Jarosław Górecki, Carlo Pugnetti. Examining the Asymmetric Impact of COVID-19 Pandemic and Global Financial Crisis on Dow Jones and Oil Price Shock. Sustainability. 2021; 13 (9):4688.
Chicago/Turabian StyleKhurram Shehzad; Umer Zaman; Xiaoxing Liu; Jarosław Górecki; Carlo Pugnetti. 2021. "Examining the Asymmetric Impact of COVID-19 Pandemic and Global Financial Crisis on Dow Jones and Oil Price Shock." Sustainability 13, no. 9: 4688.
This study investigates the role of Information and Communication Technologies (ICT) investment and diffusion on Pakistan’s economic growth by proposing the threshold level of ICT investment. At our proposed level, the ICT imports significantly enhance the intermediate inputs to capital goods, ultimately enhancing economic growth. For this empirical investigation, we use the maximum available data on technological innovation and investment, ranging from 2003 to 2018. Incorporating the structural breaks, the results of regression analysis reveal that Pakistan’s economic growth is unaffected by ICT development. However, we observe the mixed shreds of evidence on the ICT investment. Following existing literature, we use ICT goods exports and imports as a proxy for ICT investment. Interestingly, the economic growth of Pakistan is again unaffected by the ICT goods exports. However, we observe that a one percent increase in ICT goods imports enhances economic growth by 1.73 percent. Then, we extend this analysis to the threshold approach, which reveals that ICT imports affect the overall economic growth when the ICT goods imports reach the level of 4.13 percent of the total imports. At this threshold, the ICT goods import significantly enhances the intermediate input to the capital goods, leading to higher economic growth. Therefore, the policymakers should ensure that the ICT goods import must be greater than the 4.13 percent of Pakistani imports.
Habib Rahman; Ghulam Ali; Umer Zaman; Carlo Pugnetti. Role of ICT Investment and Diffusion in the Economic Growth: A Threshold Approach for the Empirical Evidence from Pakistan. International Journal of Financial Studies 2021, 9, 14 .
AMA StyleHabib Rahman, Ghulam Ali, Umer Zaman, Carlo Pugnetti. Role of ICT Investment and Diffusion in the Economic Growth: A Threshold Approach for the Empirical Evidence from Pakistan. International Journal of Financial Studies. 2021; 9 (1):14.
Chicago/Turabian StyleHabib Rahman; Ghulam Ali; Umer Zaman; Carlo Pugnetti. 2021. "Role of ICT Investment and Diffusion in the Economic Growth: A Threshold Approach for the Empirical Evidence from Pakistan." International Journal of Financial Studies 9, no. 1: 14.
Leading across national borders is a challenge, partly due to the cultural differences among employees in different locations. We investigate this dynamic for employees of a Swiss financial services company located in Switzerland and in Poland by surveying employees about their leadership expectations and experiences, as well as about their cultural values. We find that the leadership expectations of employees in these two locations do not differ significantly. However, their experience does, indicating the opportunity for further development of local Polish management practices and leadership behavior, and underlying the importance of local leadership development. In addition, we find that a few cultural dimensions have a significant impact on leadership expectations in both countries, indicating the opportunity to further refine situational leadership behavior throughout the organization independently of location. While organizations spanning across Western and Central European locations need to deal with significant differences in cultural and leadership expectation, our results suggest that they can effectively align leadership practices and thus mitigate the practical challenges arising from these differences.
Marc Steinmann; Carlo Pugnetti. Leading in Switzerland and Poland: A Case Study of Leadership Practices in Financial Services. International Journal of Financial Studies 2021, 9, 6 .
AMA StyleMarc Steinmann, Carlo Pugnetti. Leading in Switzerland and Poland: A Case Study of Leadership Practices in Financial Services. International Journal of Financial Studies. 2021; 9 (1):6.
Chicago/Turabian StyleMarc Steinmann; Carlo Pugnetti. 2021. "Leading in Switzerland and Poland: A Case Study of Leadership Practices in Financial Services." International Journal of Financial Studies 9, no. 1: 6.
The availability of better behavioral information about their customer portfolios holds the promise for different and more accurate pricing models for insurers. Changes in pricing, however, are always fraught with danger for insurers, as they enter long-term commitments with incomplete historical information. On the other hand, sharing personal information is still viewed with skepticism by consumers. Which type of personal information are consumers willing to share with insurers, and for what purpose? How would they like to be rewarded for this openness? For insurers, how will the transition shift their risk portfolios? This paper addresses these questions for auto insurance, particularly how the self-assessment of one’s driving style impacts this dynamic. In a survey of approximately 900 Swiss residents, we found that offering a compensation, especially premium discounts, but also services, significantly improves willingness to share information. Higher trust in insurance increases sharing. Women and younger people are more willing to share information. On the other hand, customers are less willing to disclose, to insurers, information not traditionally associated with insurance. The self-assessment of driving style also plays a significant role. More risk-averse driving styles are correlated with higher sharing. Conversely, riskier driving styles are correlated with lower sharing. This result is significant for insurers, as new data-driven pricing and services models should tend to attract less risky customer portfolios.
Carlo Pugnetti; Sandra Elmer. Self-Assessment of Driving Style and the Willingness to Share Personal Information. Journal of Risk and Financial Management 2020, 13, 53 .
AMA StyleCarlo Pugnetti, Sandra Elmer. Self-Assessment of Driving Style and the Willingness to Share Personal Information. Journal of Risk and Financial Management. 2020; 13 (3):53.
Chicago/Turabian StyleCarlo Pugnetti; Sandra Elmer. 2020. "Self-Assessment of Driving Style and the Willingness to Share Personal Information." Journal of Risk and Financial Management 13, no. 3: 53.
The development of self-driving vehicles is proceeding rapidly and with significant investment of resources. However, a full-scale deployment is not imminent. Among the challenges self-driving vehicles are facing, they will have to navigate complex ethical challenges. The algorithms governing their behavior will have to decide how to steer them in situations where accidents cannot be avoided. In some of these situations they will have to decide which of several potential parties to injure in the process. We investigate the preferences of Swiss customers for this decision by forcing a selection between simplified scenarios where a given number of car passengers or a given number of pedestrians will be killed in the accident. Both passengers and pedestrians can be adults or children. The passengers are explicitly identified as the respondent themselves and their family. While children are implicitly valued higher than adults, Swiss customers value passengers and pedestrians implicitly roughly equally, and assign increasingly higher marginal values to additional people, both passengers and pedestrians. These results seem to partially contradict similar studies conducted in other countries and recent statements by automotive companies, potentially indicating the need to adapt both corporate communications and steering algorithms in different geographies.
Carlo Pugnetti; Remo Schläpfer. Customer Preferences and Implicit Tradeoffs in Accident Scenarios for Self-Driving Vehicle Algorithms. Journal of Risk and Financial Management 2018, 11, 28 .
AMA StyleCarlo Pugnetti, Remo Schläpfer. Customer Preferences and Implicit Tradeoffs in Accident Scenarios for Self-Driving Vehicle Algorithms. Journal of Risk and Financial Management. 2018; 11 (2):28.
Chicago/Turabian StyleCarlo Pugnetti; Remo Schläpfer. 2018. "Customer Preferences and Implicit Tradeoffs in Accident Scenarios for Self-Driving Vehicle Algorithms." Journal of Risk and Financial Management 11, no. 2: 28.