Jump to ContentJump to Main Navigation
Acts of God and ManRuminations on Risk and Insurance$
Users without a subscription are not able to see the full content.

Michael Powers

Print publication date: 2014

Print ISBN-13: 9780231153676

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231153676.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 13 June 2021

Aloofness and Quasi-Aloofness

Aloofness and Quasi-Aloofness

Defining Insurance Risks

(p.93) 6 Aloofness and Quasi-Aloofness
Acts of God and Man

Michael R. Powers

Columbia University Press

This chapter begins with a brief history of insurance followed by an overview of the types of products sold by insurance companies (property-liability insurance, life-and-health insurance, and accident-and-health insurance). It then distinguishes between the “aloof” and “quasi-aloof” risks of insurance and the “non-aloof” risks of other financial services markets. To this end, it considers a theoretically exhaustive set of financial random processes and defines aloof and quasi-aloof random processes as special subsets of this original set that can influence all financial random processes as they propagate through time, but are themselves relatively immune to the effects of non-aloof random processes. Risks are then defined as the random fluctuations in the various underlying processes at a given point in time. After showing in some detail that conventional insurance products are generally based upon aloof and quasi-aloof risks, the chapter explores the usefulness of the aloof risk/non-aloof risk dichotomy in the context of relevant applications.

Keywords:   insurance market, insurance companies, insurance policies, aloof risks, quasi-aloof risks

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .