The American Risk and Insurance Association presents the Robert C. Witt Award each year for the article published the previous calendar year in The Journal of Risk and Insurance judged to be the best by an independent committee of experts.
2019 WITT AWARD:
The recipient of the 2019 Witt Award is Greg Niehaus for “Managing Capital by Internal Capital Market Transactions: The Case of Life Insurers,” March 2018, Volume 85, Issue 1, pages 69-106.
The movement of capital within insurance groups is important for understanding insolvency risk management, as well as regulatory policies regarding capital standards and group supervision. Panel data estimates indicate that, on average, a dollar decrease in performance (net income plus unrealized capital gains) when performance is negative is associated with a $0.26 increase in capital contributions to life insurers from other entities in the group, and that a dollar increase in performance when performance is positive is associated with a $0.56 increase in the amount of internal shareholder dividends paid by life insurers to other entities in the group. Moreover, the sensitivity of internal dividends to performance is higher during the financial crisis than the noncrisis period. Also, insurers with low (high) risk‐based capital ratios receive more (less) internal capital contributions than other insurers, holding other factors constant.
Archive of Witt Award Winners
2019: Greg Niehaus for Managing Capital by Internal Capital Market Transactions: The Case of Life Insurers.
Carole Bernard, Ludger Rüschendorf, and Steven Vanduffel for Value-at-Risk Bounds with Variance Constraints.
Jeffrey R. Brown, Arie Kapteyn, and Olivia S. Mitchell for Framing and Claiming: How Information-Framing Affects Expected Social Security Claiming Behavior.
Casey Rothschild for Non-Exclusivity, Linear Pricing, and Annuity Market Screening.
J. David Cummins and Mary A. Weiss for Systemic Risk and the U.S. Insurance Sector.
Alex Boulatov and Stephan Dieckmann for The Risk-Sharing Implications of Disaster Insurance Funds.
Antonie Bommier and Bertrand Villeneuve for Risk Aversion and the Value of Risk to Life.
Casey Rothschild for The Efficiency of Categorical Discrimination in Insurance Markets.
Alma Cohen and Peter Siegelman for Testing for Adverse Selection in Insurance Markets.
Arthur Snow for On the Possibility of Profitable Self-Selection Contracts in Competitive Insurance Markets.
Pierre Picard for Natural Disaster Insurance and the Equity-Efficiency Trade-Off.
Kenneth Froot for Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers.
Ignacio Moreno, Francisco Vazquez, and Richard Watt for Can Bonus-Malus Alleviate Insurance Fraud?
Neil Doherty and Kent Smetters for Moral Hazard in Reinsurance Markets.
Patrick L. Brockett, Ray E. Chang, John J. Rousseau, John H. Semple, and Chuanhou Yang for A Comparison of HMO Efficiencies as a Function of Provider Autonomy.
Louis Eeckhoudt, Olivier Mahul, and John Moran for Fixed Reimbursement Insurance: Basic Properties & Comparative Statics.
Steven Boyce and Richard Ippolito for The Cost of Pension Insurance.
Christian Gollier and Louis Eeckhoudt for Which Shape for the Cost Curve of Risk?
There was a tie for the Witt award in 2001: Stewart Myers and James Read, Jr. for Capital Allocation for Insurance Companies, and Kent Smetters for The Equivalence Between State Contingent Tax Policy and Options and Forwards: An Application to Investing the Social Security Trust Fund in Equities.
Krupa Subramanian, Jean Lemaire, John C. Hershey, Mark V. Pauly, Katrina Armstrong, and David A. Asch for Estimating Adverse Selection Costs from Genetic Testing for Breast and Ovarian Cancer: The Case of Life Insurance.