Tuesday, March 31, 2009

New Risk Measures For Post Global Financial Crisis 2008 Era

by Prof. Rajendra Shah

The Real Reasons for the Global Financial Crisis 2008

A common explanation that has been put forth about the real cause of the ongoing Global Financial Crisis that started in 2008 is the subprime mortgage lending. When significant number of those borrowers failed to meet their commitments, the lenders tried a recovery through selling of these mortgaged properties leading to a slump in the property market and subsequently assuring future recoveries to log losses and so on. The problem would have had a limited impact but for bold and beautiful tool of securitization (1). Use of securitization had multiplied the money available to lend many-fold and that was the reason why liberal subprime lending had become possible. The extensive use of securitization allowed the lenders to make hay because of untested optimism and lack of appropriate disclosure requirements.

Tuesday, March 17, 2009

Why was IndianActuary.com started?

Welcome to IndianActuary.com, India's first blog dedicated to the insurance industry and actuarial education.

In 2008 Prof. G. S. Diwan (born 1901) was inducted in the insurance hall of fame by International Insurance Society Inc, USA for his selfless service in the field of actuarial education in India. Prof. Diwan was an Actuary and taught Actuarial Science in Sydnham Colledge in Mumbai. He passed away in 1987. International Insurance Society has produced a brief video on the life of Prof. Diwan. This video can be viewed on the society's Hall of Fame website.

On this occasion, a gala dinner and an award presentation ceremony was held in Taipei, Taiwan. Prof. Diwan's son, Mr. Mukund Diwan, who is an Actuary himself and a retired Chairman of Life Insurance Corporation of India, has also made significant contributions in the betterment of actuarial education in India. He attended the award presentation ceremony. In a speech at the function, he assured the society and the audience that India will be a center of excellence for actuarial education.

This website has been launched in honor of Prof. G. S. Diwan and other great personalities who have made or are making significant contribution in the field of insurance in India. It has been conceived as an educational tool for people to improve their knowledge and awareness about: