Is the Market Classification of Risk Always Efficient? - Evidence from German Third Party Motor Insurance

This paper studies the empirical effects of risk classification in the mandatory third-party motor insurance of Germany following the European Union’s directive to de-regulate insurance tariffs of 1994. We find evidence that inefficient risk categories had been selected while potentially efficient information was dismissed. Risk classification did generally not improve the efficiency of contracting or the composition of insureds in this market. These findings are partly explained by the continuing existence of institutional restraints in this market such as compulsory fixed coverage and unitary owner insurance.

Book Review of “At Risk: Social Justice in Child Welfare and Other Human Services” by Karen J. Swift and Marilyn Callahan, 2009, Toronto: University of Toronto Press

The newest book by Canadian social work scholars Karen Swift and Marilyn Callahan is exemplary of how other disciplines can invigorate social work theory. “At Risk” uses child welfare practice as an entry point for exploring the continuing movement away from addressing needs and towards the management of risk in the human services.