Article: An actuarial approach to assessing personal injury compensations in Singapore: Theory and practice

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TitleAn actuarial approach to assessing personal injury compensations in Singapore: Theory and practice
AuthorsChan, FWH1
Chan, WS3
Li, JSH2
KeywordsActuarial evidence
mortality projection
multipliers
Ogden Tables
Issue Date2010
PublisherWorld Scientific Publishing Co Pte Ltd. The Journal's web site is located at http://www.worldscinet.com/ser/ser.shtml
CitationSingapore Economic Review, 2010, v. 55 n. 4, p. 705-731 [How to Cite?]
DOI: http://dx.doi.org/10.1142/S0217590810004048
AbstractIn Singapore personal injury litigations, successful claimants usually receive their compensations as a lump sum. The main advantage of a lump sum payment is that the proceedings can be concluded with a 'clean break' between the parties. The lump sum is a result of discounting the future pecuniary values into a single present-day amount, considering the time value of money and the claimant's mortality. Conventionally, lump sum awards are determined by making reference to a spread of amounts in comparable cases. However, a fairer method would be one that involves input from not only lawyers but also other experts including economists and actuaries. This study, which is carried out by an inter-professional working group, provides a set of actuarially computed tables for use in personal injury settlements in Singapore. The calculations involve a consideration of recent advancements in stochastic mortality modeling and an empirical study on the econometrics of real returns on risk-free assets in Singapore. We then present two recent personal injury cases in Singapore, aiming at helping the Singapore legal profession understand and use the economic principles with actuarial tables, and educating economists and actuaries the legal concerns and concepts in personal injury cases. © 2010 World Scientific Publishing Company.
ISSN0217-5908
2011 Impact Factor: 0.139
2011 SCImago Journal Rankings: 0.028
DOIhttp://dx.doi.org/10.1142/S0217590810004048
ISI Accession Number IDWOS:000286391800006
ReferencesReferences in Scopus
DC Field
Value
dc.contributor.authorChan, FWH
dc.contributor.authorChan, WS
dc.contributor.authorLi, JSH
dc.date.accessioned2011-07-06T04:49:15Z
dc.date.available2011-07-06T04:49:15Z
dc.date.issued2010
dc.description.abstractIn Singapore personal injury litigations, successful claimants usually receive their compensations as a lump sum. The main advantage of a lump sum payment is that the proceedings can be concluded with a 'clean break' between the parties. The lump sum is a result of discounting the future pecuniary values into a single present-day amount, considering the time value of money and the claimant's mortality. Conventionally, lump sum awards are determined by making reference to a spread of amounts in comparable cases. However, a fairer method would be one that involves input from not only lawyers but also other experts including economists and actuaries. This study, which is carried out by an inter-professional working group, provides a set of actuarially computed tables for use in personal injury settlements in Singapore. The calculations involve a consideration of recent advancements in stochastic mortality modeling and an empirical study on the econometrics of real returns on risk-free assets in Singapore. We then present two recent personal injury cases in Singapore, aiming at helping the Singapore legal profession understand and use the economic principles with actuarial tables, and educating economists and actuaries the legal concerns and concepts in personal injury cases. © 2010 World Scientific Publishing Company.
dc.description.natureLink_to_subscribed_fulltext
dc.identifier.citationSingapore Economic Review, 2010, v. 55 n. 4, p. 705-731 [How to Cite?]
DOI: http://dx.doi.org/10.1142/S0217590810004048
dc.identifier.doihttp://dx.doi.org/10.1142/S0217590810004048
dc.identifier.epage731
dc.identifier.hkuros183774
dc.identifier.isiWOS:000286391800006
dc.identifier.issn0217-5908
2011 Impact Factor: 0.139
2011 SCImago Journal Rankings: 0.028
dc.identifier.issue4
dc.identifier.scopuseid_2-s2.0-78651483723
dc.identifier.spage705
dc.identifier.urihttp://hdl.handle.net/10722/134706
dc.identifier.volume55
dc.languageeng
dc.publisherWorld Scientific Publishing Co Pte Ltd. The Journal's web site is located at http://www.worldscinet.com/ser/ser.shtml
dc.publisher.placeSingapore
dc.relation.ispartofSingapore Economic Review
dc.relation.referencesReferences in Scopus
dc.subjectActuarial evidence
dc.subjectmortality projection
dc.subjectmultipliers
dc.subjectOgden Tables
dc.titleAn actuarial approach to assessing personal injury compensations in Singapore: Theory and practice
dc.typeArticle
Author Affiliations
  1. The University of Hong Kong
  2. University of Waterloo
  3. Chinese University of Hong Kong