An Examination of Alternative Approaches to Risk Management and Insurance Research

• Author: Mark S. Dorfman,Steven C. Tippins
• Published date: 01 March 2006
• Date: 01 March 2006
• DOI: http://doi.org/10.1111/j.1540-6296.2006.00085.x

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Risk Management and Insurance Review, 2006, Vol.9, No. 1, 63-74

PERSPECTIVES

ANEXAMINATION OF ALTERNATIVE APPROACHES

TO RISK MANAGEMENT AND INSURANCE RESEARCH

Mark S. Dorfman

Steven C. Tippins

ABSTRACT

Much current risk management and insurance research follows a pattern pre-

scribed by the science paradigm. This article discusses some well-recognized

problems associated with the science paradigm, and then presents several al-

ternatives that can supplement the science paradigm, thereby broadening and

deepening the scope of risk management and insurance research and education.

INTRODUCTION

This article explores the current scope and direction of risk management and insurance

(RMI) research. Its purposes are to examine the paradigm underlying much of this re-

search, to cause researchersto assess their own beliefs about this important subject and to

suggest some possible alternatives for expanding the nature and range of this work. Risk

management and insurance research questions generally involve real-world issues, and

research output could prove moreuseful to problem-solvers if multiple approaches were

used. Moreover, many risk management problems involve “human nature,” normative

issues, and value judgments. Current concerns about funding social security, providing

access to health care, and financing the terrorism loss exposure demonstrate that many

areas of interest to RMI researchers have immediate and broadsocietal impact. Any con-

traction of the range of research issues addressed by the discipline caused, for example,

by a need for historic data, or for any other reason, should be viewed as a cause for

concern in that it reduces the range of questions that can be addressed.

The general reliance on microeconomic analysis and on econometric techniques in re-

search stems from a general reliance on the classical science paradigm. After establish-

ing a basis for this assertion, the article identifies some distinct limitations affecting

RMI research arising from this method. The article concludes with a discussion of some

alternative approaches.

Mark S. Dorfman, Ph.D., retired; email: mdorfman@carolina.rr.com. Steven Tippins is at

Roosevelt University, 1400 N. Roosevelt Blvd. C. Schaumburg, IL 60173; phone: (847)-619-4883;

fax: (847)-619-4852; e-mail: stippins@roosevelt.edu. This article was subject to anonymous peer

review.

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