Valuation of Household Losses in Child’s Death Cases for Insurance Purposes

Jędrzychowska, Anna; Kwiecień, Ilona

doi:10.1007/978-3-030-15581-0_17

Cited by 3 publications

(3 citation statements)

References 2 publications

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“…The calculations of planned expenditures (c), which due to death will not be made by the household, are omitted. This component is discussed in another work of the authors (Jędrzychowska and Kwiecień, 2019), allowing for a determination of the non-economic part of the loss and complementing the model of the whole loss valuation.…”

Section: The Theoretical Underpinningsmentioning

confidence: 99%

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The Child as a Family Asset? The Modelling of the Family' Economic Loss in Case of Premature Child Death

Kwiecień¹,

Jędrzychowska²

2020

ERSJ

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Purpose: EU policy investing in children involves a social assessment of the high value of household spending on having and bringing up children. Therefore, the question arises as to what loss the household as investor will bear in the event of the child's death, and what the economic value of the child. The research questions are as follows: How to assess the economic importance, economic value of a child in a household? What factors influence this economic value? Is it necessary to model it in time? Design/Methodology/Approach: We present the loss suffered by a household as a result of a child's death, based on selected economic theories and concepts for estimating human life and goods, assuming the child is a good of a given value. We build the model using financial mathematics, discounted cash flow calculations, annuity calculations, as well as social elements and intergenerational transfers. Findings: The obtained results indicate the high economic value of the child for the current, but also-and even the most-the future economic situation of the household. The compensatory awards in liability cases do not cover even the expenses incurred for the lost asset. It may lead to financial instablity of individual and externalisation of loss, especially when it comes to support during old age. Practical Implications: The modelling concept could determine the minimum economic and ethical value of the child from the point of view of the household and allow evaluation in the financial decisions and loss compensation instruments areas, such as life insurance, liablity claims or the systemic policy of supporting fertility and investing in children. Originality/Value: The study offers an in-depth insight into modelling of the household financial loss and valuation of the child.

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Section: The Theoretical Underpinningsmentioning

confidence: 99%

“…The different research models and systemic solutions in US and some European countries focused on non-economic loss (pain and suffering) in the context of value of life have been discussed in (Kwiecień, 2015), where also the other model was proposed, next developed in Jędrzychowska and Kwiecień (2019).…”

Section: Introductionmentioning

confidence: 99%

The Child as a Family Asset? The Modelling of the Family' Economic Loss in Case of Premature Child Death

Kwiecień¹,

Jędrzychowska²

2020

ERSJ

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“…Personal injury related to accidents at work was also analysed (Jędrzychowska and Kwiecień, 2015) as well as medical damage (Jędrzychowska, 2015). Currently, the authors are researching the damages for those indirectly affected (Jędrzychowska and Kwiecień, 2019).…”

Section: Introductionmentioning

confidence: 99%

Costs incurred by the mother as a result of childbirth and upbringing − changes in the career path

Jędrzychowska¹,

Poprawska²

2020

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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The article is a part of research on the financial consequences of household members' loss of health and life, in this case − a child. The amount of this loss can be estimated using, among others, the cost approach, including expenses and lost benefits associated with raising a child. The article analyzes lost benefits-the financial consequences that the mother incurs mainly due to birth and childcare, and which are associated with changes in career development. Calculations are presented for selected scenarios for the career path and a model for assessing the income gap between women: mother and a childless one has been proposed. It should be remembered that the child appears most often at the beginning of the mother's professional career. This is the time of the fastest wage increase. Therefore, given the non-linear trend of wage increases with seniority (close to exponential), the 'severity' of the child's appearance in the initial period of work is significant.

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The Influences of Birth and the Child—Raising on Household Finances: An Analysis of Lost Income

Jędrzychowska

Poprawska

2021

Eurasian Studies in Business and Economics

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Valuation of Household Losses in Child’s Death Cases for Insurance Purposes

Cited by 3 publications

References 2 publications

The Child as a Family Asset? The Modelling of the Family' Economic Loss in Case of Premature Child Death

The Child as a Family Asset? The Modelling of the Family' Economic Loss in Case of Premature Child Death

Costs incurred by the mother as a result of childbirth and upbringing − changes in the career path

The Influences of Birth and the Child—Raising on Household Finances: An Analysis of Lost Income

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