The government behind insurance governance: Lessons for ransomware

The insurance as governance literature focuses on the ability of private enterprises to collectively regulate, pool, and distribute risks. This paper analyzes how governments support insurance markets to maintain insurability and limit risks to society. We propose a new conceptual framework grouping government interventions into three dimensions: regulation of risky activity, public investment in risk reduction, and co-insurance. We apply this framework to six case studies, describing insurance markets' reliance on public support in more analytically precise terms. We analyze how mature insurance markets overcame insurability challenges akin to those currently presented by extortive cybercrime. Private governance struggled when markets grew too big for informal coordination or when (tail) risks escalated. Government interventions vary widely. Some governments prioritize supporting economic activity while others concentrate on containing risks. Governments also choose between risk reduction and ex post socialization of losses. We apply these insights to the market for ransomware insurance, discussing the merits and potential hazards of current proposals for government intervention.     

The role of authentic leadership on healthcare Street-Level Bureaucrats’ well-being during the pandemic

This study uses Conservation of Resources Theory, to explain Street-Level Bureaucrats’ (SLBs) workplace behavioural responses to threats to their well-being. We examine whether authentic leadership within street-level organisations positively impacts employee well-being by increasing SLBs’ perception of personal resources, and reducing their perceptions of work harassment. The research design comprises a survey that solicited quantitative and qualitative data from 163 healthcare SLBs working in Australian hospitals during the pandemic in April 2020. Analysis of the means indicates low levels of satisfaction with leadership and low levels of well-being for SLBs. The structural equation modelling findings show that poor leadership is associated with higher levels of work harassment and lower levels of employee well-being. Qualitative data support these findings. As healthcare workers were already listed as over-represented in the stress-related workers compensation statistics, one strategy may be to improve the level of organisational support by upskilling managers in authentic leadership behaviours with the aim of increasing their perception of support so as to increase employee well-being. This will benefit employees and their families, and the community they service.

Points for practitioners

• Street-Level Bureaucrats (SLBs) have been increasingly experiencing the public sector gap (demand outstripping supply of resources) because of the dominance of the austerity-driven managerialist paradigm.
• The recent COVID-19 crisis amplified the severity and impact of the public sector gap causing increased perceptions of work harassment and reductions in SLBs’ well-being.
• However, SLBs with high levels of Psychological Capital had a natural buffer in place to protect their well-being, and as such, they perceived less work harassment and erosion of their well-being.
• The way forward is to complement the austerity-driven managerialist paradigm in management decision-making with authentic leadership behaviours focused on maximising the well-being of SLBs and the public.