A5055925285- Insurance and Financial Risk Management
- Healthcare Policy and Management
- Insurance, Mortality, Demography, Risk Management
- Risk Management in Financial Firms
- Agricultural risk and resilience
- Banking stability, regulation, efficiency
- Law, Economics, and Judicial Systems
University of Alabama
2020-2024
Abstract This paper investigates whether corporations purchase insurance for the real services that insurers provide. We examine real‐service efficiency hypothesis in industry by exploiting within firm‐year variation reinsurance usage and experience at line of business level. Our results show to access reinsurers’ expertise specialized knowledge. find that, same year, average multi‐line insurer purchases 2.4%–3.3% points more new lines relative existing lines. The demand declines 0.55%–0.80%...
Abstract We identify the effect of public guarantees on market discipline by exploiting variation in US state property–casualty insurer obligations. find that guaranty funds have little risk‐sensitivity financing overall, with exception rating changes at key threshold level A.M. Best's A− rating. For insurers rated before a downgrade, we premium growth business not covered falls relation to guarantees. estimate this difference be as high 14.9% for commercial insurers.
We assess the capacity of U.S. property-liability insurance industry and efficiency state guaranty fund system in response to large scale loss events resilience current growing challenges climate change. identify characteristics industry's capital structure that limit ability indemnify policyholders following extreme catastrophic losses. also consider sustainability over time under assumptions increasing frequency severity. find some attributes guarantees present short-term problems for...