Do Insurers Use Internal Capital Markets to Manage Regulatory Scrutiny Risk?
“… almost 50 percent of insurers at risk of facing additional regulatory scrutiny due to failing four Insurance Regulatory Information System (IRIS) ratios received sufficient internal capital to avoid enhanced regulation. Moreover, the likelihood and extent of internal capital allocation are related to regulatory scrutiny risk and the amount of capital allocated is typically just enough to avoid regulatory […]
Underwriting Performance and Investment Risk-Taking in the Property-Liability Insurance Industry
“Economic theory suggests that insurers should prioritize underwriting over investment as a source of income. We find that many U.S. non-life insurers conform to theory: they consistently earn high returns on underwriting and have relatively low-risk investment portfolios. A subset of insurers, however, do the opposite: they consistently earn low returns on underwriting and have relatively […]
Responsible Investments in Life Insurers’ Optimal Portfolios under Solvency Constraints
“Because of the specific nature of a life insurer’s business model, the impact of the ESG level on the expected return of life insurers can substantially differ from the corresponding impact for classical investors.” Lire
Insurance Monopoly and Imperfect Competition when Insurers Affect Risk
“We study insurers’ behavior under monopoly and Cournot duopoly when they can affect the probability or magnitude of harm from accidents.” Lire
Personal Data and Consumer Insurance: A Freedom to Share or Duty to Disclose?
“Contributing to the discussion on the interpretation and use of the right to data portability this paper looks specifically at the role for Article 20 of the General Data Protection Directive to help insurers gain access to personal data they would otherwise not have access to. As proposed in this paper there is potential for […]
Insurers’ Investments before and After the Covid-19 Outbreak
“This paper examines the impact of the pandemic outbreak on Italian insurers’ investment decisions between 2017 and 2020. “ Lire
Structure and Complexity of Global Insurance Groups
“We construct and analyze a novel dataset on the corporate structure of the top 100 global insurance groups with headquarters located in 21 countries and their 8,000 subsidiaries located in 117 countries and offshore territories. We document how the level of internationalization and the business focus of foreign subsidiaries vary across headquarters regions as well […]
On the decomposition of an insurer’s profits and losses
“Current reporting standards for insurers require a decomposition of observed profits and losses in such a way that changes in the insurer’s balance sheet can be attributed to specified risk factors. Generating such a decomposition is a nontrivial task because balance sheets generally depend on the risk factors in a non-linear way. This paper starts […]