This article provides a philosophical discussion detailing the limitations of univariate analysis in the pre-testing step of data analysis. The case in point is the relationship between the property-liability aggregate underwriting margin and interest rates. Haley (1993) and Choi, Hardigree, and...

Concentration in the U.S. insurance industry’s market shares and ownership, coupled with a network interlocking ownership relationships by institutional investors, raise social concerns. Studying the relationship between Tobin’s q and corporate governance features of the industry, we fail to...

This study extends previous research on service quality in the private passenger automobile insurance industry by providing empirical evidence using an improved proxy for the value of service. The endogeneity of the value of service is recognized and treated statistically with the two-stage...

We develop a model of price competition between insurers where insurers maximize expected profit subject to a solvency constraint. Insurers base prices in part on expected losses, the estimates of which are updated in a Bayesian fashion. We assume that insurers are overconfident—they...

Underwriting cycles are associated with a mystique that few topics in the area of risk and insurance share. Many explanations and theories have focused on underwriting cycles, but little research exists to discern the relative importance of these theories in explaining insurance pricing and...

This study examines the relation between corporate governance and performance and the relation between ownership structure and performance in the Taiwanese life insurance industry. We use the value-added approach of data envelopment analysis (DEA) to measure performance. For our first...

We study pricing models for a participating deferred annuity. Game theory is used to formulate different pricing models based on customers’ preference concerning benefits and risks. The objective is to maximize social welfare. Value at Risk (VaR) under multi-stage stochastic processes is...

We construct two potential scenarios to depict the cash flows from the operation of a captive insurer. We then use Monte Carlo simulation to identify conditions that are sustainable in practice and under which captives have a high probability of creating positive shareholder value. We use...

This note presents survey findings regarding risk management and insurance curriculum design issues. Several courses are a primary foundation experience.

Two alternative interpretations of the demand for insurance can be derived from the basic insurance model: (1) insurance is a preference for certain losses over uncertain ones of the same expected magnitude, or (2) insurance is a demand for an income transfer if the bad state of the world...