This study examines the effect of a pollution liability insurance mandate on corporate environmental compliance in Shenzhen, China. We employ a triple differences design, comparing electroplating and circuit board manufacturing firms, mandated to purchase insurance, to industries and a...

This paper aims to assess the adequacy of obligatory tax advisors' insurance to meet their needs in Poland and Czechia using the comparative-legal method. It is crucial, due to the need to protect the weaker party in a transaction and provide certainty in trading. The comparison is made between...

This study examines the effect of a pollution liability insurance mandate on corporate environmental compliance in Shenzhen, China. We employ a triple differences design, comparing electroplating and circuit board manufacturing firms, mandated to purchase insurance, to industries and a...

Modern society mitigates and transfers risks in a variety of ways, which range from catastrophe prevention and insurance solutions through to injustices of a minor and inconspicuous nature. We show that the measures taken depend on the uncertainty about the risks in question and involve three...

This work provides an economic exploration of the multifaceted world of medical malpractice risk. Third party liability insurance plays a central role in protecting healthcare providers and public care institutions from the financial consequences of medical malpractice claims, although in recent...

One of the challenges in the healthcare sector is making accurate forecasts across insurance years for claims reserve. Healthcare claims present huge variability and heterogeneity influenced by random decisions of the courts and intrinsic characteristics of the damaged parties, which makes...

Purpose - This paper explores the association between directors' and officers' liability insurance (D&O insurance) and management tone manipulation. Design/methodology/approach - This study uses data from A-share listed non-financial companies from 2009 to 2021 as its sample for empirical tests....

This paper aims to assess the adequacy of obligatory tax advisors' insurance to meet their needs in Poland and Czechia using the comparative-legal method. It is crucial, due to the need to protect the weaker party in a transaction and provide certainty in trading. The comparison is made between...

There is a well-known conflict of interest between liability insurers and policyholders with respect to the decision to settle or litigate a claim. This short note provides a simple graphical explanation for the problem and grounds it in the way the structure of the parties’ payouts drives...

PurposeThis study aims to investigate whether firms purchase directors' and officers' liability (D&O) insurance when the country-level economic policy uncertainty (EPU) is high.Design/methodology/approachThis study uses D&O insurance data from Chinese listed firms between 2003 and 2019 to...

Directors and officers liability insurance (D&O insurance) has gradually emerged as a vital component of external governance mechanism, allowing the appropriate transfer of decision-making risks to insurance companies. While D&O insurance can serve as an incentive for directors to actively...

In a recent article, Guerra et al. (2022c) considered the problem of liability for accidents caused by the activity of robots, proposing a novel liability regime, which they referred to as ‘manufacturer’s residual liability.’ Under this regime, injurers (robot operators) and victims are...

We examine the risk-preparing benefits of Chinese audit firms' professional indemnity insurance (PII) and professional risk fund (PRF) by using the Notice on Adjusting the Application Requirement of Audit Firms for Securities Qualifications as an exogenous shock. This policy requires audit firms...

Der Versicherungsschutz in Haftpflicht- und Rechtsschutzversicherung knüpft an Rechtsstreitigkeiten des Versicherungsnehmers mit einem Dritten an. Soweit es um die Rechtsschutzkomponente dieser Versicherungen geht, fragt sich, inwieweit der Dritte dem Versicherungsnehmer durch Behauptung...

We examine a model that incorporates two hidden-actions of the manager: a productive effort and a manipulative effort. The manager is paid a bonus based on the accounting report that the manager can manipulate. A downward restatement of the accounting report triggers lawsuits. The manager is...

IFRS 17 introduces the concept of a risk adjustment that compensates insurers for the uncertainty about the amount and timing of the cash flows that arise from non-financial risks. The method for its calculation is not prescribed and several options are emerging, including value at risk and cost...

Using the sample of Chinese publicly listed companies from 2008-2018, we find that the firms whose managers are covered by Directors’ and Officers’ Liabilities Insurance (D&O insurance) are more likely to have better performance in their corporate social responsibility (CSR) activities. The...

This case study examines the decision-making processes of an insurance company as it evolves its project practices. The case examines the organization's journey through its leadership and technical departments as they determined that pure scrum was not delivering on their value expectations. The...

This paper reviews evidence from the insurance industry that examines scale economies of mutual vs stock organizational forms. We introduce slack-based measure data envelopment analysis (SBM-DEA) to estimate technical efficiency of a property-liability insurer relative to a reference set...

Insurance pricing is subject to stricter regulation in some states than others. This cross-sectional variation, coupled with the occurrence of staggered deregulation in several states, enables a powerful test of the political cost hypothesis that managers manipulate accruals to mitigate adverse...

This paper explores the evolution of the civil liability regime for insurance claims settlement disputes in the United States, and the ways in which it has affected the incidence of disputes and litigation of insurance claims. The paper first surveys the history of insurance bad faith legal...

Conventional insurance law lore provides intentional torts are not, and should not be, covered by insurance. There are four primary justifications for this: 1) injuries or losses must be fortuitous (i.e., accidental) to be covered by insurance, 2) most insurance policies contain express...