Huggenberger, Markus; Albrecht, Peter - In: Journal of Risk and Insurance 89 (2022) 4, pp. 907-950
We investigate the benefits of risk pooling for the policyholders of stock insurance companies under different solvency standards. Using second‐degree stochastic dominance, we document that the utility of risk‐averse policyholders is increasing in the pool size if the equity capital is...