This paper examines the dynamic adjustment process of the capacity ratio for property-casualty insurers. The primary objective is to understand how insurers adjust their capacity ratios to some optimal level. An understanding of the dynamic adjustment process of insurers’ capacity ratios may...

Previous research on life insurance purchases has focused on the long-run demand function. In this paper, we use a speed of adjustment model to determine how quickly households adjust their holdings of life insurance to the optimal level. Our results support the hypothesis that institutional...