This research analyzes the performance of the Risk Based Capital (RBC) ratio and other variables in predicting insolvencies in the property-liability insurance industry during the period 1994 to 2008. This research contributes to the literature by analyzing a longer period of time than previous...

This study investigates how U.S. property-liability insurers changed their behavior response to the risk-based capital (RBC) requirements implemented in 1994. We posit that We posit that insurers may have acted to manage their operations and/or exploit anomalies in the RBC may have acted to...