Historical evidence shows insurer insolvencies are, on average, three-to-five times more expensive than those of other financial institutions. Using a unique dataset of insurer insolvencies from 1986 to 1999, we examine the cost of insolvency resolution and the factors driving these costs. We...

Automobile and workers' compensation insurance are relatively homogeneous products sold under varying regulatory systems among the states. This paper investigates how price regulation affects the capital structure decisions of profit-maximizing insurers who sell insurance in both competitive...

Automobile and workers' compensation insurance are relatively homogeneous products sold under varying regulatory systems among the states. This paper investigates how price regulation affects the capital structure decisions of profit-maximizing insurers who sell insurance in both competitive...

In this report we examine the likely effects of an Optional Federal Charter (OFC) regulatory system on competition in the life insurance and annuities industry and related markets. Increasingly, many US insurers advocate the creation of an OFC and the associated regulatory framework for several...

The rising cost and diminishing availability of homeowners insurance have become a hot topic in many parts of the country. A number of factors have been blamed for causing the adverse price and availability trends, with insurers and consumer groups offering differing opinions on the causes....

The purpose of this briefing paper is to assess the implications of natural disasters for the supply of home insurance. We focus on the risk of hurricanes and earthquakes. Our analysis begins with a review of the challenges that catastrophes pose for the insurance mechanism and how insurers seek...

Federal crop insurance began in 1938 as a focused program to correct certain perceived market failures. It has transformed into a massive wealth transfer scheme that is frequently the subject of supposed legislative reforms. Yet each wave of changes has, for the most part, moved the program...