In the aftermath of a natural catastrophe, there is increased demand for skilled reconstruction labor, which leads to significant increases in reconstruction labor wages and hence insured losses. Such inflation effects are known as "Demand Surge" effects. It is important for insurance companies...

This study examines the relation of incentives and risk taking for 104 listed U.S. insurance companies over 2006-2010. Our results show that independent director compensation is positively related to risk taking as are CEO compensation and institutional ownership. Besides dollar value and...

In this paper I investigate the risk-taking channel of the monetary policy in the U.S. during the period of Large Scale Assets Purchases (LSAPs) programs; from November 2008 to September 2014. Using High-Frequency Identification (HFI) estimates of the monetary policy stance and constructed data...

Health insurance is increasingly provided through managed competition, in which subsidies for consumers and risk adjustment for insurers are key market design instruments. We illustrate that subsidies offer two advantages over risk adjustment in markets with adverse selection. They provide...