We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice … that incorporates "standard" risk aversion (concave utility over final wealth), loss aversion, and nonlinear probability …. More specifically, we find that standard risk aversion is small, loss aversion is nonexistent, and nonlinear probability …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

This paper examines the potential for the U.S. insurance industry to cause systemic risk events that spill over to … the potential to cause systemic risk, and most global insurance organizations have exposure to derivatives markets. To … reduce systemic risk from non-core activities, regulators need to develop better mechanisms for insurance group supervision …

risky. More specifically, primary indicators and contributing factors associated with systemic risk are assessed for the … insurance sector. A distinction is made between the core activities of insurers (e.g., underwriting, reserving, claims … characteristics and their relationship with a well-known systemic risk measure, SRISK, is provided. The core activities of property …

-investment-grade, these bonds are underpriced. Consistent with insurers' high (low) demand for IG bonds with high (low) systematic risk …

This paper identifies the risk and risk-adjusted return determinants of US insurers. We find that the significant firm …-specific determinants for risk and risk-adjusted return vary slightly for the risk proxy and risk-adjusted return proxy used, and the types … to both total risk and systematic risk; in addition, size is positively related to systematic risk. Profitability and …

-life insurance sectors. We first document M&A transactions in the US insurance market between 1990 and 2022 and select the M …&A transactions related to US target insurers. We then study the evolution of the life and non-life insurance sectors over time in … over time. We empirically test the difference between the M&As of the life and non-life insurance sectors by employing a …

We develop a new dataset to study homeowners insurance. Our data on over 47 million observations of households …' property insurance expenditures from 2014-2023 are inferred from mortgage escrow payments. First, we find a sharp 33% increase … associated with a stronger relationship between premiums and local disaster risk: A one standard-deviation increase in disaster …

the choice and use of financial covenants in private and public debt contracts, as well as the role that risk management … covenants linked to performance. Risk management attenuates the effect of uncertainty on the inclusion of financial covenants … while firms characteristics especially related to default risk intensify the effect. In bond contracts, uncertainty …