This paper examines the reaction of insurance stock prices to the 1 989 Loma Prieta earthquake. Three theories about the perceived future operating performance of insurance companies following the earthquake are tested: (1) substantial cash outflows due to the claims, (2) abandonment of...

This study examines the changes in insurance firm value following the 1994 Los Angeles earthquake. While prior studies found that the 1989 San Francisco earthquake was associated with an increase in earthquake insurers’ firm value, the findings of this study indicate that earthquake firms...

This paper presents an alternative method for evaluating property exposures, which is one part of the risk management process. The underlying premise is that the value of a property exposure depends upon the incremental cash flows lost due to a property loss and upon the firm’s cost of...

This research examines whether a competitive advantage exists for insurers which provide independent agencies with rating software to generate price quotes. Data relative to the Business Owners line of insurance were collected from several Wisconsin agencies which represent several BOP insurers,...