In this paper, we first construct a cyber risk consciousness score using a text mining algorithm, applied to annual reports of large‐ and mid‐cap US banks and insurers from 2011 to 2018. We next categorize the firms' cyber risk management based on keywords to study determinants and...

This study examines spillover effects following Volkswagen's admission of emissions cheating. We first estimate initial operational losses of 8.45% of Volkswagen's equity market capitalization on the date before the announcement, reputational losses up to five times these losses, and significant...

In this paper, we study the awareness of European and U.S. insurance companies of climate-related risks and opportunities using a respective indicator from the Refinitiv Eikon database that uses reporting data. Based on this, we examine the determinants and value of the awareness of business...

Purpose: Due to the continuing low interest rate environment as well as the increase in acquisition costs, price transparency, cost transparency and competition with banks, the cost of life insurance becomes increasingly important for customers, insurers and shareholders. Against this...

Purpose: Previous research observed that large internal fraud events in the general financial services industry imply negative spillover effects, whereas internal fraud in investment banks can imply significantly positive effects for other banks. This paper aims to shed further light on this...

Purpose: Financial firms announcing large operational losses have empirically been shown to cause significant negative spillover effects in other non-announcing firms in case of the banking and insurance industry. The purpose of this paper is 1) to model such spillover effects in a network from...

Among the trends impacting most industries are new mobility concepts, digitalization, urbanization, rising environmental awareness, and demographic change. The automobile insurance industry, in particular, is strongly affected by new mobility concepts, including autonomous, shared, and electric...

Universal life policies are the most popular insurance contract design in theUnited States. They have either a level death benefit paying a fixed faceamount, or an increasing death benefit, which additionally pays the availablecash value, and both types include the option to switch from one to...

Common features in life insurance contracts are an interest rate guarantee andpolicyholder participation in the returns of insurers’ reference portfolio, which canbe of substantial value. The aim of this paper is to analyze the model risk involvedin pricing and risk assessment that arises from...

Proper pricing and risk assessment of implicit options in life insurance contractshas gained substantial attention in recent years, which is reflected in a growing literaturein this field. The purpose of this article is to outline the significance of implicitoptions in life insurance. Toward...