We study the effects of using investment advisers on life insurers’ investment performance. Using a measure of investment performance that accounts for investment risk and regulatory constraints, we find that life insurers experience an economically and statistically significant increase in...

We empirically examine two methods for measuring output in property-liability insurer efficiency studies: the value-added approach and the "flow" (or financial intermediation) approach. The approaches are not mutually consistent. The value-added approach is closely related to traditional...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This paper examines the effect of rate regulation on the management of the property-liability insurer loss reserve. The political cost hypothesis predicts that managers make accounting choices to reduce wealth transfers resulting from the regulatory process. Managers may under-state...