This research analyzes the performance of the health insurance CO-OPs, examines their medical services and operating efficiency, and discusses an efficiency-based goal-oriented approach for potential cost reductions, premium changes, and government subsidies. Most CO-OPs suffer underwriting...

Underwriting and investment are two important and related business activities of insurance companies. However, studies on the interrelation between underwriting and investment risks of Property-Liability (P-L) insurance companies are sparse in the literature. Using a sample of U.S. P-L insurers,...

This study examines empirically how risk management, financial management, and capital management are related to each other in the property/liability insurance industry, thereby reflecting interactions in managerial decisions such as the choice of derivatives and reinsurance use, the allocation...

Purpose – The paper aims to examine theoretically valuation of weather derivatives and their hedging roles in corporate risk management. Design/methodology/approach – The paper introduces an extended financial market model in which the weather risk is included as an independent random...

This article analyses weather risk hedging efficiency in three European countries using weather derivatives traded at Chicago Mercantile Exchange (CME) and explores the potential of weather derivatives as a new investment asset to further diversify investors’ portfolios. The results document...

This study examines the extent to which regulatory forbearance can affect the fragility of U.S. property and liability (P/L) insurance firms. By using a split-population survival model, we find that the risk-based capital (RBC) ratio is inversely correlated with the resolution cost paid by...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>We develop an optimum risk–return hurricane hedge model in a doubly stochastic jump-diffusion economy. The model's concave risk–return trade-off dictates that a higher correlation between hurricane power and insurer's loss, a smaller variable hedging cost,...</p>