In crisis times, insurance companies might feel the pressure to present a performance of their investment portfolios that is superior to the market, since investment portfolios back the claims of policyholders and serve as a signal for the claims' safety. I seek to show whether a stock market...

Purpose: Operational risks appear as the main threats of the modern world. Mistakes made by employees, an imperfect information systems or changes in the law can cause losses that businesses today are not even able to estimate. Therefore, in the face of widespread the asymmetry of information,...

Purpose: The purpose of this study investigates the role of directors and officers (D&O) insurance and restatement announcements in earnings management strategies. Design/methodology/approach: Using data on Taiwan's capital market, we implement two-stage method regression to examine the effects...

Insurance companies and banks regularly have to face stress tests performed by regulatory instances. To model their investment decision problems that includes stress scenarios, we propose the worst-case portfolio approach. Thus, the resulting optimal portfolios are already stress test prone by...

We develop an agent-based simulation of the catastrophe insurance and reinsurance industry and use it to study the problem of risk model homogeneity. The model simulates the balance sheets of insurance firms, who collect premiums from clients in return for insuring them against intermittent,...

This paper analyzes the insurability of pandemic risk and outlines how underwriting policies and scenario analysis are used to build resilience upfront and plan contingency actions for crisis scenarios. It then summarizes the unique “lessons learned” from the Covid-19 crisis by baselining...

This study, which analysed the profitability of 42 reinsurers in Sub-Saharan Africa from 1991 to 2020, revealed that various factors such as gross domestic product, competition (HHI), premium growth, investment performance, underwriting risk, and operational efficiency affect the profitability...

Purpose - This study investigated the impact of corporate ownership structure on agency costs in the insurance industry. Design/methodology/approach The study sample included 23 insurance companies listed on the Amman Stock Exchange (ASE) from 2010 to 2019. Panel regression was used to account...

In 2003, Swiss Re introduced a mortality-based security designed to hedge excessive mortality changes for its life book of business. The concern was apparently brevity risk, i.e., the risk of premature death. The brevity risk due to a pandemic is similar to the property risk associated with...

The continuing trend of increasing frequency and severity of losses from natural and man-made-catastrophes during the last decades has drawn attention to catastrophe risk management. Considering the loss potential of catastrophic events, the private insurance markets' capacity does not seem to...