It is shown in this article that the risk-free interest rate is not cointegrated with the profitability of each line of insurance in the property-liability industry. This counters the accepted aggregate results. Two distinct interpretations of this result are that the risk-free interest rate...

This article provides a philosophical discussion detailing the limitations of univariate analysis in the pre-testing step of data analysis. The case in point is the relationship between the property-liability aggregate underwriting margin and interest rates. Haley (1993) and Choi, Hardigree, and...

This paper examines whether the underpricing of IPOs exists in a regulated industry such as insurance, which is the largest state-regulated industry in the United States. Our results find significant evidence of a joint effect of price support and information asymmetry on insurance IPOs. This...

Natural disasters can affect insurer share prices in two counterbalancing ways: (1) through the uncertainty regarding an insurer’s ability to handle loss claims and (2) through a potential increase in demand for insurance and/or increase in insurance rates. Given the historically catastrophic...

Identifies three “pillars” of US retirement benefits policy (savings, redistribution and insurance) and outlines the legislative development of private pensions since the 1920s. Supports reform of the social security system and proposes that employee contributions should be held in privately...

During the spring and early summer of 1991 the life insurance industry experienced an unprecedented series of major life insurer insolvencies. The objective of this paper is to determine whether or not policyholder panic resulted from these failures. The analysis shows that each of the failed...