Market expectations following catastrophes : an examination of insurance broker returns

Record image
MARC record
Tag12Value
LDR  00000cab a2200000 4500
001  MAP20160037159
003  MAP
005  20161223140544.0
008  161213e20161205usa|||p |0|||b|eng d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
084  ‎$a‎212
100  ‎$0‎MAPA20160015355‎$a‎Ragin, Marc A,
24510‎$a‎Market expectations following catastrophes‎$b‎: an examination of insurance broker returns‎$c‎Marc A. Ragin, Martin Halek
520  ‎$a‎This article investigates the effect major catastrophes are expected to have on equilibrium price and quantity in the insurance market. In particular, it is examine whether investors expect total industry revenue to increase following a disaster's shock to insurers' financial capital. Rather than examine insurers directly, it is study insurance brokers, who earn commissions on premium revenue but do not pay losses following a disaster. It was conduct an event study on insurance broker stock returns surrounding the 43 largest insuredloss catastrophes since 1970. it was find that brokers earn positive abnormal returns on the day of the event, and that these returns are sustained following the top 20 largest events. It is then investigate factors influencing these returns and find that returns are positively related to the size of the loss and negatively related to existing insurer capital. From this, It is conclude that catastrophe shocks are expected to increase net industry revenue, benefiting brokers most immediately. This investor response is consistent with economic theories of a negative relationship between capital and insurance prices and price-inelastic demand for commercial insurance.
650 4‎$0‎MAPA20080557508‎$a‎Catástrofes
650 4‎$0‎MAPA20080592578‎$a‎Política de precios
650 4‎$0‎MAPA20080586294‎$a‎Mercado de seguros
650 4‎$0‎MAPA20080616106‎$a‎Cálculo de probabilidades
650 4‎$0‎MAPA20080610012‎$a‎Coste de los accidentes
650 4‎$0‎MAPA20080545772‎$a‎Acciones
650 4‎$0‎MAPA20080600600‎$a‎Corredores de seguros
7001 ‎$0‎MAPA20080656157‎$a‎Halek, Martin
7730 ‎$w‎MAP20077000727‎$t‎The Journal of risk and insurance‎$d‎Nueva York : The American Risk and Insurance Association, 1964-‎$x‎0022-4367‎$g‎05/12/2016 Volumen 83 Número 4 - diciembre 2016 , p. 849-876