Unité mixte de recherche 7235

Interactions Between Risk-Taking, Capital, and Reinsurance for Property-Liability Insurance Firms

Selim Mankai, Aymen Belgacem

[en]Theory and empirical evidence suggest short-run interactions between capital and risk. This paper analyzes the effects of reinsurance, as a new endogenous decision variable, on this policy mix. We examine this issue using a system of simultaneous equations applied to the U.S. property-liability insurance industry. The results identify significant interactions between capital, risk and reinsurance. The relationship between risk and capital is positive, indicating the effectiveness of regulatory mechanisms. Reinsurance is negatively associated with capital, for which it appears to act as a substitute. These results are sensitive to the level of capital held in excess of the regulatory minimum requirements. Weakly capitalized firms adjust their reinsurance and risk levels more quickly and try to rebuild an appropriate capital buffer. Unlike other decision variables, the capital ratio converges toward a long-run target level.[/en]

AGENDA

lundi 12 décembre 2022

Law, Institutions and Economics in Nanterre (LIEN)

Clément Brébion (Copenhagen BS)

En salle 614 et en distanciel

Unemployment Insurance Eligibility and Employment Duration

mardi 13 décembre 2022

Développement Durable Environnement et Energie (DDEE)

Nicolas Astier (Paris School of Economics)

16h-17h

Riding together: eliciting travelers’ preferences for long-distance carpooling

mercredi 14 décembre 2022

Économies du monde musulman

Mohamed Touati Tliba (École Supérieure de Commerce, Alger)

The scientific wealth of nations with special reference to MENA region: a cross-country productivity analysis of academic research

jeudi 15 décembre 2022

Doctorants

Pablo Aguilar Perez

Profitability and solvency of French insurance companies in an environment of low interest rates

jeudi 15 décembre 2022

Groupe de travail « Intelligence artificielle »

Matthieu Latapy (LiP6, CNRS / Sorbonne Université)

Salle G614B

Résistance — Perturber les Infrastructures en Réseaux

jeudi 15 décembre 2022

Groupe de travail Economie Comportementale

Magali Dumontet

TBA

jeudi 5 janvier 2023

Lunch

Mehdi Aït-Hamlat, Florian Baudoin, Tanguy Bonnet

Nouveaux doctorants

mardi 10 janvier 2023

Développement Durable Environnement et Energie (DDEE)

Antoine Missemer (CNRS, CIRED Paris)

Pour une histoire alternative des rapports économie-environnement : à propos de ‘A History of Ecological Economic Thought’

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