Journal article
External Impacts on the Property-Liability Insurance Cycle
The Journal of risk and insurance, Vol.62(4), pp.738-754
12/01/1995
DOI: 10.2307/253593
Abstract
Traditionally, underwriting performance is considered to be a function of industry-specific institutions. Using quarterly data from 1974 through 1990, we provide evidence of a long-run link between the general economy and the underwriting performance as measured by the combined ratio. Using cointegration techniques, we estimate the long-run relationship between the general economy as measured by real gross domestic product, the short-term interest rate, and inflation. We then estimate the short-run link between the industry and the general economy using vector autoregression techniques and find that, although the property-liability insurance industry is linked to the long-run performance of the national economy, short-run shocks in economic variables have little effect on the combined ratio.
Details
- Title: Subtitle
- External Impacts on the Property-Liability Insurance Cycle
- Creators
- Martin F. GraceJulie L. Hotchkiss
- Resource Type
- Journal article
- Publication Details
- The Journal of risk and insurance, Vol.62(4), pp.738-754
- Publisher
- American Risk and Insurance Association
- DOI
- 10.2307/253593
- ISSN
- 0022-4367
- eISSN
- 1539-6975
- Number of pages
- 17
- Language
- English
- Date published
- 12/01/1995
- Academic Unit
- Finance
- Record Identifier
- 9984701251302771
Metrics
1 Record Views