Journal article
Local religious beliefs and insurance companies' risk-taking behaviour
Geneva papers on risk and insurance. Issues and practice, Vol.47(2), pp.242-278
04/01/2022
DOI: 10.1057/s41288-021-00211-z
PMCID: PMC8022316
PMID: 33840985
Abstract
We empirically examine the effect of local religious beliefs on the risk-taking behaviour of U.S. life insurers headquartered in that region. We distinguish between insurers that predominantly write annuities and insurers that predominantly write life insurance policies; the annuity business is relatively riskier than writing life insurance. Insurers headquartered in high-Catholic or low-Protestant areas are more likely to be annuity writers. Annuity writers located in high-Catholic or low-Protestant areas invest more in risky assets and exhibit higher investment return volatilities, as well as a higher volatility of their return on assets. Overall, our results suggest that local culture has significant influences on life insurers' behaviour.
Details
- Title: Subtitle
- Local religious beliefs and insurance companies' risk-taking behaviour
- Creators
- Thomas R. Berry-Stolzle - University of IowaJianren Xu - University of North Texas
- Resource Type
- Journal article
- Publication Details
- Geneva papers on risk and insurance. Issues and practice, Vol.47(2), pp.242-278
- DOI
- 10.1057/s41288-021-00211-z
- PMID
- 33840985
- PMCID
- PMC8022316
- NLM abbreviation
- Geneva Pap Risk Insur Issues Pract
- ISSN
- 1018-5895
- eISSN
- 1468-0440
- Publisher
- Springer Nature
- Number of pages
- 37
- Language
- English
- Date published
- 04/01/2022
- Academic Unit
- Finance
- Record Identifier
- 9984380396102771
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