The Influence of Underwriting Cycle on Loss Reserve Management: Evidence from the United Kingdom Non-life Insurance Industry
博士 === 國立成功大學 === 企業管理學系碩博士班 === 101 === The purpose of this study was to investigate the impact of the underwriting cycle on loss reserve management. We used the United Kingdom non-life insurance industry firm-years data during 1985 to 2006 to examine the multiple relations between loss reserving m...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Others |
| Language: | en_US |
| Published: |
2013
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| Online Access: | http://ndltd.ncl.edu.tw/handle/evxncr |
| Summary: | 博士 === 國立成功大學 === 企業管理學系碩博士班 === 101 === The purpose of this study was to investigate the impact of the underwriting cycle on loss reserve management. We used the United Kingdom non-life insurance industry firm-years data during 1985 to 2006 to examine the multiple relations between loss reserving management and the underwriting cycle. We found that the an underwriting cycle exists with a structure change possibly caused in 2001. Moreover, we examined the relation between earning management, underwriting cycle, and loss reserve management. Our results show that the insurers are more likely to understate reserves to avoid small losses. We also found that the insurers intend to understate reserves in the soft market. There are no significant interaction effects between underwriting cycle and earning management. Our findings give some meaningful suggestions to insurers and regulators.
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