The Impact of RBC on the Captial and Risk in the Property-Liability Insurance Industry

• Main Authors: Peng, Yu-Ting, 彭郁婷
• Other Authors: Chengh-Sien Tsai
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/47612183614147591104

碩士 === 國立政治大學 === 風險管理與保險研究所 === 91 === This paper examines the simultaneous impact of the RBC regulation on property-liability insurers’ capital ratios and risk including asset risk and product risk. We use a two stage least squares (2SLS) model to analyze the relationship between property-liability insurers’ capitals, risk and RBC ratios. The results suggest that insurers with low RBC ratios increase their capital ratios and decrease their risks, while insurers with high RBC ratios have different risk-taking behavior. This is affected by the insurers’ sizes. Small insurers with high RBC ratios increase capital and decrease risk to enlarge capacity and to prevent any catastrophe happening in the future. Large insurers with high RBC ratios decrease capital and increase risk to avoid management inefficiency.