Risk Management and Risk Taking of Life Insurance Industry in Taiwan

• Main Authors: Yi-Yun Lin, 林意芸
• Other Authors: Chia-Ling Ho
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/65084300921386079307

碩士 === 淡江大學 === 保險學系保險經營碩士班 === 102 === The numerous financial scandals have highlighted the importance of enterprise risk management. Moreover, these have emphasized the idea that all life insurance companies in Taiwan should follow regulations to establish a risk management committee, chief risk officer (CRO), and risk management department. This study examines the relationship between risk management mechanism and risk taking in Taiwan’s life insurance industry. The study sample comprises 23 Taiwanese life insurance companies from 2006 to 2012. Empirical results show that the establishment of the risk management committee is unrelated to risk taking. The relationship between the appointment of a CRO and risk taking is positively significant. Finally, the establishment of a risk management department is negatively correlated with risk taking. This study also considered the risk management mechanisms of different organizational structures, such as financial holding companies, family groups, and public companies, as well as the impact of risk taking. Financial holding companies and family groups are significantly correlated with the establishment of a risk management department and risk taking. The relationship between the establishment of a risk management committee and appointment of a CRO, and risk taking in public life insurance companies is negatively significant. The age of a company in relation to risk taking is an inverted U-shaped curve in terms of corporate governance variables. Firm size and return on assets are also negatively correlated with risk taking.