 Impacts of Deregulation on Property and Casualty Insurers' Pricing and Risk Taking: Empirical Evidence in JapanYukihiro Yasuda and 行宏 安田 No G-1-10, Working Paper Series from Hitotsubashi University Center for Financial Research Abstract: The purpose of this paper is to examine empirically the effects of rate-deregulation on Japanese Property and Casualty (P/C) insurers' pricing and risk-taking behaviors. As long as we know, there is little empirical evidence of the determinants of risk-taking at P/C insurance companies in Japan. Applying the basic ideas from the field of banking, we investigate the factors affecting risk-taking at P/C insurance companies. We find that the price setting at Japanese P/C insurers are decreased after the deregulation. In contrast, we find the risk levels of Japanese P/C insurers are generally increased after the rate-deregulation. However, franchise value that is measured by simple Q contributes adversely to P/C insurer risk-taking only before the deregulation. Lastly, we find that P/C insurers that belong to keiretsu groups have reduced the insurer rates but increased risk taking after the deregulation. In this sense, the impacts of deregulation are higher for P/C insurance companies that belong to the Keiretsu groups. Keywords: Japanese P/C insurers; Rate-deregulation; Risk Taking; Franchise Value; Keiretsu affliation. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hit:hcfrwp:g-1-10 Access Statistics for this paper More papers in Working Paper Series from Hitotsubashi University Center for Financial Research Contact information at EDIRC. |
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