Economics at your fingertips  

The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance

Jing Ai, Vickie Bajtelsmit and Tianyang Wang ()

Journal of Risk & Insurance, 2018, vol. 85, issue 2, 513-543

Abstract: In a well†designed enterprise risk management (ERM) program, the firm integrates risk management into the strategic planning process, addressing strategic, financial, operational, and hazard risks under a single overarching process. This is particularly important to large financial firms, such as property and casualty (P&C) insurers, which face a diverse set of risks. Using a sample of P&C insurers with S&P ERM quality ratings from 2006 to 2013, we find that the quality of a firm's ERM is a significant determinant of P&C insurer performance and that, for firms with high†quality ERM programs, product line diversification has a significant positive effect on performance.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Journal of Risk & Insurance is currently edited by Joan T. Schmit

More articles in Journal of Risk & Insurance from The American Risk and Insurance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2023-09-20
Handle: RePEc:bla:jrinsu:v:85:y:2018:i:2:p:513-543