Large-Scale Disasters and the Insurance Industry

Walter Kraemer and Sebastian Schich
Authors registered in the RePEc Author Service: Walter Krämer

No 2243, CESifo Working Paper Series from CESifo

Abstract: We investigate the impact of the 20 largest – in terms of insured losses – man-made or natural disasters on various insurance industry stock indices. We show via an event study that insurance sectors worldwide are quite resilient, in a market–value sense, to unexpected losses to capital: our data provide evidence that equity market investors believe that insurance companies will on average be able to make losses back over the foreseeable future, i.e. that the adverse shocks to equity which have resulted from these catastrophes will be compensated by either an outward shift of the demand curve or an ability to raise premiums, or both.

Keywords: disaster; insurance industry; event-study (search for similar items in EconPapers)
JEL-codes: E44 G14 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Large - scaledisasters and the insurance industry (2005)
Working Paper: Large-scale disasters and the insurance industry (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2243

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