Thesis (Ph. D.)--University of Hong Kong, 2005. / Title proper from title frame. Also available in printed format.

Prior research on line of business concentration has employed a number of measures, including the often used Hirschman-Herfindahl Index (HHI), which typically does not account for correlation across lines of business. In the first essay of the dissertation, based on the methodology used in modern portfolio theory, I develop a modified version of the HHI that accounts for potential line of business correlation. I test this more refined method using statutory insurance data, and find that the value of the modified HHI differs significantly from the value of the traditional HHI. This shift in concentration is non-linear, and provides greater detail on the diversification decision of firms. I also find that a number of firm characteristics, including size, premium growth, other forms of concentration, and organizational form, significantly affect the difference between the modified and traditional HHI values. Finally, I provide an initial test of the modified HHI using a prior study that employed the traditional HHI. The modified measure alters the results of this study. This dissertaiton has important implications for researchers studying firm concentration related to a variety of firm factors, as well as to insurers considering diversification decisions into independent versus related lines of insurance. Enterprise risk management (ERM) is being implemented more frequently by insurance firms, and regulators and ratings agencies are placing greater emphasis on the effectiveness of firm risk management. The second dissertation essay uses ERM ratings data from Standard and Poor's Ratings Direct combined with the NAIC property and casualty insurance annual statements to identify insurers that do and do not obtain ERM program ratings. I examine which firm characteristics are associated with obtaining an ERM rating, test if ERM rated firms jointly manage firm risk using multiple risk management techniques, and test if ERM rated firms are more resilient to shocks than non rated firms. I find that several firm characteristics are significantly related to an ERM rating, including larger and publicly traded firms. I find that the risk management techniques of ERM rated firms are jointly significant in explaining firm risk, while there is no finding of joint significance for non-ERM rated firms. Finally, I find that firms with an ERM rating experience on average fewer shocks and better performance in the variables that underlie shocks than non-ERM rated firms. I perform ERM tests on a larger sample than most prior research, develop testable hypotheses related to ERM, and provide a structure for future researchers to identify ERM behavior. / A Dissertation submitted to the Department of Risk Management/Insurance, Real Estate, and Legal Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy. / Summer Semester, 2012. / June 27, 2012. / correlation, enterprise, insurance, interrelated, management, risk / Includes bibliographical references. / Kathleen A. McCullough, Professor Directing Dissertation; Pamela Coats, University Representative; Patricia Born, Committee Member; Cassandra R. Cole, Committee Member.

This dissertation provides international and U.S. specific perspective on the far reaching influence of the private health insurance market. The first essay posits that the private health insurance market creates incentives which influence intermediate healthcare infrastructure components which ultimately influence health outcomes. Using panel data from multiple OECD countries, the results of univariate, multivariate, and DEA analyses all provide evidence that the private health insurance market has a positive influence on the relation between healthcare infrastructure components and health outcomes. The second essay examines the hypothesis that private health insurance market operations influences medical malpractice insurance market operations and vice versa. The analysis in the second essay, which utilizes panel data from various sources such as the NAIC, U.S. Census Bureau, and the CDC, indicates that higher levels of private health insurance losses are associated with lower levels of medical malpractice insurance losses. Further, higher levels of medical malpractice insurance losses are associated with lower levels of private health insurance losses. Taken in their entirety, this dissertation contributes to the literature by providing evidence on the influence of health insurance market operations and its interrelatedness with health outcomes, healthcare delivery, and the medical malpractice insurance market. The analysis presented here is also aids policymakers, physicians, insureds, and other health insurance market participants in evaluating the potential consequences of regulations and other factors which influence the private health insurance market. / A Dissertation submitted to the Department of Risk Management/Insurance, Real Estate, and Legal Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy. / Spring Semester, 2013. / March 6, 2013. / Includes bibliographical references. / Patricia H. Born, Professor Co-Directing Dissertation; Cassandra R. Cole, Professor Co-Directing Dissertation; Garry Fournier, University Representative; Randy E. Dumm, Committee Member; Kathleen A. McCullough, Committee Member; Lawrence S. Powell, Committee Member.

This dissertation examines several aspects regarding the claims handling practices of life insurance companies within the U.S. insurance industry. Life insurers have some flexibility as to how they process life insurance claims and which settlement options they make available for the beneficiaries. The decisions and choices made by insurers can increase the possibility that the life insurance company can negate coverage which would be paid to beneficiaries and, if paid, may increase the risk to the beneficiary's life insurance proceeds. The first essay examines insurance claims that are denied or resisted by a life insurance company and investigates whether these claims are evidence of a change in underwriting practices. Specifically, it looks to determine if insurers that deny and resist claims are foregoing the standard practice of underwriting a life insurance contract prior to policy issuance and, instead, are utilizing a post-claim underwriting process, whereby the policy is underwritten after a claim has been submitted. If an insurer post-claim underwrites a life insurance claim, the initial underwriting expenses should be reduced and the post-claim investigation expenses should increase. Based on the U.S. company level data for the period of 2003 through 2010, I provide evidence that the insurers that have lower underwriting expenses and those with higher investigation/claim expenses have a greater number and a greater average dollar value of denied and resisted claims. This reduction in expense in the initial underwriting process, coupled with an increased level of investigation/claim expenses, is a clear indication that these insurers are limiting the underwriting of policies during the application process and prior to policy issuance and are, instead, utilizing the post-claim underwriting process. The second essay focuses on insurance companies' utilization of retained asset accounts as a settlement option. Increased competition from banks and other financial institutions has forced life insurers to find new and innovative ways to obtain and retain capital. Retained asset accounts are a newer form of life insurance settlement option in which the insurer holds death proceeds in its general account until the beneficiaries are ready to withdrawal the funds. While beneficiaries are compensated with interest on the accounts, the funds are subject to the financial risk of the insurer and are only partially covered by state guaranty funds. Given the characteristics of the retained accounts, the primary interest of the essay is to examine whether the interest rate paid to the owners of retained asset accounts is positively correlated to the insurer's level of risk. Results show that those insurers associated with greater financial risk compensate the owners of retained asset accounts through the payment of increased interest payment on the funds held in the account. In addition, larger and more financially stable insurers are more likely to utilize retained asset accounts as a life insurance settlement option. / A Dissertation submitted to the Department of Risk Management/Insurance, Real Estate and Legal Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy. / Spring Semester, 2014. / March 21, 2014. / Capital, Claims, Insurance, Life, Retained, Risk / Includes bibliographical references. / Kathleen A. McCullough, Professor Directing Dissertation; Jeff Paterson, University Representative; Cassandra R. Cole, Committee Member; Charles Nyce, Committee Member.

Call number: LD2668 .T4 1957 M15 / Master of Science

published_or_final_version / abstract / toc / Real Estate and Construction / Doctoral / Doctor of Philosophy