Loading…
This event has ended. Visit the official site or create your own event on Sched.
Welcome to the 2017 AFS Annual Meeing, being held this year, in conjunction with FPA in Nashville!
View analytic
Sunday, October 1 • 11:30am - 12:20pm
D3b A Dynamic Model of Insurance Markets: Catastrophes, Cycles, and Capacity Constraints

Sign up or log in to save this to your schedule and see who's attending!

In the property-liability insurance market, sharp price increases and large capacity swings follow catastrophic losses. A dynamic model of cash flows for an insurer is constructed to study the existence of underwriting cycle. The model shows that the effect of a one-time catastrophic shock could spread and amplify over time by the dynamic interaction between underwriting and capital structure. It indicates this dynamic interaction can generate the non-cyclical behavior of output changes under a series of catastrophic shocks. The paper also demonstrates that the changes in output markets are large with volatile shock, tight external capital market, and relaxed regulation.

Author(s): Ning Wang

Presenters
avatar for Ning Wang

Ning Wang

Assistant Professor of Finance, University of North Georgia


Sunday October 1, 2017 11:30am - 12:20pm
Mockingbird 3

Attendees (2)