The aim of this paper is to empirically study corporate social responsibility management in the insurance industry, which has received increased attention in recent years. For this purpose, we use data from LSEG (former REFINITIV) over a period of 11 years (2010–2020) taking into account companies from the United States, Europe, China, and Japan, and analyze the determinants and the value of corporate social responsibility management. Our results show that larger insurers exhibit significantly better corporate social responsibility management. Moreover, focusing on the recent past we find an indication of the value‐relevance of a holistic corporate social responsibility management. Hence, our findings reveal that it might be economically rational for insurance companies to become more sustainable. Therefore, it might be that the insurance market is able to move towards a more sustainable direction on its own, finally, reducing the importance of regulatory interventions in this regard.
{"title":"Determinants and value of corporate social responsibility management: Empirical evidence from the insurance industry","authors":"Tim Brasch, Christian Eckert","doi":"10.1111/rmir.12285","DOIUrl":"https://doi.org/10.1111/rmir.12285","url":null,"abstract":"The aim of this paper is to empirically study corporate social responsibility management in the insurance industry, which has received increased attention in recent years. For this purpose, we use data from LSEG (former REFINITIV) over a period of 11 years (2010–2020) taking into account companies from the United States, Europe, China, and Japan, and analyze the determinants and the value of corporate social responsibility management. Our results show that larger insurers exhibit significantly better corporate social responsibility management. Moreover, focusing on the recent past we find an indication of the value‐relevance of a holistic corporate social responsibility management. Hence, our findings reveal that it might be economically rational for insurance companies to become more sustainable. Therefore, it might be that the insurance market is able to move towards a more sustainable direction on its own, finally, reducing the importance of regulatory interventions in this regard.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2024-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141921149","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In Australia, building, home contents, and comprehensive car insurance facilitate the accumulation of assets associated with rational, responsible citizenship while promising protection in case of events such as fire, flooding, car accident, or theft. Yet many Australians lack these insurance products, risking exposure to devastating financial losses when disaster strikes. This article compares the findings of online surveys of insured and uninsured Australians and explores the factors driving some to forego insurance coverage. Our findings show that inability to afford premiums is a major driver of noninsurance in Australia, particularly for people with low levels of disposable income and assets, or those living in areas affected by rising disaster risk. Yet the decision to forego insurance is also influenced by attitudes to financial matters. Australians who forego insurance have lower levels of trust in insurance and are less likely to consider themselves under a social obligation to be insured. However, contrary to portrayals of the uninsured as risk‐takers, the decision to forego coverage does not appear to be driven by lesser risk aversion among uninsured Australians relative to those who do purchase building, home contents, and comprehensive car insurance policies.
{"title":"Unaffordable, untrustworthy, or unnecessary? Reasons for foregoing building, home contents, and comprehensive car insurance in disaster‐prone Australia","authors":"E. Bourova, Ian Ramsay, Paul Ali","doi":"10.1111/rmir.12284","DOIUrl":"https://doi.org/10.1111/rmir.12284","url":null,"abstract":"In Australia, building, home contents, and comprehensive car insurance facilitate the accumulation of assets associated with rational, responsible citizenship while promising protection in case of events such as fire, flooding, car accident, or theft. Yet many Australians lack these insurance products, risking exposure to devastating financial losses when disaster strikes. This article compares the findings of online surveys of insured and uninsured Australians and explores the factors driving some to forego insurance coverage. Our findings show that inability to afford premiums is a major driver of noninsurance in Australia, particularly for people with low levels of disposable income and assets, or those living in areas affected by rising disaster risk. Yet the decision to forego insurance is also influenced by attitudes to financial matters. Australians who forego insurance have lower levels of trust in insurance and are less likely to consider themselves under a social obligation to be insured. However, contrary to portrayals of the uninsured as risk‐takers, the decision to forego coverage does not appear to be driven by lesser risk aversion among uninsured Australians relative to those who do purchase building, home contents, and comprehensive car insurance policies.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":1.1,"publicationDate":"2024-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141797719","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Brokers are an under‐studied channel of enrollment in the affordable care act (ACA), having grown to support nearly 80% of active federally facilitated marketplace (FFM) enrollment during the 2024 Open Enrollment Period. Brokers enroll a disproportionately low‐income and new‐to‐market consumer base compared to the core exchange websites, and have contributed to the record‐breaking growth in the ACA Marketplace in recent years. Understanding the role brokers play and the technological and policy changes that have enabled their work may help state‐based marketplaces improve stagnant enrollment growth.
{"title":"The impact of brokers on ACA marketplace growth","authors":"Aleka Gürel","doi":"10.1111/rmir.12280","DOIUrl":"https://doi.org/10.1111/rmir.12280","url":null,"abstract":"Brokers are an under‐studied channel of enrollment in the affordable care act (ACA), having grown to support nearly 80% of active federally facilitated marketplace (FFM) enrollment during the 2024 Open Enrollment Period. Brokers enroll a disproportionately low‐income and new‐to‐market consumer base compared to the core exchange websites, and have contributed to the record‐breaking growth in the ACA Marketplace in recent years. Understanding the role brokers play and the technological and policy changes that have enabled their work may help state‐based marketplaces improve stagnant enrollment growth.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141335991","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction: The ACA marketplace experience","authors":"Patricia Born, John Kaelin","doi":"10.1111/rmir.12282","DOIUrl":"https://doi.org/10.1111/rmir.12282","url":null,"abstract":"","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141338021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study enrollment, medical service utilization, and incurred expenses of individual comprehensive and Medicaid managed care plans in states with or without Medicaid expansion adopted at the Affordable Care Act (ACA) early stage 2014–2016. To make healthcare services more accessible, 27 states expanded Medicaid eligibility to cover nearly‐poor non‐elderly adults who have had incomes between 100% and 138% of federal poverty level in 2014. In non‐expansion states, early enrollees in this income cohort had to choose individual market plans rather than Medicaid. Early enrollees' enrollment choices and their health status have had a great impact on the individual market premiums and Medicaid spending. We examined health insurers' annual regulatory filings with the National Association of Insurance Commissioners for 2013–2016 and found that: First, individual comprehensive insurance enrollment grew much faster in states not expanding Medicaid eligibility. Second, after incorporating early enrollees, per member per month (PMPM) medical service utilization and expenses of individual comprehensive insurance grew much faster in non‐expansion states. Third, among major types of medical utilization and expense measures, PMPM hospital inpatient days and PMPM prescription drug expenses increased substantially since 2014. Finally, Medicaid beneficiaries generated more PMPM medical utilization and expenses in expansion states.
{"title":"Medical care services interplay between individual and Medicaid managed care markets in expansion versus non‐expansion states","authors":"Bo Shi, Etti G. Baranoff, T. Sager","doi":"10.1111/rmir.12278","DOIUrl":"https://doi.org/10.1111/rmir.12278","url":null,"abstract":"We study enrollment, medical service utilization, and incurred expenses of individual comprehensive and Medicaid managed care plans in states with or without Medicaid expansion adopted at the Affordable Care Act (ACA) early stage 2014–2016. To make healthcare services more accessible, 27 states expanded Medicaid eligibility to cover nearly‐poor non‐elderly adults who have had incomes between 100% and 138% of federal poverty level in 2014. In non‐expansion states, early enrollees in this income cohort had to choose individual market plans rather than Medicaid. Early enrollees' enrollment choices and their health status have had a great impact on the individual market premiums and Medicaid spending. We examined health insurers' annual regulatory filings with the National Association of Insurance Commissioners for 2013–2016 and found that: First, individual comprehensive insurance enrollment grew much faster in states not expanding Medicaid eligibility. Second, after incorporating early enrollees, per member per month (PMPM) medical service utilization and expenses of individual comprehensive insurance grew much faster in non‐expansion states. Third, among major types of medical utilization and expense measures, PMPM hospital inpatient days and PMPM prescription drug expenses increased substantially since 2014. Finally, Medicaid beneficiaries generated more PMPM medical utilization and expenses in expansion states.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141103848","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We use the smooth ambiguity model to show that ambiguity aversion increases the value of and demand for genetic information for low prior beliefs of carrying a genetic mutation. We also examine an extension based on the ex ante uncertainty of the test results. The extended model, which accommodates ambiguity aversion only in the presence of new information, lowers the value of genetic information and leads to information avoidance. If this behavior is sufficiently strong, it could explain the low demand observed for genetic tests.
{"title":"Value and demand for genetic information and ambiguity aversion revisited","authors":"Stefan Felder, Dilek Sevim","doi":"10.1111/rmir.12277","DOIUrl":"https://doi.org/10.1111/rmir.12277","url":null,"abstract":"We use the smooth ambiguity model to show that ambiguity aversion increases the value of and demand for genetic information for low prior beliefs of carrying a genetic mutation. We also examine an extension based on the ex ante uncertainty of the test results. The extended model, which accommodates ambiguity aversion only in the presence of new information, lowers the value of genetic information and leads to information avoidance. If this behavior is sufficiently strong, it could explain the low demand observed for genetic tests.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141110426","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper empirically analyzes sustainability‐related disclosures of listed European banks and insurance companies by focusing on transition risks, physical risks as well as stranded assets as a possible consequence of transition and physical risks. We employ a text mining analysis and apply a comprehensive keyword catalog to 142 firms. The dataset used for the analysis comprises 852 annual and 551 sustainability reports, covering a sample period from 2017 to 2022. Our results show that disclosure on climate‐related risks considerably increases over the examined period, but that reporting on stranded assets is still in early stages. Moreover, European insurers report more on climate‐related risks relative to the number of analyzed tokens than banks. Finally, statistical evidence suggests that larger banks and insurers with above‐median market capitalization exhibit significantly more word hits on climate‐related risks as compared to smaller firms.
{"title":"A text mining analysis of European banks' and insurers' disclosures on climate‐related risks","authors":"Anna Kraus","doi":"10.1111/rmir.12268","DOIUrl":"https://doi.org/10.1111/rmir.12268","url":null,"abstract":"This paper empirically analyzes sustainability‐related disclosures of listed European banks and insurance companies by focusing on transition risks, physical risks as well as stranded assets as a possible consequence of transition and physical risks. We employ a text mining analysis and apply a comprehensive keyword catalog to 142 firms. The dataset used for the analysis comprises 852 annual and 551 sustainability reports, covering a sample period from 2017 to 2022. Our results show that disclosure on climate‐related risks considerably increases over the examined period, but that reporting on stranded assets is still in early stages. Moreover, European insurers report more on climate‐related risks relative to the number of analyzed tokens than banks. Finally, statistical evidence suggests that larger banks and insurers with above‐median market capitalization exhibit significantly more word hits on climate‐related risks as compared to smaller firms.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140992126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study, I estimate the heterogeneity in the crowd‐out of private health insurance by risk aversion with the Medicaid expansion under the Affordable Care Act. Using data from the Health and Retirement Study, I find that the Medicaid expansion led to a decrease in private coverage among risk‐loving individuals by 5 percentage points. However, the expansion did not lead to any meaningful change in private coverage for risk‐averse individuals. This finding suggests that risk‐averse individuals are willing to keep their private coverage, even though they become eligible for Medicaid. This potentially signals a sorting effect into private insurance. Under the assumption that highly risk‐averse individuals typically display superior health conditions, this preferential behavior could signify a form of advantageous selection into private insurance. Furthermore, the expansion increased Medicaid coverage by 3.4 percentage points for risk‐loving individuals, while not causing any discernible change in coverage among risk‐averse individuals. Such differential responses could potentially influence the risk composition of Medicaid coverage, and subsequently impact the cumulative expenditure associated with it.
在本研究中，我估算了《平价医疗法案》扩大医疗补助计划后，风险规避对私人医疗保险挤出的异质性。利用《健康与退休研究》（Health and Retirement Study）的数据，我发现《医疗补助计划》（Medicaid）的扩大导致风险偏好者的私人保险减少了 5 个百分点。然而，对于规避风险的个人来说，医疗补助的扩大并没有导致私人保险发生任何有意义的变化。这一发现表明，规避风险的个人愿意保留他们的私人保险，即使他们有资格获得《医疗补助计划》。这可能预示着私人保险的分类效应。根据高风险规避者通常表现出优越的健康状况这一假设，这种偏好行为可能意味着对私人保险的一种有利选择。此外，医疗补助计划的扩大使风险偏好者的覆盖率提高了 3.4 个百分点，而风险规避者的覆盖率却没有明显变化。这种不同的反应可能会影响《医疗补助计划》的风险构成，进而影响与之相关的累计支出。
{"title":"Heterogeneity in crowd‐out by risk aversion: Assessing the effect of the ACA Medicaid expansion","authors":"Sezen O. Onal","doi":"10.1111/rmir.12267","DOIUrl":"https://doi.org/10.1111/rmir.12267","url":null,"abstract":"In this study, I estimate the heterogeneity in the crowd‐out of private health insurance by risk aversion with the Medicaid expansion under the Affordable Care Act. Using data from the Health and Retirement Study, I find that the Medicaid expansion led to a decrease in private coverage among risk‐loving individuals by 5 percentage points. However, the expansion did not lead to any meaningful change in private coverage for risk‐averse individuals. This finding suggests that risk‐averse individuals are willing to keep their private coverage, even though they become eligible for Medicaid. This potentially signals a sorting effect into private insurance. Under the assumption that highly risk‐averse individuals typically display superior health conditions, this preferential behavior could signify a form of advantageous selection into private insurance. Furthermore, the expansion increased Medicaid coverage by 3.4 percentage points for risk‐loving individuals, while not causing any discernible change in coverage among risk‐averse individuals. Such differential responses could potentially influence the risk composition of Medicaid coverage, and subsequently impact the cumulative expenditure associated with it.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141006415","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research explores the presence of ex post moral hazard in auto insurance claim filing decisions by determining the relationship between attitudes toward fraudulent behavior and the decisions by those injured in auto accidents to file bodily injury auto insurance claims. Of particular interest is the effect of these attitudes on the propensity to file first‐party bodily injury auto insurance claims, which has not been specifically identified in earlier studies. A multinomial logistic regression model is used to take advantage of survey data that directly capture the first‐ and third‐party auto insurance claim filing decisions for bodily injuries suffered in auto accidents across the United States between 1995 and 1998. The results indicate that, in addition to third‐party claims, ex post moral hazard is present in first‐party bodily injury auto insurance claim filing decisions as well despite possible differences in the incentives to commit first‐party and third‐party insurance fraud.
{"title":"Attitudes toward fraudulent behavior and the decision to file first‐party and third‐party bodily injury auto insurance claims","authors":"Dana A. Kerr","doi":"10.1111/rmir.12266","DOIUrl":"https://doi.org/10.1111/rmir.12266","url":null,"abstract":"This research explores the presence of ex post moral hazard in auto insurance claim filing decisions by determining the relationship between attitudes toward fraudulent behavior and the decisions by those injured in auto accidents to file bodily injury auto insurance claims. Of particular interest is the effect of these attitudes on the propensity to file first‐party bodily injury auto insurance claims, which has not been specifically identified in earlier studies. A multinomial logistic regression model is used to take advantage of survey data that directly capture the first‐ and third‐party auto insurance claim filing decisions for bodily injuries suffered in auto accidents across the United States between 1995 and 1998. The results indicate that, in addition to third‐party claims, ex post moral hazard is present in first‐party bodily injury auto insurance claim filing decisions as well despite possible differences in the incentives to commit first‐party and third‐party insurance fraud.","PeriodicalId":35338,"journal":{"name":"Risk Management and Insurance Review","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140682718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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