Ownership structures and risk taking in the German property-liability insurance market

This paper investigates whether the organizational form of a property-liability insurer influences its risk-taking. We investigate the investment and underwriting behavior of 62 German property-liability insurers in the period from 2000 to 2019. We find that stock insurers take higher risks, both in underwriting and in investments than mutual insurers. Our findings are relevant to customers, investors, and regulators, as they provide insights into the fundamental differences between stock and mutual insurers in the German property-liability.insurance market.