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美國產險業
CEO
更迭與再保險需求
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reinsurance ratio from affiliated reinsurers and from non-affiliated reinsurers.
28
Changes in
two year loss development is positively and significantly related to changes in total
reinsurace ratio and reinsurance ratio from affiliated reinsurers
29
, but negatively and
significantly related to changes in reinsurance ratio from non-affiliated reinsurers. The
change in percentage of long-tail lines to total written premiums is positively related to
changes in total reinsurance ratio and reinsurance ratio from affiliated reinsurers. This result
is consistent with those of previous studies (e.g., Garven and Lamm-Tennant, 2003; Garven
et al., 2014) that show a positive relation between reinsurance demand and percentage of line
of long-tail business. The change in coastal premium variable is negatively related to change
in total reinsurance ratio and affiliated reinsurance ratio, implying insurers with higher
percentage of coastal premium tend to have lower reinsurance from affiliated reinsurers to
reduce insolvency risk.
30
Tax shield is not significantly related to demand for reinsurance.
This result is consistent with the findings of Garven and Lamm-Tennant (2003). ROA is
positively and weakly significantly related to change in reinsurance ratio from non-affiliated
reinsurers, suggesting that an insurer with increasing benefit tends to increase reinsurance
from non-affiliated reinsurers. Finally, group is not significantly related to reinsurance
demand.
Table 4 shows the results of regression of change in reinsurance demand on insurers
with routine CEO turnover, non-routine CEO turnover vs. insurers without CEO turnover
(reference variable).
31
We find that insurers with non-routine CEO turnover on average
increase their total reinsurance ratio, affiliated reinsurance ratio and non-affiliated
reinsurance ratio than insurers without CEO turnover. This finding indicates that new CEOs
resulting from non-routine CEO turnovers purchase more reinsurance from affiliated
reinsurers and reinsurance from non-affiliated reinsurers than insurers without CEO turnover.
A possible reason is that new CEOs resulting from non-routine CEO turnover tend to have
more conservative strategies and thus increased demand for reinsurance to stabilize earnings
28 The change in underwriting risk is not significantly and positively related to change in reinsurance ratio
or non-affiliated reinsurance, but insignificantly and negatively related to change in reinsurance from
affiliated reinsures when using univariate analysis.
29 This result is consistent with the findings of Cole and McCullough (2006).
30 The change in percentage of coast premium is not significantly and negatively related to change in total
reinsurance ratio and affiliated reinsurance ratio, but is insignificantly and positively related to change in
non-affiliated reinsurance ratio when using univariate analysis.
31 Thanks to reviewer’s valuable suggestion, we consider three CEO turnover types to discuss in all Models
when insurers without CEO turnover are the reference variable.