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美國產險業
CEO
更迭與再保險需求
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turnover. One possible explanation for these results is that an insurer with a new CEO
resulting from non-routine (forced) CEO turnover is more likely to have a more conservative
strategy and thus increased demand for reinsurance to stabilize earnings and reduce risk to
protect the job security of new CEO. If insurers suffer huge losses and without sufficient
reinsurance, new CEOs are more likely to be fired than CEOs without turnover.
The evidence shows that the interaction effect between mutual form and CEO turnover
is negatively related to reinsurance demand after CEO turnover. Specifically, mutual insurers
with non-routine (forced) CEO turnover are more likely to purchase less reinsurance from
affiliated reinsurers. Finally, our results also show that insurers with CEO turnover are not
related to reinsurance demand post-SOX. The overall results of this study indicate that CEO
turnovers have a significant impact on the demand for reinsurance.
6. Limitations and Suggestions for Future Research
We believe that possible reasons for CEO replacement include CEO’s corporate policies
and/or governance are unsatisfactory or unappreciated by the board of directors. After the
new CEO is on board, he or she may or may not change corporate policies. Reinsurance or
risk management policy is probably one of the policies that are considered to be changed. In
fact, he or she does not necessarily change reinsurance policy. Moreover, it is actually the
new CEO’s characteristics (e.g., overconfidence and risk aversion) or views of the
reinsurance market (e.g., reinsurance cost, alternative risk transfer instruments) that
primarily determine reinsurance policy. Future research topics can examine the relationship
between new CEO’s characteristics (e.g., overconfidence and risk aversion) or views of the
reinsurance market (e.g., reinsurance cost, alternative risk transfer instruments) that
primarily determine reinsurance policy.
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Finally, changes in reinsurance decisions not only
refer to reinsurance amount/ratio but also the types of reinsurance after CEO turnover. Thus,
a study on types of reinsurance transactions (with limited current data) offers promising
areas for future research.
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33 We thank a reviewer for this valuable comment.
34 We thank a reviewer for this valuable comment.