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Social Inflation
Social Inflation
상세정보
- 자료유형
- 학위논문 서양
- 최종처리일시
- 20250211151120
- ISBN
- 9798382775265
- DDC
- 658
- 저자명
- Oh, Sangmin.
- 서명/저자
- Social Inflation
- 발행사항
- [Sl] : The University of Chicago, 2024
- 발행사항
- Ann Arbor : ProQuest Dissertations & Theses, 2024
- 형태사항
- 161 p
- 주기사항
- Source: Dissertations Abstracts International, Volume: 85-12, Section: A.
- 주기사항
- Advisor: Koijen, Ralph.
- 학위논문주기
- Thesis (Ph.D.)--The University of Chicago, 2024.
- 초록/해제
- 요약I study the pricing of a novel source of aggregate risk to the insurance sector: shifts in insurers' loss distribution due to extreme jury verdicts and settlements, widely referred to as "social inflation" by insurers and regulators. A hedonic model shows that jury verdicts for accidents with identical characteristics have increased persistently since 2015, which insurers attribute to evolving social norms and legal tactics. Insurers face not only higher expected losses but also heightened uncertainty, due to both higher loss variability and uncertainty about loss distribution parameters. I then study the insurers' price response to social inflation, focusing on the auto insurance market. Leveraging within insurer-year variation across product lines and across geography, I find that social inflation accounts for nearly two thirds of the annual price increase since 2018. A model shows that this large price response includes a risk compensation due to the interaction of financial frictions with uncertainty in the loss distribution. Consistent with risk compensation in insurers' price response, I find (i) bigger hikes for more constrained insurers, (ii) higher insurer profitability, and (iii) increased risk margin in loss reserves. Overall, my findings highlight how changing social norms and legal developments translate into a source of aggregate risk for the insurance sector. Uncertainty induced by the shifting loss distribution is priced by insurers, a finding that is relevant to emerging risks such as climate and cyber.
- 일반주제명
- Finance
- 일반주제명
- Sociology
- 키워드
- Jury verdicts
- 키워드
- Social inflation
- 키워드
- Social norms
- 키워드
- Insurance sector
- 기타저자
- The University of Chicago Business and Economics
- 기본자료저록
- Dissertations Abstracts International. 85-12A.
- 전자적 위치 및 접속
- 로그인 후 원문을 볼 수 있습니다.
MARC
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■00520250211151120
■006m o d
■007cr#unu||||||||
■020 ▼a9798382775265
■035 ▼a(MiAaPQ)AAI31146129
■040 ▼aMiAaPQ▼cMiAaPQ
■0820 ▼a658
■1001 ▼aOh, Sangmin.
■24510▼aSocial Inflation
■260 ▼a[Sl]▼bThe University of Chicago▼c2024
■260 1▼aAnn Arbor▼bProQuest Dissertations & Theses▼c2024
■300 ▼a161 p
■500 ▼aSource: Dissertations Abstracts International, Volume: 85-12, Section: A.
■500 ▼aAdvisor: Koijen, Ralph.
■5021 ▼aThesis (Ph.D.)--The University of Chicago, 2024.
■520 ▼aI study the pricing of a novel source of aggregate risk to the insurance sector: shifts in insurers' loss distribution due to extreme jury verdicts and settlements, widely referred to as "social inflation" by insurers and regulators. A hedonic model shows that jury verdicts for accidents with identical characteristics have increased persistently since 2015, which insurers attribute to evolving social norms and legal tactics. Insurers face not only higher expected losses but also heightened uncertainty, due to both higher loss variability and uncertainty about loss distribution parameters. I then study the insurers' price response to social inflation, focusing on the auto insurance market. Leveraging within insurer-year variation across product lines and across geography, I find that social inflation accounts for nearly two thirds of the annual price increase since 2018. A model shows that this large price response includes a risk compensation due to the interaction of financial frictions with uncertainty in the loss distribution. Consistent with risk compensation in insurers' price response, I find (i) bigger hikes for more constrained insurers, (ii) higher insurer profitability, and (iii) increased risk margin in loss reserves. Overall, my findings highlight how changing social norms and legal developments translate into a source of aggregate risk for the insurance sector. Uncertainty induced by the shifting loss distribution is priced by insurers, a finding that is relevant to emerging risks such as climate and cyber.
■590 ▼aSchool code: 0330.
■650 4▼aFinance
■650 4▼aSociology
■653 ▼aFinancial frictions
■653 ▼aJury verdicts
■653 ▼aLiability insurance
■653 ▼aSocial inflation
■653 ▼aSocial norms
■653 ▼aInsurance sector
■690 ▼a0508
■690 ▼a0626
■690 ▼a0770
■71020▼aThe University of Chicago▼bBusiness and Economics.
■7730 ▼tDissertations Abstracts International▼g85-12A.
■790 ▼a0330
■791 ▼aPh.D.
■792 ▼a2024
■793 ▼aEnglish
■85640▼uhttp://www.riss.kr/pdu/ddodLink.do?id=T17160807▼nKERIS▼z이 자료의 원문은 한국교육학술정보원에서 제공합니다.
