Data from National Chengchi University Provide New Insights into Investment (Risk-sharing Function In Internal Capital Markets: Evidence From Intragroup Reinsurance Activities): Investment

NewsRx Policy and Law Daily

2023 JUN 13 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New research on Investment is the subject of a report. According to news originating from Taipei, Taiwan, by NewsRx correspondents, research stated, “This study explicitly investigates the risk-sharing function of internal capital markets by analyzing intragroup reinsurance (a substitute for capital) activities in the United States’ non-life insurance sector. We find supporting evidence that intragroup reinsurance participants are generally associated with smoother income flows, and such an income smoothing effect exists for both ceding and assuming firms.”

Financial support for this research came from Ministry of Science and Technology, China.

Our news journalists obtained a quote from the research from National Chengchi University, “Further to prior studies, we find that internal reinsurance ceded exerts both direct and indirect effects on premiums growth in the aftermath of the financial crisis in 2007 and 2008. In addition to direct capacity support, the reduction in income volatility is another channel through which intragroup reinsurance enhances ceding firms’ premiums growth.”

According to the news editors, the research concluded: “In the presence of market turmoil, the risk-sharing function can lower member firms’ insolvency risk and thus enable them to pursue business growth.”

This research has been peer-reviewed.

For more information on this research see: Risk-sharing Function In Internal Capital Markets: Evidence From Intragroup Reinsurance Activities. International Review of Financial Analysis, 2023;87. International Review of Financial Analysis can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; International Review of Financial Analysis - http://www.journals.elsevier.com/international-review-of-financial-analysis/)

The news correspondents report that additional information may be obtained from Yung -Ming Shiu, National Chengchi University, College of Commerce, Dept Risk Management & Insurance, 64, Sec 2, Zhi-Nan Rd, Taipei 11605, Taiwan.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.irfa.2023.102634. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)