Data on COVID-19 Discussed by Researchers at University of Iowa (Capital Issuances and Premium Growth In the Property-liability Insurance Industry: Evidence From the Financial Crisis and Covid-19 Recession): Coronavirus – COVID-19

2024 OCT 30 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx COVID-19 Daily -- Current study results on Coronavirus - COVID-19 have been published. According to news originating from Iowa City, Iowa, by NewsRx correspondents, research stated, “The COVID-19-driven stock market crash in early 2020, as well as the recession following the financial crisis, generated sizeable operating losses for property-liability insurance companies. However, property-liability insurers were able to hold their capitalisation levels relatively stable during both recessions, issuing new capital and reducing dividends.”

Our news journalists obtained a quote from the research from the University of Iowa, “We use these two recent recessions to empirically examine the determinants and consequences of capital issuances by property-liability insurance companies. We find that property-liability insurers raise capital to restore depleted levels due to operating losses and to fund business growth, and these determinants do not change during recessions. We further examine whether capitalisation levels constrain insurers’ ability to meet demand during recessions and find no evidence this occurs. We rather find that new capital is associated with premium growth in subsequent time periods.”

According to the news editors, the research concluded: “There seem to be fewer frictions affecting property-liability insurers to recapitalise and accommodate demand compared to other financial services firms.”

This research has been peer-reviewed.

For more information on this research see: Capital Issuances and Premium Growth In the Property-liability Insurance Industry: Evidence From the Financial Crisis and Covid-19 Recession. The Geneva Papers on Risk and Insurance - Issues and Practice, 2024;49(1):1-25. The Geneva Papers on Risk and Insurance - Issues and Practice can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

The news correspondents report that additional information may be obtained from Thomas R. Berry-Stolzle, University of Iowa, Vaughan Inst Risk Management & Insurance, Tippie College of Business, 108 John Pappajohn Business Bldg, Iowa City, IA 52242, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41288-022-00283-5. 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.

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