Jump to ContentJump to Main Navigation
Acts of God and ManRuminations on Risk and Insurance$
Users without a subscription are not able to see the full content.

Michael Powers

Print publication date: 2014

Print ISBN-13: 9780231153676

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231153676.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 17 January 2022

God-Awful Guessing and Bad Behavior

God-Awful Guessing and Bad Behavior

Solvency and Underwriting

(p.127) 8 God-Awful Guessing and Bad Behavior
Acts of God and Man

Michael R. Powers

Columbia University Press

Insurance companies throughout the world are generally subject to some form of government regulation, and such oversight can have a powerful effect on a company's internal risk management. This chapter provides a brief overview of government regulation of insurance company solvency. It then discusses the most pernicious risks encountered by insurance firms as they build their portfolios of exposures. It sets out both the positive and negative effects when the number of policyholders of an insurance company increases. Positive effects include enhanced stability of the company's financial results through diversification, reduced actuarial pricing error, and reduced classification error. Negative effects include increased classification error; increased information deficiencies; and decline in impact of initial net worth.

Keywords:   insurance companies, insurance industry regulation, government regulation, risk management, solvency, exposure

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .