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The impact of natural disasters on insurers’ profitability: Evidence from Property/Casualty Insurance company in United States

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  • Benali, Nadia
  • Feki, Rochdi

Abstract

Natural disasters affect not only families and businesses, but also governments and insurance companies. They cause major losses and encourage insurers to take various measures to stabilize their technical performance. This paper aims to examine the impact of natural disasters on the United States (U.S) Property/Casualty insurance profitability for the 2008–2012 period. The results obtained indicate that volume of capital and premium to surplus ratio have a significant positive impact on profitability. While, loss ratio, unexpected frequency and blockbuster have a negative effect on insures’ profitability.

Suggested Citation

  • Benali, Nadia & Feki, Rochdi, 2017. "The impact of natural disasters on insurers’ profitability: Evidence from Property/Casualty Insurance company in United States," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1394-1400.
    • Handle: RePEc:eee:riibaf:v:42:y:2017:i:c:p:1394-1400
    DOI: 10.1016/j.ribaf.2017.07.078
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    References listed on IDEAS

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    Cited by:

    1. Li, Jie & An, Yahui & Wang, Lidan & Zhang, Yongjie, 2022. "Combating the COVID-19 pandemic: The role of disaster experience," Research in International Business and Finance, Elsevier, vol. 60(C).
    2. Montero, José-María & Naimy, Viviane & Farraj, Nermeen Abi & El Khoury, Rim, 2024. "Natural disasters, stock price volatility in the property-liability insurance market and sustainability: An unexplored link," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    3. Claudia Ceci & Katia Colaneri & Alessandra Cretarola, 2021. "Optimal Reinsurance and Investment under Common Shock Dependence Between Financial and Actuarial Markets," Papers 2105.07524, arXiv.org.
    4. Mei Cai & Wenfei Xiu & Guo Wei, 2021. "Expected loss utility for natural hazards and its application in pricing property insurance products," Environment Systems and Decisions, Springer, vol. 41(3), pages 377-391, September.
    5. Valente, Donatella & Miglietta, Pier Paolo & Porrini, Donatella & Pasimeni, Maria Rita & Zurlini, Giovanni & Petrosillo, Irene, 2019. "A first analysis on the need to integrate ecological aspects into financial insurance," Ecological Modelling, Elsevier, vol. 392(C), pages 117-127.

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