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Recommendations for Improving Performance in Romanian Insurance Companies Regarding the Risk Management

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  • Diana Miruna Hancu

Abstract

In response to fundamental changes in regulation and technology, the financial industry around the world is undergoing an unprecedented wave of consolidation. From a risk and return standpoint, a strategy that is benchmark-unaware may be more successful than one that is designed to control portfolio risk versus a cap-weighted benchmark. The paper investigates the ALM model as well as its benefits and suggestions for the insurers. Employing a quantitative, low turnover approach to a portfolio of stocks selected for their low beta can lead to a more predictable return stream over time with lower overall volatility and less sensitivity to market movements.

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  • Diana Miruna Hancu, 2014. "Recommendations for Improving Performance in Romanian Insurance Companies Regarding the Risk Management," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(4), pages 33-38, December.
    • Handle: RePEc:khe:journl:v:6:y:2014:i:4:p:33-38
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    References listed on IDEAS

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    1. Bates, David S., 2003. "Empirical option pricing: a retrospection," Journal of Econometrics, Elsevier, vol. 116(1-2), pages 387-404.
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