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Investigating Risk Disclosure Practices in the European Insurance Industry

Author

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  • Dirk Höring

    (School of Business and Economics, Humboldt-Universit&aauml;t zu Berlin, Dr Wolfgang Schieren Chair for Insurance and Risk Management, Spandauer Str. 1, 10999 Berlin, Germany)

  • Helmut Gründl

    (Faculty of Economics and Business Administration, Chair of Insurance and Regulation, International Center for Insurance Regulation, Goethe-Universit&aauml;t Frankfurt am Main, Grüneburgplatz 1, 60323 Frankfurt am Main, Germany.)

Abstract

In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper explores the risk disclosure practices in annual reports of European primary insurers in the Dow Jones Stoxx 600 Insurance Index between 2005 and 2009. On the basis of a self-constructed risk disclosure index, the study examines the relation between the extent of risk disclosure and insurance companies’ characteristics such as size, risk, profitability, ownership dispersion, cross-listing, home country and type of insurance sold, to draw inferences regarding motives for enhanced risk disclosure based on positive accounting theory.

Suggested Citation

  • Dirk Höring & Helmut Gründl, 2011. "Investigating Risk Disclosure Practices in the European Insurance Industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(3), pages 380-413, July.
    • Handle: RePEc:pal:gpprii:v:36:y:2011:i:3:p:380-413
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    1. repec:hum:wpaper:sfb649dp2015-017 is not listed on IDEAS
    2. Gaganis, Chrysovalantis & Liu, Liuling & Pasiouras, Fotios, 2015. "Regulations, profitability, and risk-adjusted returns of European insurers: An empirical investigation," Journal of Financial Stability, Elsevier, vol. 18(C), pages 55-77.
    3. Gałkiewicz, Dominika Paula, 2015. "Loss potential and disclosures related to credit derivatives: A cross-country comparison of corporate bond funds under U.S. and German regulation," SFB 649 Discussion Papers 2015-017, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.

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