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Capital Structure and Fair Profits in Property-Liability Insurance

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Book cover Managing the Insolvency Risk of Insurance Companies

Abstract

Financial pricing models are becoming increasingly important in property-liability insurance. These models differ from traditional actuarial models by embedding the pricing decision in a market context so that the resulting prices are economically as well as mathematically consistent. Prices are established so that the return to equity capital of the insurer reflects the economy-wide price of risk.

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Authors
  1. J. David Cummins
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Editor information

Editors and Affiliations

  1. The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, USA

    J. David Cummins

  2. Massachusetts Rating Bureaus, Boston, Massachusetts, USA

    Richard A. Derrig

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© 1991 Springer Science+Business Media New York

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Cummins, J.D. (1991). Capital Structure and Fair Profits in Property-Liability Insurance. In: Cummins, J.D., Derrig, R.A. (eds) Managing the Insolvency Risk of Insurance Companies. Huebner International Series on Risk, Insurance, and Economic Security, vol 12. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3878-9_12

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  • DOI: https://doi.org/10.1007/978-94-011-3878-9_12

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-5726-4

  • Online ISBN: 978-94-011-3878-9

  • eBook Packages: Springer Book Archive

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