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@article{ART001365741},
author={Kim, Hunsoo and 권욱진},
title={An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2009},
volume={20},
number={2},
pages={191-228}

TY - JOUR
AU - Kim, Hunsoo
AU - 권욱진
TI - An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -
JO - Journal of Insurance and Finance
PY - 2009
VL - 20
IS - 2
PB - Korea Insurance Research Institute
SP - 191
EP - 228
SN - 2384-3209
AB - This paper examines financial, managerial and market factors that insurance companies and regulators use to reach a decision of business continuance, merger/acquisition, or voluntary or involuntary liquidation of the entire business (i.e., a complete exit from the market). For this, we describe exit regulation in the insurance market and the importance of it on insurer operation s. We then use the A.M. Best database of the U.S. property-liability insurance industry for 1999-2004 (for t-1) and a multinomial logit regression approach to empirically estimate the impact of financial (profitability, underwriting performance, liquidity, capital adequacy and capital measurement), managerial and political environments on the market stay/exit decision making process. The results show that asset size is not only positively related to the probability of business continuance but also likely leads insurers to choose voluntary liquidation or merger instead of involuntary liquidation when they have decided to leave the market. Profitability and capital adequacy also affect market exit decisions. Underwriting performance seems to affect the decisions but not necessarily consistently across the market stay/exit choices.
KW - involuntary liquidation;market exit;multinomial logit regression;property-liability insurance;voluntary liquidation
DO -
UR -
ER -

Kim, Hunsoo and 권욱진. (2009). An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -. Journal of Insurance and Finance, 20(2), 191-228.

Kim, Hunsoo and 권욱진. 2009, "An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -", Journal of Insurance and Finance, vol.20, no.2 pp.191-228.

Kim, Hunsoo, 권욱진 "An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -" Journal of Insurance and Finance 20.2 pp.191-228 (2009) : 191.

Kim, Hunsoo, 권욱진. An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -. 2009; 20(2), 191-228.

Kim, Hunsoo and 권욱진. "An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -" Journal of Insurance and Finance 20, no.2 (2009) : 191-228.

Kim, Hunsoo; 권욱진. An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -. Journal of Insurance and Finance, 20(2), 191-228.

Kim, Hunsoo; 권욱진. An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -. Journal of Insurance and Finance. 2009; 20(2) 191-228.

Kim, Hunsoo, 권욱진. An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -. 2009; 20(2), 191-228.

Kim, Hunsoo and 권욱진. "An Analysis of Market Exit Forms and Decision Factors - A Case of the U.S. Property-Liability Insurance Market -" Journal of Insurance and Finance 20, no.2 (2009) : 191-228.