Leverage and reinsurance effects on loss reserves in the United Kingdom’s property–casualty insurance industry
研究了英国财产-意外保险行业中损失准备金误差与杠杆和再保险的关系，发现财务薄弱的保险公司会低估准备金以降低杠杆，而高杠杆时则过度计提；再保险能减少准备金误差，但比例再保险无此效果。
We examine the relation between loss reserving errors, leverage and reinsurance in the UK’s property–casualty insurance industry. We find that financially weak insurers under-estimate reserves to reduce leverage, and so pre-empt costly regulatory scrutiny. However, at very high leverage, insurers over-reserve, suggesting a non-linear relation between leverage and reserving policy. We also investigate whether monitoring by reinsurers reduces reserving errors, and find that highly reinsured insurers are less likely to make loss reserve errors. However, the use of proportional reinsurance does not affect loss reserve accuracy.