Rate Regulation, Competition, and Loss Reserve Discounting by Property-Casualty Insurers
研究财产意外险公司是否在报告损失准备金时隐含折现，发现折现率显著为正，且受严格费率监管的保险公司折现程度更高，该行为有别于偿付能力和税务动机。
This study examines whether the reported loss reserves of property-casualty insurers contain an implicit discount for the time value of money. Reporting the present value of loss reserves enables insurers to justify the competitive level of insurance premiums to regulators. The evidence indicates that there is a positive and significant discount rate implicit in the relation between reported loss reserves and expected future claim payments. Moreover, insurers subject to relatively stringent rate regulation discount to a greater extent than do other insurers. The results also suggest that implicit discounting is distinct from solvency and tax motives to exercise discretion over the loss reserve.