详情
Insurance Investment Cycles
Property casualty insurance insurers’ investment in risky assets appears to be
cyclical. Insurance investment cycle is correlated with underwriting cycle. Insurers
invest less in stocks in hard markets and more in soft markets. Nevertheless, the
correlation between investment and underwriting cycles exists only for stock
insurers, not for mutual insurers. Furthermore, investments of mutual and stock
insurance firms react differently to capital market indicators reflecting investor
sentiment, such as equity market indices and aggregate newly issued equity.