Welcome to the ARIA 2021 Annual Meeting Agenda App. You are seeing this in simple view. Click on any session to see Presenters, Discussants and a Session Description. Click on Presenters to find a single presenter and their sessions. If you find an error, please email gphillips@aria.org. Registrants have been added and will continue to be updated until 7/29/21 when registration closes. Zoom links will be shared directly with all participants two days prior to the conference. Please make notifications@sched.com a "safe sender" in your email system. We will be sending messages throughout the conference through this medium.
Kwangmin Jung, POSTECH (Pohang University of Science and Technology); Sangyong Han, Korea Insurance Research Institute
We examine how CEOs’ political orientation can affect risk-taking behavior and performance of U.S. property-liability insurance companies. Using information on political donations by CEOs to measure their political identity, we document a strong relationship between CEOs’ political conservatism and risk-averse behavior in insurers’ decision-making. We find that the more Republican partisan CEO (or more politically conservative) is, the less risks a property-liability insurer tends to take in the capital market and underwriting business. We also provide evidence on firm performance that insurers managed by Republican-oriented CEOs are more likely to achieve better financial profitability. The overall findings lead to the conclusion that property-liability insurers with politically conservative CEOs tend to have lower variability in their asset investments and underwriting business, but are more likely to achieve their corporate value to satisfy their shareholders and policyholders.
