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The Impact of Macroeconomic Factors on Environmental Loss Ratio: Evidence from Taiwanese Insurance Data

Author

Listed:
  • Li-Hua Lai

    (Department of Risk Management and Insurance, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R. O. C.)

  • Ching-Hao Chen

    (Department of Risk Management and Insurance, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R. O. C.)

  • Tung-Cheng Chang

    (Department of Risk Management and Insurance, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan, R. O. C.)

Abstract

Environmental insurance (EI) protections help resolve the firm-industry economic loss problem. However, the loss ratio of EI is positively affected by itself from one period ahead. The positive and negative effects of macroeconomic factor on the loss ratio of EIs are not necessarily consistent, but they are dependent on the effect of the year’s environmental condition. The economic variables affecting the loss ratio of EI are quite inconsistent, so insurance prices and liability reserves should be modified every year. While the investigations are the special properties of our input data of Taiwan, the prescription of this paper could provide cross-references with other countries.

Suggested Citation

  • Li-Hua Lai & Ching-Hao Chen & Tung-Cheng Chang, 2018. "The Impact of Macroeconomic Factors on Environmental Loss Ratio: Evidence from Taiwanese Insurance Data," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-13, September.
    • Handle: RePEc:wsi:rpbfmp:v:21:y:2018:i:03:n:s0219091518500200
    DOI: 10.1142/S0219091518500200
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    References listed on IDEAS

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