IDEAS home Printed from
   My bibliography  Save this article

The Interplay between Insurers’ Financial and Asset Risks during the Crisis of 2007–2009


  • Etti Baranoff

    (Virginia Commonwealth University, Snead Hall, 301 West Main street, Richmond, VA 23284, U.S)

  • Thomas W Sager

    (Department of Information, Risk, and Operations Management, The University of Texas at Austin, CBA 5.202, Austin, Texas 78712-1175, U.S)


In this study we compare the interplay between capital and asset risks before and during the 2007–2009 financial crisis for the U.S. life and health insurance industries partitioned into segments by product specialisation, size and governance. The results show substantial intra-industry variation in the partial elasticity of capital with respect to asset risk, as well as significant impact of the crisis. Segment variation was driven by product focus. Most notable is the greater impact of the crisis on the U.S. insurers specialising in annuities (least risky product) than on specialists in health lines (riskiest product). During the crisis, the elasticity between asset risk and capital declined for all segments indicating that insurers’ operation may have shifted from offsetting risk to seeking risk.

Suggested Citation

  • Etti Baranoff & Thomas W Sager, 2011. "The Interplay between Insurers’ Financial and Asset Risks during the Crisis of 2007–2009," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(3), pages 348-379, July.
  • Handle: RePEc:pal:gpprii:v:36:y:2011:i:3:p:348-379

    Download full text from publisher

    File URL:
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:36:y:2011:i:3:p:348-379. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.