IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v38y2013i1p1-21.html
   My bibliography  Save this article

Do Japanese Policyholders Care About Insurers’ Credit Quality?

Author

Listed:
  • Sojung Carol Park

    (College of Business Administration, Seoul National University, San 56-1, Shilim-Dong, KWanak-Gu, Seoul, Republic of Korea, 151-916.)

  • Yasuyuki Tokutsune

    (Kansai University, 3-3-35, Yamate-cho, Suita, OSAKA, 564-8680, Japan.)

Abstract

We analyse abnormal growth of premiums surrounding financial strength rating changes for a panel of life insurers in Japan during 2002–2009. Unlike the U.S. market, our regression results indicate that life insurance premiums do not show relevant change in connection with ratings changes in the Japanese market. However, insurance demand is not totally insensitive to the financial strength of insurers. We find that the demand for foreign life insurers has a positive relationship with solvency margin ratio. We also find that consumers cared more about insurers’ credit quality during the later sample period of 2006–2009 than the earlier sample period of 2002–2005.

Suggested Citation

  • Sojung Carol Park & Yasuyuki Tokutsune, 2013. "Do Japanese Policyholders Care About Insurers’ Credit Quality?," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 38(1), pages 1-21, January.
  • Handle: RePEc:pal:gpprii:v:38:y:2013:i:1:p:1-21
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v38/n1/pdf/gpp201232a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v38/n1/full/gpp201232a.html
    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

    Statistics

    Access and download statistics

    Corrections

    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:38:y:2013:i:1:p:1-21. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.