Insurance IPOs--A Test of the Underpricing Theories
This paper uses a numerical experiment to observe the behavior of the variance of total losses of an insured group, as the group is continually divided and subdivided. In the tradition of Rothschild and Stiglitz (1976) only loss frequency is analyzed. The results of the experiment suggest that an insurer need only divide a large group of insureds into a relatively small number of subgroups (10–15) to achieve most of the efficiency gains that are available.
Volume (Year): 22 (1999)
Issue (Month): 1 ()
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:22:y:1999:i:1:p:61-77. 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: (James Barrese)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.