Corporate Management of Highly Dynamic Risks: Evidence from the Demand for Terrorism Insurance in Germany

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Autoren

  • Christian Thomann
  • Razvan Pascalau
  • J. Matthias Graf Von Der Schulenburg

Externe Organisationen

  • Ministry of Finance (Sweden)
  • SUNY Plattsburgh
Forschungs-netzwerk anzeigen

Details

OriginalspracheEnglisch
Seiten (von - bis)57-82
Seitenumfang26
FachzeitschriftGENEVA Risk and Insurance Review
Jahrgang37
Ausgabenummer1
Frühes Online-Datum28 Juni 2011
PublikationsstatusVeröffentlicht - März 2012

Abstract

This paper investigates a corporation's risk management response to highly dynamic risks. Using a unique data set on the German terrorist insurance market, the paper tests whether corporate risk managers have a clear understanding of the probability distribution of highly dynamic risks or if risk managers learn from severe losses and base their decisions upon day-to-day experience. The paper further investigates whether risk managers become more confident in their risk management decisions over time. For this purpose, we apply Viscusi's prospective reference theory to a corporate context. We find that firms learn from single events when making their risk management decisions, and that risk managers become more confident with their risk management decisions over time.

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Corporate Management of Highly Dynamic Risks: Evidence from the Demand for Terrorism Insurance in Germany. / Thomann, Christian; Pascalau, Razvan; Von Der Schulenburg, J. Matthias Graf.
in: GENEVA Risk and Insurance Review, Jahrgang 37, Nr. 1, 03.2012, S. 57-82.

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Thomann C, Pascalau R, Von Der Schulenburg JMG. Corporate Management of Highly Dynamic Risks: Evidence from the Demand for Terrorism Insurance in Germany. GENEVA Risk and Insurance Review. 2012 Mär;37(1):57-82. Epub 2011 Jun 28. doi: 10.1057/grir.2011.3
Thomann, Christian ; Pascalau, Razvan ; Von Der Schulenburg, J. Matthias Graf. / Corporate Management of Highly Dynamic Risks : Evidence from the Demand for Terrorism Insurance in Germany. in: GENEVA Risk and Insurance Review. 2012 ; Jahrgang 37, Nr. 1. S. 57-82.
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