Browsing by Author "Yu, Hsueh-E"

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Risk management in life insurance companies: Evidence from Taiwan
(2014-07-01)
Hu, Jin-Li
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Yu, Hsueh-E
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交大名義發表
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經營管理研究所
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National Chiao Tung University
The solvency issue of life insurance companies has become more important in recent years as business risks turn increasingly greater. This study examines the relationship among investing risk, underwriting risk, and the capital ratio during the post risk-based capital regulation period of 2004-2009 in Taiwan. In addition to the two-stage least square regression (2SLS), we also adopt the two-stage quantile regression (2SQR) to capture the effects of low capital (or risk) levels and high capital (or risk) levels. 2SLS do not fully explain the capital-risk relation. Contrary to previous evidence reported in the U.S., our findings in 2SQR model indicate that the relationship between capital and underwriting risk is positive, while the relationship between investing risk and capital shows a reverse pattern. Overall, the 2SQR provides stronger evidence than the 2SLS. (C) 2014 Elsevier Inc. All rights reserved.
Risk, Capital, and Operating Efficiency: Evidence from Taiwan's Life Insurance Market
(2015-01-01)
Hu, Jin-Li
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Yu, Hsueh-E
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經營管理研究所
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Institute of Business and Management
In this article, we investigate the relationships among risk, capital, and operating efficiency for Taiwanese life insurance companies from 2004 to 2009 by using the two-stage least-square approach. We find a positive relation between inefficiency and product risk. At the same time, efficient insurers are seen as taking higher asset risk than inefficient insurers. A contrasting finding also shows that the relationship between capital and product risk is positive, while the relationship between capital and asset risk is negative. Moreover, we present a negative relationship between inefficiency and capital level, indicating that well-capitalized insurers operate more efficiently than poorly capitalized insurers.