Skip to content
Journal article

Firm’s demand for insurance: an explorative approach

What makes companies decide how much insurance to buy, and how much does managers’ own risk aversion shape that decision?

Simone Krummaker · Risk Management and Insurance Review 22(3), 279–301 · 2019

Abstract

Using interviews with and observations of corporate insurance managers, the article explores the factors that influence companies’ demand for insurance. It identifies interdependencies between ownership structure, managerial discretion, earnings volatility, size, insurer services and diversification, and proposes a framework of contextual factors. Managerial risk attitudes emerge as a decisive factor in the decision.

Read the journal article at Risk Management and Insurance Review