Abstract
Property/casualty insurers sporadically experience swings of varying magnitude in their underwriting income. Despite the inherent riskiness of its business, the insurer can act to reduce its overall risk. Specifically, it can reduce its exposure to wide fluctuations in economic income by identifying and managing interest rate risk. Indeed, not to consider interest rate risk explicitly is to compound needlessly the volatility of capital and economic surplus, which could threaten solvency and survival.
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© 1994 Springer Science+Business Media New York
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Babbel, D.F., Klock, D.R. (1994). Measuring the Interest Rate Risk of Property/Casualty Insurer Liabilities. In: Gustavson, S.G., Harrington, S.E. (eds) Insurance, Risk Management, and Public Policy. Huebner International Series on Risk, Insurance and Economic Security, vol 18. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1378-6_3
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DOI: https://doi.org/10.1007/978-94-011-1378-6_3
Publisher Name: Springer, Dordrecht
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