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Ruo Jia
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Jia
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Ruo
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+861062758449
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jiaruopku
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1 - 10 of 11
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PublicationType: journal articleJournal: Journal of Risk and InsuranceVolume: 89Issue: 2
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PublicationGlobalization of Insurance Companies: A Blessing or a Curse?A central debate in international business is whether there is a relationship between internationalisation and firm performance, and if so, what its shape and contingent factors are. We use a sample of European insurance companies to show that industry context and cost efficiency are contingent factors of this relationship. Life insurers, particularly those focusing on cost leadership, exhibit a negative impact of globalisation (G) on firm performance (P). We proxy cost leadership by a novel multidimensional measure of cost efficiency and show that it negatively moderates the G-P relationship in the life insurance industry. In contrast, there is no significant G-P relationship and no cost efficiency moderating effect in the nonlife insurance industry. We attribute these results to the higher liability of foreignness driven by greater distance in the globalisation process and by the greater importance of cost efficiency in life insurance as opposed to nonlife insurance.Type: journal articleJournal: European Journal of International ManagementVolume: 15Issue: 2/3
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PublicationEfficiency and Profitability in the Global Insurance Industry( 2019-10)We examine the relationship between firm efficiency (E) and profitability (P) with a global dataset of over 5000 insurance companies. Consistent with previous studies in banking and insurance, we document a significantly positive correlation between the efficiency measures and profitability measures. Beyond the extant evidence, we find significant industry dependency in the E-P relationship driven by industry idiosyncrasies, whereas efficiency is more critical to the profitability of life insurers than to that of nonlife insurers. We also show that the E-P relationship is nonlinear: the marginal impact of efficiency on profitability decreases as the insurer's efficiency is close to the best practice.Type: journal articleJournal: Pacific-Basin Finance JournalVolume: 57Issue: 101190
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PublicationType: journal articleJournal: International Review of Financial AnalysisVolume: 59
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PublicationHow private sector participation improves retirement preparation: A case from ChinaThis paper shows empirically how private sector participation improves the adequacy and equality of retirement preparation in a three-pillar retirement system. We develop a three-layer replacement rate approach based on the China Health and Retirement Longitudinal Study, a nationwide representative household survey of a mid- and old-age population. Our empirical evidence shows that private sector participation increases the mean (median) replacement rate in 2013 from 35.4% (15.4%) to 69.8% (48.7%). The evidence also suggests that annuitizing home equity is responsible for a large portion of this increase. Surprisingly, private sector participation also mitigates the inequality of retirement preparation between the formal and informal sectors. Our empirical findings emphasize the importance of annuitizable private savings for the retirement income security of the one-fifth of the global population living in a representatively high-growth and rapidly aging economy.Type: journal articleJournal: The Geneva papers on risk and insurance - issues and practice
Scopus© Citations 5 -
PublicationThe Structure of the Global Reinsurance Market: An Analysis of Efficiency, Scale, and ScopeWe estimate economies of scale and scope as well as cost and revenue efficiency to explain the structure of the global reinsurance market, where large reinsurers dominate but both diversified and specialized reinsurers are competitive. The costs and benefits of size and product diversification are particularly relevant to the reinsurance industry, as risk diversification is central to the industry's business model. We find that reinsurers with total assets less than USD 2.9 billion exhibit scale economies, while those with total assets greater than USD 15.5 billion do not. Large reinsurers are characterized by high cost efficiency, while small reinsurers exhibit superior efficiency only when specialized. Large reinsurers also exhibit revenue scope economies when operating both life and nonlife reinsurance. Moreover, the evidence is in line with the efficient structure hypothesis: cost-efficient reinsurers can charge lower prices without sacrificing profitability.Type: journal articleJournal: Journal of Banking and FinanceVolume: 77
Scopus© Citations 16 -
PublicationRecent Research Developments Affecting Nonlife Insurance—The CAS Risk Premium Project 2014 UpdateThis article discusses the main results of the Casualty Actuarial Society Risk Premium Project 2014 update. It reviews the recent research developments in the process of nonlife risk assessment. Of special note, systemic risk continuously attracts a great deal of attention. In the past year, reinsurance studies have increased significantly, driven by progress in optimal reinsurance design and reinsurance asymmetric information. Both topics show the academic reflection of financial crisis in the field of risk and insurance. The evaluation of reserves and the methods mitigating asymmetric information have also received a great deal of attention.Type: journal articleJournal: Risk management and insurance reviewVolume: 20Issue: 1DOI: 10.1111/rmir.12072
Scopus© Citations 1 -
PublicationBetween‐Group Adverse Selection: Evidence From Group Critical Illness InsuranceThis article demonstrates the presence of adverse selection in the group insurance market. Conventional wisdom suggests that group insurance mitigates adverse selection because it minimizes individual choice. We complement this conventional wisdom by analyzing a group insurance scenario in which individual choice is excluded, and we find that group insurance alone is not effective enough to eliminate adverse selection; that is, between‐group adverse selection exists. Between‐group adverse selection, however, disappears over time if the group renews with the same insurer for a certain period. Our results thus indicate that experience rating and underwriting based on information that insurers learn over time are important in addressing adverse selection.Type: journal articleJournal: The journal of risk & insuranceVolume: 84Issue: 2DOI: 10.1111/jori.12097
Scopus© Citations 13 -
PublicationJournal: Geneva Papers on Risk and InsuranceVolume: 47
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PublicationType: case studyJournal: Studie für die Casualty Actuarial Society