We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The impact of climate risk on the asset side and liability side of the insurance industry: evidence from China.
- Authors
Yang, Sitong; Li, Shouwei; Rui, Xue; Zhao, Tianxiang
- Abstract
The impact of climate risk on the insurance industry has attracted the attention of the industry and regulators. Based on data of the insurance industry in 31 provinces in China from 2005 to 2021, we use the fixed effects model to investigate the impact of climate risk on the asset side and liability side of China’s insurance industry. We find the following: First, the rise of climate risk is accompanied by the increase in the auto insurance premium share and the general life insurance premium share on the liability side, and the increase in the current assets ratio, the long-term investments ratio, and the fixed assets ratio on the asset side. Second, premium income and investment returns are two channels for the above impacts. Third, the impacts are greater in regions with catastrophe insurance pilot, lower public climate change concerns, and lower insurance payout ratios. Therefore, China’s insurance industry should optimize climate risk management on the asset and liability sides.
- Publication
Economic Change & Restructuring, 2024, Vol 57, Issue 3, p1
- ISSN
1573-9414
- Publication type
Article
- DOI
10.1007/s10644-024-09700-2