Target Arson: Update 1991. A Study of Selected Old and New Variables

The purpose of this study is to replicate and extend earlier studies on the impact of economic and sociological variables upon the incidence of arson fires and losses. The data used in this study covered the period from 1960 to 1988. Initially, a total of 180 variables classified generally as either economic or sociological were chosen for inclusion in the study. These variables were selected based upon their inclusion in other studies in which arson is investigated or upon literature suggesting that a variable is related to arson. Fourteen variables were found to have a significant relationship with the incidence of arson fires and losses. Implications for various individuals and government agencies are discussed. The number of Incendiary or Suspicious Fires was strongly and positively related to the Loss Ratios sustained on Forgery bonds (data were supplied by the Surety Association of America). This same independent variable appeared in both of the other equations and was the only one that did so. While one might postulate that this relationship indicates situations in which arson was attempted as a cover for the crime of forgery which was detected, it is perhaps wiser to think of it as a proxy for crime

The Determinants of Financial Health of Asian Insurance Companies

Previous studies of financial health of insurance companies are mainly focused on insurers operating in the United States and developed economies. This article focuses on the solvency of general (property-liability) and life insurance companies in Asia using firm data and macro data separately. It uses different classification methods to classify the financial status of both general and life insurance companies. With the exception of Japan, failures of insurers in Singapore, Malaysia, and Taiwan are nonexistent. We find that, first, the factors that significantly affect general insurers' financial health in Asian economies are firm size, investment performance, liquidity ratio, surplus growth, combined ratio, and operating margin. Second, the factors that significantly affect life insurers' financial health are firm size, change in asset mix, investment performance, and change in product mix, but the last three factors are more applicable to Japan. Third, the financial health of insurance companies in Singapore seems to be significantly weakened by the Asian Financial Crisis. As the insurance industry in different Asian economies is at different stages of development, they require different regulatory guidelines. Copyright The Journal of Risk and Insurance.