Contagion Effects in the Life Insurance Industry Spring and Summer 1991
Abstract
During the spring and early summer of 1991 the life insurance industry experienced an unprecedented series of major life insurer insolvencies. The objective of this paper is to determine whether or not policyholder panic resulted from these failures. The analysis shows that each of the failed companies which are evaluated had unique financial problems which caused their demise. And through the use of an event study methodology it is concluded that industry‐wide policyholder panic did not occur as a result of the life insurer failures.
Citation
Haley, J.D. and Sigler, K.J. (1996), "Contagion Effects in the Life Insurance Industry Spring and Summer 1991", Managerial Finance, Vol. 22 No. 3, pp. 11-27. https://doi.org/10.1108/eb018551
Publisher
:MCB UP Ltd
Copyright © 1996, MCB UP Limited