Competing models of organizational form: risk management strategies and underwriting profitability in the Swedish fire insurance market between 1903 and 1939

Michael Adams, Lars Fredrik Andersson, Magnus Lindmark, Elena Veprauskaite

Research output: Contribution to journalArticle

8 Citations (Scopus)
165 Downloads (Pure)

Abstract

Mutual and stock insurers have coexisted and competed against each other in insurance markets for centuries. In this article, we examine the risk management strategies and underwriting profitability of the different organizational forms in Sweden's property fire insurance market between 1903 and 1939. We demonstrate that stock insurers acted as intermediaries between policyholders and reinsurers to operate effectively in the potentially high-risk segments of the fire insurance market. In contrast, nationwide mutual insurers kept larger reserves to balance fluctuations in claims experiences, while local insurance pools relied on social obligation and trust to mobilize capital after adverse fire events.
Original languageEnglish
Pages (from-to)990-1014
Number of pages25
JournalJournal of Economic History
Volume72
Issue number4
DOIs
Publication statusPublished - Dec 2012

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