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Insurers' Demutualization Decisions
Author(s) -
Butler Richard J.,
Cui Yijing,
Whitman Andrew
Publication year - 2000
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/j.1540-6296.2000.tb00027.x
Subject(s) - flexibility (engineering) , univariate , business , accounting , actuarial science , capital (architecture) , finance , multivariate statistics , economics , statistics , management , mathematics , archaeology , history
Several explanations of why mutual insurers choose to demutualize their businesses are examined with a recent survey of mutual insurers. This study adds to the literature by surveying mutual insurers' executives on those factors that would lead them to demutualize their companies. Both univariate and multivariate techniques are applied to analyze those responses. Demutualization is most strongly influenced by access to capital markets, increased organizational flexibility, and the chance for company officers to increase their pay, as prior literature has suggested.