Insurers' Demutualization Decisions |
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| Authors: | Richard J Butler Yijing Cui rew Whitman |
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| Institution: | Economics at Brigham Young University, Provo, Utah;Industrial Relations Center at the University of Minnesota-Twin Cities;Insurance at the Industrial Relations Center at the University of Minnesota-Twin Cities |
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| Abstract: | ABSTRACT: 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. |
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