Academics research on Associate In Surplus Lines Insurance (ASLI)

• The determinants of banking crises in developing and developed countries, Demirg-Kunt, A., & Detragiache, E. (1998). The determinants of banking crises in developing and developed countries.Staff Papers,45(1), 81-109. The paper studies the factors associated with the emergence of systemic banking crises in a large sample of developed and developing countries in 1980-94 using a multivariate logit econometric model. The results suggest that crises tend to erupt when the macroeconomic environment is weak, particularly when growth is low and inflation is high. Also, high real interest rates are clearly associated with systemic banking sector problems, and there is some evidence that vulnerability to balance of payments crises has played a role. Countries with an explicit deposit insurance scheme were particularly at risk, as were countries with weak law enforcement. 
• Optimistic reporting in the property-casualtyinsuranceindustry, Petroni, K. R. (1992). Optimistic reporting in the property-casualty insurance industry.Journal of Accounting and Economics,15(4), 485-508. This paper examines the response of managers of property-casualty insures to the differential costs and benefits of understanding the liability for outstanding claim losses. The primary hypothesis is that the incentive to underestimate the liability is a decreasing function of the insurer's actual financial position. Empirical tests suggest that managers of financially weak insurers bias downward their estimates of claim loss reserves relative to other insurers after controlling for exogenous economic factors. Evidence also reveals that managers of insurers close to receiving regulatory attention understate reserve estimates to an even larger degree. 
• Ownership structure acrosslinesof property-casualtyinsurance, Mayers, D., & Smith Jr, C. W. (1988). Ownership structure across lines of property-casualty insurance.The Journal of Law and Economics,31(2), 351-378.
• Informalinsurancearrangements with limited commitment: Theory and evidence from village economies, Ligon, E., Thomas, J. P., & Worrall, T. (2002). Informal insurance arrangements with limited commitment: Theory and evidence from village economies.The Review of Economic Studies,69(1), 209-244. Recent work on consumption allocations in village economies finds that idiosyncratic variation in consumption is systematically related to idiosyncratic variation in income, thus rejecting the hypothesis of full risk-pooling. We attempt to explain these observations by adding limited commitment as an impediment to risk-pooling. We provide a general dynamic model and completely characterise efficient informal insurance arrangements constrained by limited commitment, and test the model using data from three Indian villages. We find that the model can fully explain the dynamic response of consumption to income, but that it fails to explain the distribution of consumption across households. 
• Evaluating solvency versus efficiency performance and different forms of organization and marketing in US propertyliability insurancecompanies, Brockett, P. L., Cooper, W. W., Golden, L. L., Rousseau, J. J., & Wang, Y. (2004). Evaluating solvency versus efficiency performance and different forms of organization and marketing in US propertyliability insurance companies.European Journal of Operational Research,154(2), 492-514. Solvency is a primary concern for regulators of insurance companies, claims paying ability is a primary concern for policyholders, and return on investment is a primary concern for investors. These interests potentially conflict, and the decision-makers for the firm must trade off one concern versus another. Here we examine the efficiency of insurance companies via data envelopment analysis using solvency, claims paying ability, and return on investment as outputs and using a financial intermediary model for the insurance company. The effect of solvency on efficiency is then examined. These efficiency evaluations are further examined to study stock versus mutual form of organizational structure and agency versus direct marketing arrangements, which are examined separately and in combination.