@techreport{Laux2006Mutual,
abstract = {Mutual insurance companies and stock insurance companies are different forms of organized risk sharing: policyholders and owners are two distinct groups in a stock insurer, while they are one and the same in a mutual. This distinction is relevant to raising capital, selling policies, and sharing risk in the presence of financial distress. Up-front capital is necessary for a stock insurer to offer insurance at a fair premium, but not for a mutual. In the presence of an ownermanager conflict, holding capital is costly. Free-rider and commitment problems limit the degree of capitalization that a stock insurer can obtain. The mutual form, by tying sales of policies to the provision of capital, can overcome these problems at the potential cost of less diversified owners.},
address = {Frankfurt, Main},
author = {Christian Laux and Alexander Muermann},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G22; G32; 330; Ownership Structure; Insurance; Qwner-Manager Conflict; Capital, Default; Versicherung; Privatversicherung; Eigent\"{u}merstruktur; Versicherungspr\"{a}mie; Eigenkapital; Betriebliche Liquidit\"{a}t; Theorie},
language = {eng},
number = {2006/26},
publisher = {Center for Financial Studies},
title = {Mutual versus stock insurers: Fair premium, capital, and solvency},
type = {CFS Working Paper},
url = {http://hdl.handle.net/10419/25492},
year = {2006}
}
