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Firm's Demand for Insurance: An Explorative Approach

Krummaker, S. ORCID: 0000-0003-2471-8175 (2019). Firm's Demand for Insurance: An Explorative Approach. Risk Management and Insurance Review, doi: 10.1111/rmir.12128


This paper addresses the question, what influences the insurance demand of companies and examines the influence of managerial risk aversion in this decision process. An explorative research approach based on qualitative data analysis is applied to explore the factors influencing the insurance related decision behavior in organizations. Using interviews and observations of firm’s insurance managers, the results identify interdependencies between factors of insurance demand, such as ownership structure, managerial discretion, volatility of earning, size, services of the insurer and business diversification which allows to propose a framework of contextual factors affecting company’s insurance demand. Within this framework, the data imply managerial risk attitudes as decisive factor in the decision process about insurance demand in companies. This explorative study enriches the existing theories of firms’ insurance demand and addresses feedback from practice into theory.

Publication Type: Article
Additional Information: This is the peer reviewed version of the following article: Krummaker, S. (2019). Firm's Demand for Insurance: An Explorative Approach. Risk Management and Insurance Review, which is published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Publisher Keywords: firm’s insurance demand framework, explorative study, practice-theory gap
Subjects: H Social Sciences > HG Finance
Departments: Bayes Business School > Actuarial Science & Insurance
Text - Accepted Version
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