The Impact of Insurer Name Changes on the Demand for Insurance

Journal of Risk and Insurance, November 2013

Posted: 26 Feb 2014

See all articles by Cassandra R. Cole

Cassandra R. Cole

Florida State University - College of Business

Stephen G. Fier

University of Mississippi - School of Business Administration

James M. Carson

University of Georgia

Demetra Andrews

Independent

Multiple version iconThere are 2 versions of this paper

Date Written: 2013

Abstract

Corporate name changes are relatively common events, with some evidence suggesting that name changes are strategic in nature. Although prior research has examined the effect of name changes on the firm, these studies have focused primarily on the stock price reaction to name changes. Such a focus has a number of limitations, including a reliance on samples that consist solely of publicly traded firms and an inability to determine whether the source of the impact is driven by increases in revenue, increases in efficiency, and/or reductions in costs. We overcome these limitations by testing the impact of corporate name changes on U.S. property-casualty insurers using detailed statutory data. We find a significant and positive relation between name changes and subsequent growth in premiums. The results are robust across various model specifications and suggest that name changes contain information that consumers interpret as meaningfully positive.

Suggested Citation

Cole, Cassandra R. and Fier, Stephen G. and Carson, James M. and Andrews, Demetra, The Impact of Insurer Name Changes on the Demand for Insurance (2013). Journal of Risk and Insurance, November 2013. Available at SSRN: https://ssrn.com/abstract=2401250

Cassandra R. Cole (Contact Author)

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

Stephen G. Fier

University of Mississippi - School of Business Administration ( email )

PO Box 3986
Oxford, MS 38677
United States

James M. Carson

University of Georgia ( email )

Athens, GA 30602-6254
United States

Demetra Andrews

Independent ( email )

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