Assessing the Risks of Insuring Reputation Risk
Gatzert N, Schmit J, Kolb A (2015)
Publication Language: English
Publication Type: Journal article, Original article
Publication year: 2015
Journal
Publisher: Wiley-Blackwell
DOI: 10.1111/jori.12065
Abstract
Reputation risk is becoming increasingly important, especially with the rapidly growing influence of social media, heightened scrutiny on reputation risk by banking and insurance regulators, and reputation's impact on organizational value. Insurers have responded to this development only recently by offering new reputation risk insurance solutions. The aim of this article is to present the first detailed academic analysis of these new insurance policies, including examination of the risks insurers face in offering such coverage. We also offer a conceptualization of reputation risk in an insurance and risk management context with focus on exposures, perils, and hazards. Our analysis indicates that loss identification and measurement generate the greatest challenges to insurers in providing reputation risk coverage. Lack of experience as well as the complexity of the chain of reputation risk events related to reputation insurance coverage present insurers with significant challenges in making this a viable line of business.
Authors with CRIS profile
Nadine Gatzert
Lehrstuhl für Versicherungswirtschaft und Risikomanagement
Andreas Kolb
Lehrstuhl für Versicherungswirtschaft und Risikomanagement
Related research project(s)
Involved external institutions
United States (USA) (US)How to cite
APA:
Gatzert, N., Schmit, J., & Kolb, A. (2015). Assessing the Risks of Insuring Reputation Risk. Journal of Risk and Insurance. https://dx.doi.org/10.1111/jori.12065
MLA:
Gatzert, Nadine, Joan Schmit, and Andreas Kolb. "Assessing the Risks of Insuring Reputation Risk." Journal of Risk and Insurance (2015).
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