Assessing the Risks of Insuring Reputation Risk

Journal article
(Original article)


Publication Details

Author(s): Gatzert N, Schmit J, Kolb A
Journal: Journal of Risk and Insurance
Publisher: Wiley-Blackwell
Publication year: 2015
ISSN: 0022-4367
Language: English


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.



FAU Authors / FAU Editors

Gatzert, Nadine Prof. Dr.
Lehrstuhl für Versicherungswirtschaft und Risikomanagement
Kolb, Andreas
Lehrstuhl für Versicherungswirtschaft und Risikomanagement


External institutions with authors

University of Wisconsin - Madison


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).

BibTeX: 

Last updated on 2018-11-08 at 01:40