Nevertheless, while the Great Fire of London in 1666 has been widely accepted as the starting point of fire insurance, the role that large fires have played in creating the need of insuring for fire risk and the possible implications of this, has, to the best of our knowledge, not yet been systematically examined. [...] More specifically, based on the results of the fire insurance demand analyses and the condition that a large fire was exogenous, we instrument fire insurance by large fires to be able to identify the impact of fire insurance on the number of subsequent unintentional and arson caused small fires. [...] After the enactment of the Insurance Business Law, the number of fire insurance companies stabilized, although the fire insurance business continued to grow, as indicated by the number and the value of fire insurance contracts in force. [...] As shown 7 in Figure 1, in the late 1910s the number of fire insurance companies more than doubled, and the growth of the number and value of fire insurance contracts in force accelerated. [...] The effect on new policies and renewals also persists until t-4, although the estimated coefficient is only significant at the ten 5 The resultant test stascs was 9.77, 10.58, and 9.24 for the number of claims, the number of acve policies, and the number of new and renewed policies, respecvely, and hence we were in all cases unable to reject the null hypothesis of no me varying spaal correlaon.
- Pages
- 36
- Published in
- Japan
