We examine an insurer’s portfolio allocation choice in the context of a regulatory environment where investment in specific asset classes is constrained. We use a year- and insurer- specific proxy, the Investment Regulatory Stringency Index, to show that property and casualty insurers operating in more stringent regulatory environments allocate a smaller proportion of their investment portfolio to taxable assets. Given the market conditions, the environmental risks, and the economic pressure of the period under study, theory suggests the demand for taxable securities would otherwise be greater. We infer from this result that regulation is restricting investment in taxable assets in an undesirable manner. This result is consistent with prior literature. Lastly, we find that operational risk management can mitigate the investment constraints imposed by regulation.

中文翻译：

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操作风险管理和投资组合分配方面的监管投资约束：财产和伤亡保险公司的证据

我们在特定资产类别的投资受到限制的监管环境下检查保险公司的投资组合分配选择。我们使用特定于年度和保险公司的代理，即“投资监管严格性指数”来表明，在更严格的监管环境中运营的财产和意外伤害保险公司将其投资组合中的一小部分分配给应税资产。考虑到市场条件，环境风险和所研究时期的经济压力，理论认为应税证券的需求将会更大。我们从这个结果可以推断出，监管正在以不受欢迎的方式限制应税资产的投资。该结果与现有文献一致。最后，