Doctor of Philosophy (Ph.D.)
Risk, Insurance, and Healthcare Management; Minor: Finance
Temple University
2002
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Faculty
Faculty
B. Paul Choi, Ph.D.
Professor and Director of Center for Insurance Education
Department/Office
- Finance & International Business
School/College
- School of Business
Biography
Byeongyong "B. Paul" Choi, Ph.D., is a professor at the Howard University School of Business. He joined the Department of Finance, International Business and Insurance in 2002, after serving as Instructor at Temple University, Philadelphia, PA. His primary research areas of interest include: market structure, performance and efficiency, liquidity creation, and international insurance. Choi is also currently serving as director of Center for Insurance Education.
Choi has received a number of awards and distinctions including Chartered Property Casualty Underwriter (CPCU) 2001, best in track award, outstanding research award, and several research grants. Choi has served as Faculty Advisor of Gamma Iota Sigma, Director of Summer Actuarial Program and Instructor of Actuarial Study Program. He is also currently serving as a director of Center for Insurance Education. He is a member of Board of Directors of Academy of Finance and an editorial board member of Risks and Journal of Finance Issues. Choi holds a Ph.D. from Temple University, Philadelphia, PA.
Education & Expertise
Education
Master of Science (M.S.)
Risk Management and Insurance
Georgia State University
1997
Bachelor of Business Administration (B.B.A.)
International Trade; Minor: English
Hankuk University of Foreign Studies
1991
Areas of Expertise
Finance & International Business
Specialty Areas: Corporation Finance, Investments, Financial Management, Financial Markets and Institutions, Risk Management, Insurance
Academics
Academics
Graduate Courses
Finance Principles
Financial Markets and Institutions
Financial Management
Undergraduate Courses
Series 7 Prep Course
Risk and Insurance
Property Liability Insurance
Life and Health Insurance
Risk Management
Accomplishments
Accomplishments
Summer Research Award, Howard University, 2026
Best Conference Paper Award, 2025
Taiwan Risk and Insurance Association Cathay Life, 2025
Casualty Actuarial Society and Society of Actuaries, Joint Committee on Equity and Diversity Grant, 2023, 2024 & 2025
Funded for Summer Actuarial Program
Best in Track Award, Risk Management and Insurance track, Academy of Finance, 2025
Summer Research Award, Howard University, 2024
State Farm Good Neighbor Citizenship Grant, 2023 & 2024
Excellence in Service, School of Business, Howard University, 2023
Summer Research Award, Howard University, 2023
Publications and Presentations
Publications and Presentations
The Relationship between Firm Growth, Ownership Structure and Performance
This study investigates the relationship between firm growth and profitability in the U.S. insurance industry, with a focus on differences between stock and mutual insurers. While both forms address stakeholder incentive conflicts, they differ in ownership structure, capital access, and risk preferences. Mutual insurers, owned by policyholders, prioritize long-term stability and operate with limited financial flexibility. In contrast, stock insurers, driven by shareholder interests, have greater access to capital markets and may pursue riskier strategies to boost profitability. Although prior research on profit persistence (POP) in banking and other industries has explored the role of competition, information asymmetry, and firm-specific factors, limited attention has been given to the insurance sector—particularly regarding ownership structure. This study addresses this gap by examining how financial performance and strategic priorities vary between stock and mutual insurers, offering new insights into the determinants of profitability and growth in the insurance industry.
Mean Reversion of Low and High Stock Returns
Mean Reversion of Low and High Stock Returns
This study investigates mean reversion of low and high stock returns for one- to ten-year periods, using 1,000 random block bootstraps. Regressions of later returns against prior returns of large-cap stocks indicate that high returns generally exhibit more significant mean reversion than low returns. Small-cap stocks display greater mean reversion of high returns for two to four years and low returns for five to ten years. Small-cap stocks show much stronger and more persistent mean reversion in returns than large-cap stocks. Both large- and small-cap stocks, however, provide substantially higher returns following low returns and lower returns following high returns.
The Relationship Between Growth and Profitability
Using a data set of insurers operated in the U.S. property and liability (P-L) insurance market during the sample period, this study examines the interactions between firm growth and profitability. Dynamic panel regressions are conducted to investigate its relationship and other factors in the growth and profit equations. Regression models include firm specific variables and industry cycle variables to control and deliver a better estimation. The results of this study show that past profits have a major impact on future profits, thereby supporting that profits continue to be generated in the P-L insurance sector. The findings are consistent with two additional profit measures. Additionally, this research finds that lagged growth is benefitting present profit, specifically assessed by ROE. The growth model shows a positive association between lagged profit and current growth. This study further demonstrates how quickly smaller-sized businesses expand in this market. Other firm characteristics are identified in the profit and growth models as well.
The Impact of Internal and External Reinsurance on Insurers’ Performance and Price
The Impact of Internal and External Reinsurance on Insurers’ Performance and Price
This study is designed to investigate how the use of reinsurance affects the primary insurers' profitability and pricing on their insurance products.
Advertising, Market Concentration, and Firm Performance on the Distribution System
Advertising, Market Concentration, and Firm Performance on the Distribution System
This paper examines the impact of advertising on the firm performance as measured two profit variables and market structure as measured by market concentrations and the relationship is analyzed by two different distribution systems: independent agency writers vs. direct writers. The empirical testing results show that a positive and non-significant relationship between concentration and advertising for both distribution systems, while a negative and significant relation between market share and advertising is found. These results are consistent with the two distribution systems. This paper, however, finds differences between the two distribution systems in the profit model. A negative and significant relationship is found between advertising and profits for independent agency writers, while there exists no significant relationship for direct writers. So, in this highly competitive market, advertising does not boost profit for independent agency writers.
Liquidity Transformation
Liquidity Transformation: An Examination of U.S. Life Insurers
The purpose of this paper is twofold: first, this paper measures how much liquidity is transformed by the US life insurance industry for the sample period; and Second, this study tests the “risk absorption” hypothesis and “financial fragility-crowding out” hypothesis to identify the impact of capital on liquidity creation in the US life insurance industry. In addition, a regression model is conducted to explore the relationship between liquidity creation and other firm characteristics.
An Empirical Investigation of Market Structure, Efficiency, and Performance in Property-Liability Insurance
This study examines the relationships among market structure and performance in property-liability insurers over the period 1992–1998 using data at the company and group levels. Three specific hypotheses are tested: traditional structure-conduct-performance, relative market power, and efficient structure (ES). The results provide support for the ES hypothesis.
Foreign-Owned Insurer Performance in the U.S. Property-Liability Markets
Foreign-Owned Insurer Performance in the U.S. Property-Liability Markets
Foreign-owned property-liability insurers have increased their market share in the US in the recent decades. They may have achieved this by being more efficient, by undercutting prices to attract away business from their domestic rivals, or both. We investigate return, risk, efficiency and determinants of efficiency performance of these insurers relative to their domestic competitors. We find that these firms are less profitable and less efficient in terms of cost scale and revenue X-efficiencies but more efficient in terms of cost X- and revenue scale efficiencies. Overall, the evidence shows that both of the aforementioned factors have contributed to their growth.
CONFERENCE PRESENTATIONS (partial ist)
“Stock vs. Mutual Insurers: An Empirical Study of Underwriting Performance, Risk Appetite, and Capital Management”, MBAA International, Academy of Finance, Chicago, IL, March 2026
“The Impact of the Female Board Composition: A Case Analysis of U.S. Insurers”, China Conference in Insurance and Risk Management (CCIRM) conference, July 2025
“The Impact of the Female Board Composition: A Case Analysis of U.S. Insurers”,
World Risk and Insurance Economic Congress (WRIEC) 2025 Annual Meeting, Quebec, Canada, August 2025
“The Impact of the Female Board Composition: A Case Analysis of U.S. Insurers”, MBAA International, Academy of Finance, Chicago, IL, April 2025
“The Impact of the Female Board Composition: A Case Analysis of U.S. Insurers”, Washington Business Research Forum, Arlington, VA, March 2025
“Optimization of Reinsurance in the Relationship with Firm Growth and Profitability,” MBAA International, Academy of Finance, Chicago, IL, April 2024
“The Relationship between Firm Growth, Ownership Structure and Performance: An Analysis of U.S. Property-Liability Insurers,” MBAA International, Academy of Finance, Chicago, IL, March 2023
“The Relationship between Growth and Profit: Case for the Insurance Distribution,” solo-author, MBAA International, Academy of Finance, Chicago, IL, March 2022
“The Relationship between Growth and Profit: Case for the Insurance Distribution System”, 2021, Howard University, Brown Bag Seminar
“The Relationship between Growth and Profitability: An Empirical Analysis of US Property and Liability Insurers,” MBAA International, Academy of Finance, Chicago, IL, accepted for presentation, 2020 (conference was canceled due to COVID-19)