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Environmental insurance (EI) protections help resolve the firm-industry economic loss problem. However, the loss ratio of EI is positively affected by itself from one period ahead. The positive and negative effects of macroeconomic factor on the loss ratio of EIs are not necessarily consistent, but they are dependent on the effect of the year’s environmental condition. The economic variables affecting the loss ratio of EI are quite inconsistent, so insurance prices and liability reserves should be modified every year. While the investigations are the special properties of our input data of Taiwan, the prescription of this paper could provide cross-references with other countries. [ABSTRACT FROM AUTHOR]