Systemic Risk in the Insurance Sector: Review and Directions for Future Research

Item Type Journal paper
Abstract

This article reviews the extant research on systemic risk in the insurance sector and outlines new areas of research in this field. We summarize and classify 48 theoretical and empirical research papers from both academia and practitioner organizations. The survey reveals that traditional insurance activity in the life, nonlife, and reinsurance sectors neither contributes to systemic risk nor increases insurers’ vulnerability to impairments of the financial system. However, nontraditional activities (e.g., credit default swap underwriting) might increase vulnerability, and life insurers might be more vulnerable than nonlife insurers due to higher leverage. Whether nontraditional activities also contribute to systemic risk is not entirely clear; however, the activities with the potential to contribute to systemic risk include underwriting financial derivatives and providing financial guarantees. This article is not only likely of interest to academics but also highly relevant for the industry, regulators, and policymakers.

Authors Eling, Martin & Pankoke, David Antonius
Journal or Publication Title Risk Management and Insurance Review
Language English
Keywords Systemic Risk; Insurance; Solvency II; Financial Crisis
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
HSG Profile Area SOF - System-wide Risk in the Financial System
Refereed Yes
Date 2016
Publisher Wiley-Blackwell
Series Name WORKING PAPERS ON FINANCE
Volume 19
Number 2
Page Range 249-284
ISSN 1098-1616
Publisher DOI 10.1111/rmir.12062
Depositing User David Antonius Pankoke
Date Deposited 13 Jan 2015 10:43
Last Modified 30 Oct 2018 17:40
URI: https://www.alexandria.unisg.ch/publications/238473

Download

Full text not available from this repository.

Citation

Eling, Martin & Pankoke, David Antonius (2016) Systemic Risk in the Insurance Sector: Review and Directions for Future Research. Risk Management and Insurance Review, 19 (2). 249-284. ISSN 1098-1616

Statistics

https://www.alexandria.unisg.ch/id/eprint/238473
Edit item Edit item
Feedback?