University of St.Gallen
research platform alexandria
search publications
browse publications
après Personnes
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 
après Année

The Impact of Introducing Insurance Guaranty Schemes on Pricing and Capital Structure

fulltext etc. no fulltext attached
version abrégée The introduction of an insurance guaranty scheme can have significant influence on the pricing and capital structures in a competitive market. The aim of this paper is to study this effect on competitive equity-premium combinations while considering a framework with policyholders and equity holders where guaranty fund charges are volume-based, as levied in existing schemes. Several settings with regard to the origin of the fund contributions are assessed and the immediate effects on the incentives of the policyholders and equity holders are analyzed through a one-period contingent claim approach. One result is that introducing a guaranty scheme in a market with competitive conditions entails a shift of equity capital towards minimum solvency requirements. Hence adverse incentives may arise with regard to the overall security level of the industry.
   
Genre Journal paper
   
mot-clé
   
langue English
kind of paper journal article
date de sortie de la publication 6-2012
journal The Journal of Risk and Insurance
maison d'édition Wiley-Blackwell (Malden, Mass. USA)
ISSN 0022-4367
ISSN (online) 1539-6975
DOI 10.1111/j.1539-6975.2012.01474.x
émission du journal 80
numéro du journal 2
page(s) 273-308
Review Double-Blind Review
   
profile area SoM - Responsible Corporate Competitiveness (RoCC)
citation Schmeiser, H., & Wagner, J. (2012). The Impact of Introducing Insurance Guaranty Schemes on Pricing and Capital Structure. The Journal of Risk and Insurance, 80(2), 273-308, DOI:10.1111/j.1539-6975.2012.01474.x.