Ferro, Gustavo and Castagnolo, Fermando (2010): Seguros, crisis, regulación y disciplina del mercado.
Download (767kB) | Preview
The insurance industry, in its different business lines, concentrates 11 percent of the World financial assets. As in all the remaining financial activities, it is object of comprehensive regulation of structure, conduct and performance (with diverse emphasis), besides social scrutiny. The objective of the present article is to discern the phenomena behind the recent financial crisis and its impact in the insurance industry, and to contribute to the debate on more/less market and/or scarce/excessive regulation. This paper yields also an empirical approach which consists in examining the character of the market discipline as a substitute or complement of the prudential regulation. The proposals in implementation in the European Union, known as Solvency II, add the regulatory pillars of capitalization, supervision and market discipline. In other places, such as New Zealand, confidence is put on the latter exclusively. The research questions which give structure to the document are: why to regulate insurance markets? How are they regulated around the world? Which were the origins of the crisis, and how did it impact on the insurance market? What is new in the regulatory debate? Did market discipline worked? Did it replace or complement prudential supervision? What did we learn? After a detailed debate on the first four questions, we analyze empirically the existence of market discipline in the insurance markets of Germany, Spain, New Zealand and the United Kingdom. We conclude on the complementary role of market discipline with respect to prudential supervision.
|Item Type:||MPRA Paper|
|Original Title:||Seguros, crisis, regulación y disciplina del mercado|
|English Title:||Insurance, crisis, regulation and market discipline|
|Keywords:||insurance; regulation; financial crisis|
|Subjects:||L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies
|Depositing User:||Gustavo Ferro|
|Date Deposited:||02. Oct 2010 09:47|
|Last Modified:||31. Dec 2015 02:00|
Appleton, Paul (2009). IFRS Phase II and Solvency II. Ettudes et Dossiers N° 350. The Geneva Association. February.
Baltensperger, Ernst, Peter Buomberger, Alessandro Iuppa, Benno Keller y Arno Wicki (2008). Regulation and Intervention in the Insurance Industry - Fundamental Issues. The Geneva Reports. Risk and Insurance Research. The Geneva Association. February.
Brewer, Elijah, Thomas Mondschean y Philip Strahan (1997). The Role of monitoring in reducing the moral hazard problem associated with government guarantees: Evidence from the Life Insurance Industry. Journal of Risk and Insurance. March.
Chandler, Seth J. (2000). Insurance Regulation. In Encyclopedia of Law and Economics, ed. Boudewijn Bouckaert. Cheltenham, U.K.: Edward Elgar Publishing.
CRO forum (2009). Insurance Risk Management Response to the Financial Crisis.
Cummins, D, S. Harrington y G. Niehaus (1994). An Economic Overview of Risk-Based Capital Requirements for the Property/Liability Industry. Journal of Insurance Regulation 11: 427-447.
Demaestri, Edgardo y Diego Sourrouille (2003). Integrated Financial Regulation and Supervision: Experiences in Selected Countries. Sustainable Development Department. Technical Papers Series. IFM-139. Inter-American Development Bank. December.
Demaestri, Edgardo y Federico Guerrero (2003). The Rationale for Integrating Financial Supervision in Latin America and the Caribbean. Sustainable Development Department. Technical Papers Series. IFM-135. Inter-American Development Bank. July.
Demaestri, Edgardo y Gustavo Ferro (2004). Integrated Financial Supervision and Private Pension Funds. In “Supervising Private Pensions: Institutions and Methods”, issue no. 6 of the Private Pension Series, OECD. Paris. September.
Dewatripont, Mathias y Jean Tirole (1994). The Prudential Regulation of Banks. Cambridge: MIT Press. Walras-Pareto Lectures N° 1.
Doff, René (2008). A Critical Analysis of the Solvency II Proposals. The Geneva Papers 2008, 33 (193-206). The Geneva Association.
Eling, Martin e Ines Holzmüller (2008). An Overview and Comparison of Risk-Based Capital Standards. Working Paper on Risk Management and Insurance. Institute of Insurance Economics, University of St. Gallen. June.
Eling, Martin, Hato Schmeiser y Joan T. Schmit (2008). The Solvency II Process: Overview and Critical Analysis. Risk Management and Insurance Review, Vol. 10, No. 1, pp. 69-85.
Eling, Martin, y Joan Schmit (2008) Working Papers on Risk Management and Insurance. University of St. Gallen. September.
Epermanis, Karen y Scott Harrington (2006). Market Discipline in Property/Casualty Insurance: Evidence from Premium Growth Surrounding Changes in Financial Strength Ratings. Journal of Money, Credit and Banking. September.
Ferro, Gustavo (2010). Insurance regulation and the credit crisis. What’s new? MPRA Paper 22296, University Library of Munich, Germany.
Flannery, Mark (2001). The Faces of “Market Discipline". Journal of Financial Services Research, Springer, vol. 20(2), pages 107-119, October.
Grace, Martin y Robert Klein (2009). Insurance Regulation: The Need for Policy Reform. In The Future of Insurance Regulation forthcoming Brookings Institution Press (ed. by Martin Grace and Robert W. Klein).
Grace, Martin, Robert Klein y Richard Phillips (2003). Insurance Company Failures: Why Do They Cost So Much?. Georgia State University Center for Risk Management and Insurance Research Working Paper No. 03-1.
Geneva Association (2008). The Credit Crisis and the Insurance Industry. Ten Frequently Asked Questions. SC 2 Insurance and Finance, November 19th.
Geneva Association (2010 a). Anatomy of the Credit Crisis. An Insurance Reader From the Geneva Association. Edited by Patrick Lietdke. The Geneva Reports Risk and Insurance Research N° 3. January.
Geneva Association (2010 b). Systemic Risk in Insurance. An Analysis of Insurance and Financial Stability. Special Report of the Geneva Association Systemic Risk Working Group. March.
Harrington, Scott (2009). The Financial Crisis, Systemic Risk and the Future of Insurance Regulation. A Public Policy Paper of the National Association of Mutual Insurance Companies. September.
Harrington, Scott (2006). Federal Chartering of Insurance Companies: Options and Alternatives for Transforming Insurance Regulation. Prepared for the Third Annual Insurance Reform Summit, Networks Financial Institute, Washington DC. NFI at Indiana State University, Policy Brief 02, March.
Holzmüller, Ines (2008). The United States RBC Standards, Solvency II, and the Swiss Solvency Test: A Comparative Assessment. Working Papers on Risk Management and Insurance N° 59. Institute of Insurance Economics, University of St. Gallen. August.
Interview to Robert Klein (2008). In The forecaster. December.
Klein, Robert (2000). Regulating Insurer Solvency In a Brave New World. Center of Risk Management and Insurance Research. Georgia State University. September 21.
Lee, Soon-Jae, David Mayers y Clifford Smith (1997). Guaranty Funds and Risk Taking: evidence from the insurance industry. Journal of Financial Economics. April.
Liedtke, Patrick (2009). Desafíos y oportunidades de la actividad aseguradora internacional. Presentation at 4° Seminario Latinoamericano de Seguros y Reaseguros. Buenos Aires, May.
Litan, Robert (2009). Regulating Insurance After the Crisis. Iniciative on Business and Public Policy at Brookings. Fixing Finance Series 2009-02. The Brookings Institution.
Madero, David y Stephen Lumpkin (2007). A Review of the Pros and Cons of Integrated Pension Supervision with that of Other Financial Activities and Services. International Organization of Pension Supervisors. Working Paper N° 1. August.
Mengle, David (2007). "Credit Derivatives: An Overview" . Economic Review (FRB Atlanta) 92 (4).
Oechslin, Jo (2009). Solvency II: Current Developments and Unresolved Issues. Etudes et Dossiers N° 350. The Geneva Association. February.
Pan European Insurance Forum (2009). Insurance View. Regulatory Consequences of Financial Crisis. PEIF. Paris.
Schich, Sebastian (2009). Insurance Companies and the Financial Crisis. OECD Journal Financial Market Trends, volume 2009, issue 2. October.
Skipper Jr., Harold y Robert Klein (1999). Insurance Regulation in the Public Interest: The Path Towards Solvent, Competitive Markets. Prepared for The Coordinating Committee on International Insurance Issues Coalition of Service Industries. Center for Risk Management and Insurance Research. Georgia State University.
Stiglitz, Joseph (1994). The Role of the State in Financial Markets. Proceedings of the World Bank Annual Conference on Development Economics 1993. The World Bank.
The Task Force (2009). Principles on Financial Reform. A Bipartisan Policy Statement. The Pew Charitable Trusts, Brookings Institution. December.
US Department of the Treasury (2009). Financial Regulatory Reform – A New Foundation: Rebuilding Financial Supervision and Regulations.
Van Rossum, Anton (2005). Regulation and Insurance Economics. The Geneva Papers 2005, 30 (43-46). The Geneva Association.
World Bank e International Monetary Fund (2005). Financial Sector Assessment. A Handbook. The World Bank and the International Monetary Fund.