IDEAS home Printed from https://ideas.repec.org/a/aza/rmfi00/y2017v10i2p164-176.html
   My bibliography  Save this article

Statutory bail-in for an orderly resolution of insurers

Author

Listed:
  • Kobayashi, Shinya

    (Financial Services Agency of Japan, Japan)

Abstract

This paper explores how statutory bail-in can fit in with the resolution of insurers. Statutory bail-in has been debated mainly in the context of systemically important banks. This paper, therefore, first investigates how insurers, in contrast with banks, can be interconnected with the financial system. Then, it explores in what circumstances statutory bail-in can be an effective tool for the resolution of insurers, taking into account specificities of insurance business, existing resolution regimes for insurers, past cases of failed insurers and possible technical challenges in implementation. This paper concludes that statutory bail-in could be a possible tool for insurance resolution in the following limited cases: (1) an insurer is considerably interconnected with other financial institutions through transactions with them and (2) the supervisor considers that, due to the interconnected nature, failure of the insurer could disrupt the stability of the financial system, beyond financial market instability, and ultimately, have an adverse impact on the real economy.

Suggested Citation

  • Kobayashi, Shinya, 2017. "Statutory bail-in for an orderly resolution of insurers," Journal of Risk Management in Financial Institutions, Henry Stewart Publications, vol. 10(2), pages 164-176, April.
    • Handle: RePEc:aza:rmfi00:y:2017:v:10:i:2:p:164-176
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/1565/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/1565/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    bail-in; resolution; insurance; financial stability; regulation;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:rmfi00:y:2017:v:10:i:2:p:164-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.