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Regulation and the connectedness of insurers to the banking sector: International evidence

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Listed:
  • Greg Niehaus
  • Jannes Rauch
  • Sabine Wende

Abstract

Using variation across countries and time in the degree to which regulations restrict banks and insurers from engaging in the same activities, we find that property/liability insurers' connectedness to the banking sector declines when regulatory restrictions increase, but life insurers' connectedness to banks does not. The results suggest that the connectedness between life insurers and banks is largely due to these institutions sharing common underlying economic and financial risk factors that exist even when regulation restricts these institutions from engaging in each other's activities.

Suggested Citation

  • Greg Niehaus & Jannes Rauch & Sabine Wende, 2019. "Regulation and the connectedness of insurers to the banking sector: International evidence," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 22(4), pages 393-420, December.
    • Handle: RePEc:bla:rmgtin:v:22:y:2019:i:4:p:393-420
    DOI: 10.1111/rmir.12135
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    References listed on IDEAS

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