The Insurance Industry and Systemic Risk: Evidence and Discussion
AbstractThe financial market events in September 2008 seem unprecedented in modern times. While other systemically important events happened in the last thirty years affecting U.S. markets, the one month turmoil and government response is without equal. As a result, insurance industry economists have been dusting off dictionaries and looking up what systemic risk really means. Further, there are other policy analysts who are linking the insurance industry to systemic risk with a potential goal of changing the governmental level at which the entire industry is regulated. Systemic risk and the role insurers play in the market is of concern to both state regulators and Congress. This paper presents evidence regarding systemic effect of insurers and will discuss this in light of the rationale for federal regulation of the insurance industry
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Bibliographic InfoPaper provided by Indiana State University, Scott College of Business, Networks Financial Institute in its series NFI Policy Briefs with number 2010-PB-02.
Length: 40 pages
Date of creation: Apr 2010
Date of revision:
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Web page: http://indstate.edu/business/nfi/
More information through EDIRC
Systemic Risk; Insurance Industry; American International Group (AIG);
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
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