This paper addresses the issue of systemic risk in insurance and investigates how financial markets evaluate the introduction of a new regulation addressed to global systemically important insurers (G-SIIs). We analysed the stock price reactions and the evolution of the distance-to-default of a sample of 44 of the world's largest insurers to the publication of the first list of 9 G-SIIs and the release of information regarding their new capital requirements and other policy measures. The results of our event study suggest that, overall, investors doubt the effectiveness of the new regulatory framework in reducing systemic risk in the insurance sector and curbing the moral hazard implications of a “too systemic to fail” policy.

Bongini, P., Nieri, L., Pelagatti, M., Piccini, A. (2017). Curbing systemic risk in the insurance sector: A mission impossible?. THE BRITISH ACCOUNTING REVIEW, 49(2), 256-273 [10.1016/j.bar.2016.08.002].

Curbing systemic risk in the insurance sector: A mission impossible?

Bongini, P;Pelagatti, M;
2017

Abstract

This paper addresses the issue of systemic risk in insurance and investigates how financial markets evaluate the introduction of a new regulation addressed to global systemically important insurers (G-SIIs). We analysed the stock price reactions and the evolution of the distance-to-default of a sample of 44 of the world's largest insurers to the publication of the first list of 9 G-SIIs and the release of information regarding their new capital requirements and other policy measures. The results of our event study suggest that, overall, investors doubt the effectiveness of the new regulatory framework in reducing systemic risk in the insurance sector and curbing the moral hazard implications of a “too systemic to fail” policy.
Articolo in rivista - Articolo scientifico
Systemic risk; Insurance companies; Event study; Regulatory reforms; Loss absorbency requirements
English
16-ago-2016
2017
49
2
256
273
reserved
Bongini, P., Nieri, L., Pelagatti, M., Piccini, A. (2017). Curbing systemic risk in the insurance sector: A mission impossible?. THE BRITISH ACCOUNTING REVIEW, 49(2), 256-273 [10.1016/j.bar.2016.08.002].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/132762
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