Systemic Risk in the Insurance Industry and its Potential
Journal Title: Zarządzanie i Finanse - Year 2013, Vol 11, Issue 2
Abstract
The most important sources of systemic risk are banks, but the public debate on this issue also applies to the insurance industry because of its great importance to the financial system and the broader economy. This article contains the assessment of systemic risk in the insurance industry, seeking the dilemma whether insurers have the potential for creating systemic risk. This paper un-derlines the differences between insurers’ and banks’ business models. Referring the criteria designed by the IAIS to traditional insurance it does not create systemic risk. Possible disruption, which may appear as the result of internal or external disturbances, or insurer failure, may have a significant impact on the economy, but rather on the regional level. On the other hand, non-traditional and non-insurance activity (which is often carried out in the framework of complex insurance groups and financial conglomerates) can create systemic risk. Because of this, there is a need for the regulation and supervision of institutions at both the micro-and macro-prudential.
Authors and Affiliations
Teresa Bednarczyk
Keywords
Related Articles
- EP ID EP121250
- DOI -
- Views 33
- Downloads 0
System of healthcare – financing and availability of services. Selected issues
The article evaluates existing relationships between the payer and the service providers, as well as the influence of these relations upon availability of services financed from public funds, in terms of financial...
Working capital management of local government hospitals in Poland
This paper presents the results of research on working capital management in 67 public hospitals in years 2009-2011. There was appointed receivables turnover ratios, stock rotation and accounts payable ratio, as we...
Struktura geograficzna firm inwestycyjnych w wybranych krajach Europy Centralnej a handel algorytmiczny
Celem badania była ocena stopnia skoncentrowania geograficznego firm inwestycyjnych w krajach sąsiedzkich. Do analizy wybrano Polskę, Czechy i Słowację. Na podstawie analizy 5671 notyfikacji na rynkach regulowanych wyzna...
Czy rynek repo może być przyczyną kolejnego kryzysu?
Artykuł stanowi analizę zmian na rynku repo w Stanach Zjednoczonych oraz Unii Europejskiej. Zaprezentowane dane podkreślają stale rosnący udział tego rynku w finansowaniu instytucji pośrednictwa finansowego. Dodatk...
Competency Approach To Building The Effectiveness of The Realisation of Innovative Projects in The Company
Requirements of the safety of the completion of innovative projects result largely, from the ability of the organization to keep the original and fresh approach towards their accomplishment. The idea written in the...