Regulation of Insurance Markets

Ray Rees, Hugh Gravelle and Achim Wambach

The Geneva Risk and Insurance Review, 1999, vol. 24, issue 1, 55-68

Abstract: There have been major changes in the way European insurance markets are regulated, and there is still considerable debate about what the form and scope of regulation should be. This article examines the arguments for solvency regulation when consumers are fully informed of the insurer's insolvency risk. It is shown firms always provide enough capital to ensure solvency, unless there are restrictions on the composition of their asset portfolios. The conclusion holds even when competition means that only normal profits can be earned. This suggests that the role of regulation in insurance markets should be confined to providing consumers with information about the default risk of insurers. The Geneva Papers on Risk and Insurance Theory (1999) 24, 55–68. doi:10.1023/A:1008733315931

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.palgrave-journals.com/grir/journal/v24/n1/pdf/grir1999111a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/grir/journal/v24/n1/full/grir1999111a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:genrir:v:24:y:1999:i:1:p:55-68

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10713

Access Statistics for this article

The Geneva Risk and Insurance Review is currently edited by Michael Hoy and Nicolas Treich

More articles in The Geneva Risk and Insurance Review from Palgrave Macmillan, International Association for the Study of Insurance Economics (The Geneva Association) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().