Insurance and Issues in Financial Soundness

Udaibir Das, Richard Podpiera and Nigel Davies

No 2003/138, IMF Working Papers from International Monetary Fund

Abstract: This paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability. Building on this experience and the experience gained under the FSAP, the paper proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.

Keywords: WP; financial system; economic expansion; return on equity; banking sector; financial crisis; market risk; retention ratio; soft market; insurance; financial stability; soundness indicators; market share; net premium; pass-through products; market value; asset risk; financial situation; current liabilities; management risk; return on assets; Insurance companies; Financial soundness indicators; Capital adequacy requirements; Commercial banks; Europe; North America (search for similar items in EconPapers)
Pages: 44
Date: 2003-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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