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On the exposure of insurance companies to sovereign risk : portfolio investments and market forces
Düll, Robert; König, Felix; Ohls, Jana - 2015
risk. This paper focuses on the transmission of sovereign risk to insurance companies as some of the largest institutional … investors in the sovereign bond market. We use a firm level panel dataset that covers large insurance companies, banks and non … reflected in current insurance regulation (incl. upcoming Solvency II in Europe). …
Persistent link: https://www.econbiz.de/10011373080
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Safe but fragile : information acquisition, sponsor support and shadow bank runs
König, Philipp Johann; Pothier, David - 2018
This paper proposes a theory of shadow bank runs in the presence of sponsor liquidity support. We show that liquidity lines designed to insulate shadow banks from market and funding liquidity risk can be destabilizing, as they provide them with incentives to acquire private information about...
Persistent link: https://www.econbiz.de/10011855308
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The effect of patent litigation insurance : theory and evidence from NPEs
Ganglmair, Bernhard; Helmers, Christian; Love, Brian J. - 2020
We analyze the extent to which private defensive litigation insurance deters patent assertion by non …-practicing entities (NPEs). We study the effect that a patent-specific defensive insurance product, offered by a leading litigation … defensive litigation insurance on the behavior of patent enforcers and accused infringers. We show that the availability of …
Persistent link: https://www.econbiz.de/10012267115
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Sweet lemons : mitigating collusion in organizations
Pollrich, Martin; Negenborn, Colin von - 2018
This paper shows that the possibility of collusion between an agent and a supervisor imposes no restrictions on the set of implementable social choice functions (SCF) and associated payoff vectors. Any SCF and any payoff profile that are implementable if the supervisor's information was public...
Persistent link: https://www.econbiz.de/10011902729
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Sequential versus static screening : an equivalence result
Krähmer, Daniel; Strausz, Roland - 2017
We show that every sequential screening model is equivalent to a standard text book static screening model. We use this result and apply well-established techniques from static screening to obtain solutions for classes of sequential screening models for which standard sequential screening...
Persistent link: https://www.econbiz.de/10011626592
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Dynamic screening with verifiable bankruptcy
Krähmer, Daniel; Strausz, Roland - 2022
We consider a dynamic screening model where the agent may go bankrupt due to, for example, cash constraints. We model bankruptcy as a verifiable event that occurs whenever the agent makes a per period loss. This leads to less stringent truth-telling constraints than those considered in the...
Persistent link: https://www.econbiz.de/10014476119
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Does having insurance change individuals self-confidence?
Guber, Raphael; Kocher, Martin; Winter, Joachim - 2018
case. We show that in an insurance context, being insured against losses that may be incurred in a real-effort task changes … subjects' self-confidence. Our novel experimental design allows us to disentangle selection into insurance from the effects of … uninsured subjects are underconfident while those that obtain insurance have well-calibrated beliefs. Our results suggest that …
Persistent link: https://www.econbiz.de/10011899247
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Lethal lapses : how a positive interest rate shock might stress German life insurers
Feodoria, Mark; Förstemann, Till - 2015
Life insurers typically grant policyholders a surrender option. We demonstrate that the resulting lapse risk could materialise in the form of a "policyholder run" if interest rates were to increase sharply. An inverse stress test based on a unique set of regulatory panel data suggests that...
Persistent link: https://www.econbiz.de/10011285414
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Interest rate risk and the Swiss solvency test
Eder, Armin; Keiler, Sebastian; Pichl, Hannes - 2013
In this paper, we present a new approach to measuring interest rate risk for insurers within the Swiss Solvency Test, which overcomes the shortcomings of the standard model. The standard model of the Swiss Solvency Test is based on more interest rate risk factors than are actually needed to...
Persistent link: https://www.econbiz.de/10010202889
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How is the low-interest-rate environment affecting the solvency of German life insurers?
Kablau, Anke; Weiß, Matthias - 2014
Life insurance companies are affected directly by the impact of the low-interestrate environment. To fulfil promised … funds requirements. This points to a potential solvency risk in the life insurance industry. …
Persistent link: https://www.econbiz.de/10010432256