Insurance guarantee schemes aim to protect policyholders from the costs of insurer insolvencies. However, guarantee …-shifting behavior for insurance guarantee schemes under the two different financing alternatives: a flat-rate premium assessment versus … expected utility. We find that the risk-based insurance guarantee scheme can only mitigate the insurer's risk-shifting behavior …

The European insurance industry is awaiting the new EU-wide harmonized Solvency II framework. Before its introduction … consolidation in the insurance sector due to recognition of geographic diversification effects in Solvency II's standard formula …-life insurance sector. We identify situations in which the consolidation becomes profitable. Our results indicate that the Solvency …

The European insurance industry is among the largest institutional investors in Europe. Therefore, major reallocations … constraint for market risk and thus would not significantly influence the insurance companies' investment strategies. -- Solvency …

Insurance regulation is typically aimed at policyholder protection. In particular, regulators attempt to ensure the … financial "safety" of insurance firms, for example, by means of capital regulation, and to enhance the "affordability" of … insurance, for example, by means of price ceilings. However, these goals are in conflict. Therefore, we identify situations in …

influences the equity position and investment strategy of a shareholder-value-maximising insurance company. Intuitively, a higher …

undertaken to achieve the maximum solvency level. -- Behavioral Insurance ; Risk Management of Insurance Companies …

This paper compares the shareholder-value-maximizing capital structure and pricing policy of insurance groups against … instruments. We show that using these instruments enables the group to offer insurance with less default risk and at lower … group building being beneficial for shareholders but detrimental for policyholders. -- Insurance groups ; insurer default …

welfare by implementing appropriate tax and subsidy schemes that make insurance more affordable and also lower insurers …

Depending on the point of time and location, insurance companies are subject to different forms of solvency regulation …. In modern regulation regimes, such as the future standard Solvency II in the EU, insurance pricing is liberalized and …, supervisors require the prior approval of policy conditions and insurance premiums, but do not conduct risk-based capital …

In light of the upcoming Solvency II Pillar 3 disclosure regulation for the insurance industry, this paper explores the … risk disclosure practices in annual reports of European primary insurers in the Dow Jones Stoxx 600 Insurance Index between … disclosure and insurance companies' characteristics such as size, risk, profitability, ownership dispersion, cross-listing, home …