This paper investigates strategic brinksmanship between regulated property-liability insurance firms and their … regulators. Prior research suggests that firms increase their financial leverage, and thus their probability of bankruptcy and … expected bankruptcy costs, in order to mitigate the severity of binding price ceilings. Although financial leverage can be …

The project is focused on top-down stress testing of the Czech insurance sector. The aim of the present paper is to … describe the advanced method for macro stress testing of insurance companies used by the CNB. We apply the presented stress … test to eleven Czech insurance companies. The shocks applied are designed to replicate a macroeconomic scenario and to …

reducing the asset substitution incentive. The reduction of bankruptcy costs is strong only when the countercyclicality feature … important depending on priorities (moderate the asset substitution incentive or reduce bankruptcy costs). …

short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …

simultaneous equations applied to the U.S. property-liability insurance industry. The results identify significant interactions …

The goal of this essay is to show an insurance market equilibrium defined by an insurance product price and a …