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....

The Liikanen Group proposes contingent convertible (CoCo) bonds as instruments to enhance financial stability in the banking industry. Especially life insurance companies could serve as CoCo bond holders as they are already the largest purchasers of bank bonds in Europe. The growing number of...

Pursuant to art. 45 of the Solvency II Framework Directive, all insurance undertakings will be obliged to conduct an "Own Risk and Solvency Assessment" (ORSA). ORSA's relevance is not limited only to the second pillar of Solvency II, where mainly qualitative requirements are to be found. ORSA...

The Liikanen Group proposes contingent convertible (CoCo) bonds as a potential mechanism to enhance financial stability in the banking industry. Especially life insurance companies could serve as CoCo bond holders as they are already the largest purchasers of bank bonds in Europe. We develop a...

The Liikanen Group proposes contingent convertible (CoCo) bonds as a potential mechanism to enhance financial stability in the banking industry. Especially life insurance companies could serve as CoCo bond holders as they are already the largest purchasers of bank bonds in Europe. We develop a...

This paper compares the shareholder-value-maximizing capital structure and pricing policy of insurance groups against that of stand-alone insurers. Groups can utilise intra-group risk diversification by means of capital and risk transfer instruments. We show that using these instruments enables...

A life care annuity is a bundled insurance product comprised of a life annuity and long-term care insurance. Some recent studies find the two risks-longevity risk and long-term care risk-to be opposing and thus life care annuities advantageous in regard to pooling the two risks. Based on...