In this study we develop a financial stability model of the insurance mechanism titled “The 4-Prong Model of the Integrated Insurance Mechanism for Financial stability.” The HIH insurance failure in 2001 in Australia provides a platform to examining the question “Is there connection...

This study describes the AIG model of operations prior to the conglomerate failure up to the point when the liquidity crisis triggered the massive bailout by the US government. It is a study designed to provide understanding of the key factors in the demise of AIG in relationship to systemic...