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 …

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 …

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 …