This new report from the Geneva Association looks at the relationship between insurance wind-downs and systemic risk, concluding that frameworks for dealing with such risks in banking "would be a poor guide" to necessary changes in insurance. The report argues that all necessary recovery and...

We study solvency contagion risk in the UK banking system from 2008 to 2015. We develop a model that only accounts for losses transmitted after banks default, but also for losses due to the fact that creditors revalue their exposures when probabilities of default of their counterparties change....