Purpose - Despite the sophisticated regulatory regime established in Solvency II, analysts should be able to consider other less complex indicators of the soundness of insurers. The Z-score measure, which has traditionally been used as a proxy of individual risk in the banking sector, may be a...

One of the important consequences to be drawn from the course of the financial crisis up to now is the insight that more attention must be paid in the future to the factors of liquidity, liquidity management and liquidity protection. That holds true for the protection of the stability of an...

On May 11-12, 2011, SUERF, the Belgian Financial Forum, the Brussels Finance Institute and the Centre for European Policy Studies (CEPS) jointly organised the 29th SUERF Colloquium New paradigms in money and finance? The papers included in this SUERF Study are based on contributions to the...

Life insurers' odds of being placed under regulatory control (for example, conservatorship or receivership) during the financial crisis years of 2008 and 2009 increased with deteriorating fundamentals at a much higher rate than during normal times or during the previous recession. However, no...

The failure of financial institutions is often depicted as an externally-driven event in which certain triggers almost inevitably lead to the collapse of the firm. In contrast, this paper views institutional failure as a multistage process in which precautionary measures taken by the firm can...

Since 2008, catastrophic losses and financial turmoil have deeply shaken the insurance and reinsurance industries. Severe difficulties encountered by sector leaders like AIG and Swiss Re have shed light on the potential fragility of the players, and have increased attention on the subject of...

Life insurers' odds of being placed under regulatory control (for example, conservatorship or receivership) during the financial crisis years of 2008 and 2009 increased with deteriorating fundamentals at a much higher rate than during normal times or during the previous recession. However, no...

This paper provides evidence on factors affecting the level of the regulatory solvency ratio of Spanish insurers from 2005-2012 by employing the two-step system generalized method of moments in the analysis. Results show a significant degree of persistence in the regulatory solvency ratio. Cost...

Historical evidence shows insurer insolvencies are, on average, three-to-five times more expensive than those of other financial institutions. Using a unique dataset of insurer insolvencies from 1986 to 1999, we examine the cost of insolvency resolution and the factors driving these costs. We...

This paper develops an optimal resolution triage strategy for a deposit-insurance regulator. The regulator seeks to maximize the market value of the deposit insurance enterprise, subject to budget, personal, bureaucratic, political, informational and legal restraints. Testable hypotheses are...