Systemic Risk of Insurers Around the Globe

39 Pages Posted: 4 Apr 2014

See all articles by Gregor N. F. Weiss

Gregor N. F. Weiss

University of Leipzig - Faculty of Economics and Management Science

Christopher Bierth

Technical University of Dortmund

Felix Irresberger

Durham University

Date Written: April 2, 2014

Abstract

We study the exposure and contribution of 253 international life and non-life insurers to systemic risk between 2000 and 2012. For our full sample period, we find systemic risk in the international insurance sector to be small. In contrast, the contribution of insurers to the fragility of the financial system peaked during the recent financial crisis. In our panel regressions, we find the interconnectedness of large insurers with the insurance sector to be a significant driver of the insurers' exposure to systemic risk. In contrast, the contribution of insurers to systemic risk appears to be primarily driven by the insurers' leverage, loss ratios, and funding fragility.

Keywords: Systemic risk, insurer size, interconnectedness, insurance

JEL Classification: G01, G22

Suggested Citation

Weiss, Gregor N. F. and Bierth, Christopher and Irresberger, Felix, Systemic Risk of Insurers Around the Globe (April 2, 2014). Available at SSRN: https://ssrn.com/abstract=2419508 or http://dx.doi.org/10.2139/ssrn.2419508

Gregor N. F. Weiss (Contact Author)

University of Leipzig - Faculty of Economics and Management Science ( email )

Grimmaische Str. 12
Leipzig, 04109
Germany
+49 341 97 33821 (Phone)
+49 341 97 33829 (Fax)

HOME PAGE: http://www.wifa.uni-leipzig.de/nfdl

Christopher Bierth

Technical University of Dortmund ( email )

Emil-Figge-Straße 50
Dortmund, 44227
Germany

Felix Irresberger

Durham University ( email )

Old Elvet
Mill Hill Lane
Durham, Durham DH1 3HP
United Kingdom

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