New Risk Management Findings Reported from Technical University of Munich (Systemic Risk In Financial Markets: How Systemically Important Are Insurers?)

2019 AUG 30 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Risk Management have been published. According to news reporting originating from Munich, Germany, by NewsRx correspondents, research stated, “This study investigates how insurers contribute to systemic risk in the global financial system. In a modeling framework embracing publicly traded and nonpublic firms, the financial system is represented by 201 major banks and insurers over the period from 2004 through 2014.”

Financial supporters for this research include Deutsche Bundesbank, European Union.

Our news editors obtained a quote from the research from the Technical University of Munich, “In the aggregate, the insurance sector contributes relatively little to systemic losses; during the financial crisis and the European sovereign debt crisis, its risk share averaged 9 percent. Individually, however, several multi-line and life insurers appear to be as systemically risky as the riskiest banks. Our results, therefore, affirm that some insurers are systemically important and indicate that insurers’ level of systemic risk varies by line of business.”

According to the news editors, the research concluded: “We discuss several important implications of our results for managing systemic risk in insurance, arguing for a combination of entity- and activity-based regulation.”

For more information on this research see: Systemic Risk In Financial Markets: How Systemically Important Are Insurers? Journal of Risk & Insurance, 2019;86(3):729-759. Journal of Risk & Insurance can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Risk & Insurance - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6975)

The news editors report that additional information may be obtained by contacting C. Kaserer, Technical University, Chair Financial Management & Capital Markets, Arcisstr 21, D-80333 Munich, Germany.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/jori.12236. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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