The Contribution of Shadow Insurance to Systemic Risk

Soon Heng Leong; Carlo Bellavite Pellegrini; Giovanni Urga

doi:10.1016/j.jfs.2020.100778

The Contribution of Shadow Insurance to Systemic Risk

Soon Heng Leong, Carlo Bellavite Pellegrini, Giovanni Urga

City, University of London

Risultato della ricerca: Contributo in rivista › Articolo in rivista

Abstract

Shadow insurance is a regulatory loophole exploited by certain insurance groups to increase risk exposure, potentially destabilising the financial system. In this paper, we evaluate the contribution of shadow insurance to systemic risk of the global financial sector using a sample of 215 international insurance entities covering the 2004–2017 period. We detect shadow insurance by examining every reinsurance agreement on the Schedule S filings. Using both ΔCoVaR and SRISK measures, we find that the practice of shadow insurance is a significant driver of global systemic risk.

Lingua originale	English
pagine (da-a)	1-20
Numero di pagine	20
Rivista	Journal of Financial Stability
Volume	51
DOI	https://doi.org/10.1016/j.jfs.2020.100778
Stato di pubblicazione	Pubblicato - 2020

Keywords

Financial stability
Interconnectedness
Shadow banking activity
Size

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10.1016/j.jfs.2020.100778

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KW - Shadow banking activity

KW - Size

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KW - Interconnectedness

KW - Shadow banking activity

KW - Size

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The Contribution of Shadow Insurance to Systemic Risk

Abstract

Keywords

Accesso al documento

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