TY  - UNPD
A1  - Laux, Christian
T1  - On the role of the liquidity premium in the regulation of insurers
T2  - White paper / Center for Financial Studies ; 7
N2  - Prepared by Christian Laux, Vienna University of Economics and Business & Center for Financial Studies (CFS) for the “Workshop on Liquidity Premium in Solvency II: Conceptual and Measurement Issues,” DNB Amsterdam, March 18, 2011. The insurance industry and the Committee of European Insurance and Occupational Pension Supervisors (CEIOPS) propose to add a liquidity premium to the risk-free rate when discounting liabilities in times of financial turmoil. The objective is to counterbalance adverse effects on regulatory capital due to a decrease in asset values caused by illiquidity in a crisis. As I argue in this note, although the motive might be sensible, the proposal to add a liquidity premium when discounting liabilities is not the right approach to tackle the problem.
T3  - White paper / Center for Financial Studies - 7 
Y1  - 2011
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/16269
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-101954
UR  - https://www.ifk-cfs.de/1818.html
ER  -