TY  - UNPD
A1  - Kubitza, Christian
A1  - Regele, Fabian
T1  - Persistence of insurance activities and financial stability
N2  - Different insurance activities exhibit different levels of persistence of shocks and volatility. For example, life insurance is typically more persistent but less volatile than non-life insurance. We examine how diversification among life, non-life insurance, and active reinsurance business affects an insurer's contribution and exposure to the risk of other companies. Our model shows that a counterparty's credit risk exposure to an insurance group substantially depends on the relative proportion of the insurance group's life and non-life business. The empirical analysis confirms this finding with respect to several measures for spillover risk. The optimal proportion of life business that minimizes spillover risk decreases with leverage of the insurance group, and increases with active reinsurance business.
T3  - ICIR Working Paper Series - No. 30/17 
KW  - Insurance Companies
KW  - Financial Stability
KW  - Persistence
Y1  - 2017
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/77136
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-771365
PB  - International Center for Insurance Regulation
CY  - Frankfurt am Main
ER  -