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The Impact of introducing insurance guaranty schemes on pricing and capital structure
Recurso electrónico / electronic resource
MAP20130023908
Schmeiser, Hato ‌
The Impact of introducing insurance guaranty schemes on pricing and capital structure / Hato Schmeiser, Joël Wagner
Sumario: The introduction of an insurance guaranty scheme can have significant influence on the pricing and capital structures in a competitive market. The aim of this article is to study this effect on competitive equity-premium combinations while considering a framework with policyholders and equity holders where guaranty fund charges are volume-based, as levied in existing schemes. Several settings with regard to the origin of the fund contributions are assessed and the immediate effects on the incentives of the policyholders and equity holders are analyzed through a one-period contingent claim approach. One result is that introducing a guaranty scheme in a market with competitive conditions entails a shift of equity capital towards minimum solvency requirements. Hence, adverse incentives may arise with regard to the overall security level of the industry
En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 03/06/2013 Volumen 80 Número 2 - junio 2013 , p. 273-308
1. Garantías ‌. 2. Mercado de seguros ‌. 3. Prestaciones complementarias ‌. 4. Solvencia ‌. 5. Productos de seguros ‌. 6. Tarificación ‌. 7. Requerimientos financieros ‌. I. Wagner, Joël ‌. II. Title.