Solvency regulation in the property/Casualty insurance industry

  • 73 Pages
  • 1.95 MB
  • English
Rand Corp. , Santa Monica, Calif
StatementPatricia Munch & Dennis E. Smallwood.
SeriesRand paper series ;, P-6349
LC ClassificationsMLCM 83/6313 (H)
The Physical Object
Pagination73 p. ;
ID Numbers
Open LibraryOL4456856M
LC Control Number79119719

Solvency Regulation in the Insurance Industry E(Q = E(Cj) = Ec for all i,j, (3) Var(Q) = Var(C,) = Cited by: Solvency regulation in the property/casualty insurance industry. Santa Monica, Calif: Rand, (OCoLC) Document Type: Book: All Authors / Contributors: Patricia Munch; Dennis E Smallwood; Rand Corporation.

Providing an explanation of the complex state-based regulatory system that governs the insurance industry in the United States, this book presents the applicable statutes, regulations, and judicial decisions, as well as information about the industry’s products, procedures, and performance.

The value of solvency regulation to consumers thus depends on whether the net value of firms that are deterred from entry is positive and exceeds the administrative cost of regulation.

Comparison of the characteristics of solvent and insolvent firms provides evidence that is consistent with a model of insolvency as the (unlucky) outcome of Cited by: 7.

Solvency regulation in the property-liability insurance industry: empirical evidence Patricia Munch and Dennis E. Smallwood This article reports empirical evidence concerning the effects of solvency regulation on the number of companies andfrequency of insolvencies.

Minimum. Ten Principles of Property and Casualty Insurance Regulation. October 1, (the HO-3 and HO-8 policies, in industry parlance) became available in Enforcement of laws regarding reserve requirements to ensure solvency is needed in the insurance business, and that enforcement properly belongs in the hands of the state.

More insurance trends and insights. Explore Deloitte’s Insurance Outlook for insight on why insurers’ success depends on the ability to integrate technology, talent, and business-model innovation into legacy environments.; Understand how new insurance technology and regulatory technology are enabling transformative shifts in insurance compliance in our insurance regulation and.

"Solvency Regulation in the Property-Liability Insurance Industry: Empirical Evidence," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pagesSpring. Paul L. Joskow, " Cartels, Competition and Regulation in the Property-Liability Insurance Industry," Bell Journal of Economics, The RAND Corporation, vol.

4(2), pages. In this presentation given at the 14th Annual China Actuarial Conference, he reviews current U.S. regulatory approach to solvency assessment of property/casualty. that most property-casualty insurance transac tions cross state boundaries.

This fact is a financial or solvency regulation; and 2)Economic Regulation of the Insurance Industry. Theory of Solvency Regulation in the Property and Casualty Insurance Industry Patricia Munch, Dennis Smallwood. Chapter in NBER book Studies in Public Regulation (), Gary Fromm, editor (p.

- ) Published in by The MIT PressCited by: Solvency regulation in the property-liability insurance industry Article (PDF Available) in International Advances in Economic Research 10(4) January with 57 Reads. This statistic shows the solvency of property-casualty insurance companies in France from to Inthe solvency of property-casualty French.

Reference the current page of this Book. United States. Advisory Commission on Intergovernmental Relations. State solvency regulation of property-casualty and life insurance companies, book, December ; Washington, D.C.

The ACIR Library is composed of publications that study the interactions between different levels of government. This document addresses state solvency regulation of property-casualty and life insurance companies. Regulatory Solvency Assessment of Property/Casualty Insurance Companies in the United States • Current US regulatory approach to solvency assessment of property/casualty insurance companies • Solvency Modernization Initiative • Own Risk and Solvency Assessment (“ORSA”) 2 An important regulatory shift is underway towards greater emphasis.

Insurance Regulatory Information System (IRIS): IRIS has served as a baseline solvency screening system for the NAIC and state insurance regulators since the mids. Its first (or statistical) phase involves calculating a series of confidential financial ratios for each insurer based on statutory financial annual statement data.

NJDOBI Solvency Regulation FAX Annual Financial Statements of Domestic Health Insurers Health Service Corporation Information Statement Pursuant to N.J.S.A. E-3h. § Ensures insurance companies ability to pay future claims. The NAIC originated in in an effort headed up by the New York State Insurance Department (“NYSID”) to establish uniformity of states requirements and regulation of the insurance industry.

Rubio-Misas, María and Fernández Moreno, Magdalena, Solvency Surveillance and Financial Crisis: Evidence from the Spanish Insurance Industry (February 1, ). Forthcoming, REFC-Spanish Journal of Finance and by: 2.

Regulation of Insurance. Although some federal regulations affect insurance directly, such as the Fair Credit Reporting Act and a few programs that make coverage for catastrophic losses available, such as FEMA's (Federal Emergency Management Agency) National Flood Insurance Program, insurance is regulated primarily at the state level.

State Insurance Regulation. Two papers focus on rate regulation in the auto insurance industry, and provide broad overviews of the structure and economics of the insurance industry as a whole.

Also addressed are the system of regulating insurance companies in the United States, who insures the insurers, and the effects of tax law changes in the s on the prices of.

Description Solvency regulation in the property/Casualty insurance industry EPUB

Chapter 8 Insurance Markets and Regulation. The insurance industry, in fact, is one of the largest global financial industries, helping to propel the global economy. “Inworld insurance premium volume, for [property/casualty and life/health] combined, totaled $ trillion, up percent from $ trillion in ,” according to international reinsurer Swiss Re.

ANALYSIS OF PROPERTY/CASUALTY INSURANCE. RATE REGULATORY LAWS. Executive Summary. three principles of rate regulation are explicitly stated in the All-Industry model statutes adopted by the National Association of Insurance Commissioners (NAIC) in companies.

There are other ways, such as licensing requirements, solvency File Size: KB. The purpose of insurance is to spread the costs of unforeseen economic loss over a wide base of policyholders. In turn, the main purpose of solvency regulation is to ensure that the promised insurance protection is available to an acceptable degree of certainty.

the property/casualty (P/C) insurance industry is its multistep solvency monitoring process. In the initial phase of examination, personnel working for the National Association of Insurance Commissioners (NAIC) compute ratios belonging to the Insurance Regulatory.

Download Solvency regulation in the property/Casualty insurance industry FB2

There are three main types of insurance. Property/casualty consists mainly of auto, home and commercial insurance.

Life/health consists mainly of traditional life insurance and annuity products. Both of these sectors include some health insurance. The third sector, health insurance, includes products from private health insurers, as well as government programs.

Regulation. The debate regarding federal versus state insurance regulation has been heightened as a result of the – economic recession.

As noted in the box “The State of Insurance Regulation—A Continued Debate,” the National Insurance Consumer Protection and Regulatory Modernization Act is the most current proposal as of March the future of insurance regulation 5 4/22/09 PM Page 5 last few years a number of researchers have attempted to document the costs ofFile Size: 78KB.

Solvency regulation is designed to reduce financial risks for the policyholder by proactive early detection of potential insurer distress.

Current market conditions have impacted insurers to varying degrees and will likely continue. It is important to remember that the insurance industry represents a third or. PwC Insurance A quiet revolution – The future of insurance M&A 5 Prediction 1 Increasing inbound M&A in Europe • In the short-term, European targets will attract a measured level of attention from overseas bidders as an ongoing rationale for industry consolidation remains •.

In the United States, the world’s biggest insurance market, the property and casualty (P&C) sector is building upon a strong in which the industry saw net income soar 66 percent to US$60 billion, thanks to a percent boost in net premiums written and nearly breaking even on underwriting (after losing US$ billion the year before).

1 US insurer results deteriorated a bit but .The last General ReView summarized property-casualty (P&C) insurers’ asset allocation and fixed income credit quality, duration and book yields.

Details Solvency regulation in the property/Casualty insurance industry PDF

This edition provides details that underlie fixed income yield and risk metrics. There are two areas of focus.

The first pertains to credit quality.