Why is the cost of resolving insurance company failures so high? Evidence in this paper suggests that the state … insurance regulatory bodies in charge of the liquidation process turn over an average of only 37 cents for each $1,00 of pre …

The goal of this essay is to show an insurance market equilibrium defined by an insurance product price and a …

The variation in the degree of price regulation in the property-liability insurance market in Canada varies across time …

This paper investigates strategic brinksmanship between regulated property-liability insurance firms and their … regulators. Prior research suggests that firms increase their financial leverage, and thus their probability of bankruptcy and … expected bankruptcy costs, in order to mitigate the severity of binding price ceilings. Although financial leverage can be …

In the present paper, I analyze how unobservable savings affect risk sharing and bankruptcy decisions in the financial … insurance and incentive motivations. Second, unobservable markets do induce default, but only as long as insurance markets are … incomplete. Therefore, their presence is not a rationale for government intervention on bankruptcy via "resolution regimes …

brink of bankruptcy. In one case, AIG used securities lending to transform insurance company assets into residential … threatening the solvency of the life insurance companies. AIG also sold insurance on multi-sector CDOs, backed by real estate …

shocks either in the interbank market or by using a costly bankruptcy procedure, and depositors trade in the asset market …