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SUMMARY:Shadow Insurance
DTSTART:20140613T103000
DTEND:20140613T120000
DTSTAMP:20260407T003737Z
UID:e33426920026e7b3406b18d93c25311d2c3cbb7c7ab7a76087a137f6
CATEGORIES:Conferences - Seminars
DESCRIPTION:Ralph KOIJEN (London Business School)\nLiabilities ceded by li
 fe insurers to shadow reinsurers (i.e.\, affiliated and less regulated off
 -balance-sheet entities) grew from $11 billion in 2002 to $364 billion in 
 2012. Life insurers using shadow insurance\, which capture half of the mar
 ket share\, ceded 25 cents of every dollar insured to shadow reinsurers in
  2012\, up from 2 cents in 2002. Our adjustment for shadow insurance reduc
 es risk-based capital by 53 percentage points (or 3 rating notches) and ra
 ises default probabilities by a factor of 3.5. We develop a structural mod
 el of the life insurance industry and estimate the impact of current polic
 y proposals to contain or eliminate shadow insurance. In the counterfactua
 l withoutshadow insurance\, the average company currently using shadow ins
 urance would raise its price by 12 percent\, and annual life insurance und
 erwritten would fall by 11 percent for the industry.
LOCATION:UNIL\, Extranef\, room 126 https://planete.unil.ch/plan/?local=EX
 T-126
STATUS:CONFIRMED
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