nep-ias New Economics Papers
on Insurance Economics
Issue of 2006‒05‒27
two papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Bussiness Management

  1. Resolution of failed banks by deposit insurers : cross-country evidence By Laeven, Luc; Beck, Thorsten
  2. Life insurance securitisation in Europe: An overview on the effects of alternative capital resources and its relation to regulator and IFRS guidelines. By Pieter Walhof*; André B. Dorsman; André Thibeault

  1. By: Laeven, Luc; Beck, Thorsten
    Abstract: There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role of the deposit insurer. The authors use quantitative analysis for 57 countries and discuss specific country cases to illustrate this variation. Using data for over 1,700 banks across 57 countries, they show that banks in countries where the deposit insurer has the responsibility of intervening failed banks and the power to revoke membership in the deposit insurance scheme are more stable and less likely to become insolvent. Involvement of the deposit insurer in bank failure resolution thus dampens the negative effect that deposit insurance has on banks ' risk taking.
    Keywords: Banks & Banking Reform,Financial Crisis Management & Restructuring,Financial Intermediation,Corporate Law,Insurance & Risk Mitigation
    Date: 2006–05–01
  2. By: Pieter Walhof*; André B. Dorsman; André Thibeault (Nyenrode Business Universiteit)
    Abstract: Recently Life Insurance Securitisation practices have been probed in dedicated areas to access the wider capital markets. These developments have shown a rising interest among leading insurers and reinsurers to start building experience with securitisation practices, either for risk transfer, raising additional capital or a combination of these. As these structures have proven to be cost effective and generally accepted in the banking segment it is foreseen that securitisation can become an accepted method in insurance environments too in the foreseeable future. This paper provides an overview of recent practices in Life Insurance Securitisation and aims to demonstrate that Life Insurance Securitisation has viable potential for insurance companies in the future to reduce the cost of (regulatory) capital and transferring risk to the capital markets.
    Keywords: Life Insurance Securitisation, risk transfer, capital raising
    Date: 2005

This nep-ias issue is ©2006 by Soumitra K Mallick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.