Regulating Systemic Risk in Insurance

Systemic Risk in the Insurance Sector: A Review and Directions for Future Research

“…Notes. The informed reader might note that we place only limited focus on a highly critical work on the insurance industry by Schwarcz and Schwarcz (). We believe that this work is not very helpful in our context because the definition of systemic risk is too broad and any negative event qualifies for systemic risk.…”

“…The authors relate the issuing of cat bonds to systemic risk measures and find that cat bonds have no statistical impact on SRISK or ΔCoVaR. Finally, Kessler (), the IAIS (, ), and Schwarcz and Schwarcz () note that the volume of cat bonds is remains relatively low and thus cannot be counted as either a contribution to systemic risk or a vulnerability to impairments of the financial system.…”

“…Both approaches consider only institutions and bankruptcies and ignore, for example, institutions that are in distress but not insolvent, in addition to business activities. Our approach is also employed by others, for example, Klein () and Schwarcz and Schwarcz ().…”

Where the Wild Things are: Journeys to Transnational Legal Orders, and Back

“…With both international and domestic public lawyers-turned-global engaged in tireless and detailrich analyses of iterations of public authority, on the one hand, 163 and emerging forms of global administrative law structures, on the other, 164 private lawyers need to move beyond Hayek, but also Fuller, 165 in order to start asking (again 166 ) the hard questions as to who does what how and in whose interests. Maybe the regulatory aftermath of the global financial crisis and its continuing permutations can, for a little longer, still offer one of the much needed opportunities for a comprehensive political economy analysis of transnational financial law that takes the available historical factual accounts by finance experts 167 and banking and securities law scholars 168 as well as regulatory governance theorists 169 seriously. Yet, this space is not one for the specialists or planners against whom Hayek displayed such abhorrence.…”

History, problems, and prospects of Islamic insurance (Takaful) in Bangladesh

“…This is because, Islamic insurance is based on shariah rules and regulations (Foster 2007), while conventional insurance is based on conventional regulations (Schwarcz and Schwarcz 2014). Although a committee was formed by the government of Bangladesh to draft separate insurance laws for Islamic and conventional insurance in 2007, the outcome of the effort has yet to materialise.…”