Risk of Life Insurers: Recent Trends and Transmission Mechanisms

Working Paper No. 23365 We summarize recent trends in risk exposure for U.S. life insurers from variable annuities, shadow insurance, securities lending, and derivatives. We discuss how these sources of risk could be amplified and transmitted to the rest of the financial sector and the real economy....

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Bibliographic Details
Published inNBER Working Paper Series p. 23365
Main Authors Koijen, Ralph SJ, Yogo, Motohiro
Format Paper
LanguageEnglish
Published Cambridge National Bureau of Economic Research, Inc 01.04.2017
Subjects
Economic theory
Insurance industry
Life insurance
Trends
United States > US
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Summary:Working Paper No. 23365 We summarize recent trends in risk exposure for U.S. life insurers from variable annuities, shadow insurance, securities lending, and derivatives. We discuss how these sources of risk could be amplified and transmitted to the rest of the financial sector and the real economy. More complete and transparent financial statements are necessary to accurately assess the overall risk mismatch in the insurance industry. We suggest ways to disclose relevant information and discuss some implications for insurance regulation.
ISSN:0898-2937
DOI:10.3386/w23365