Analysis of Systemic Risk in the Chinese Insurance Market Based on Reinsurance Networks

Authors

  • Wang Wei School of Insurance, University of Finance and Economics, Beijing, China.
  • Liu Ming School of Insurance, University of Finance and Economics, Beijing, China.

DOI:

https://doi.org/10.14738/assrj.103.14208

Keywords:

insurance, systemic risks, network perspective

Abstract

Since the financial crisis in 2008, regulators around the world have been committed to understanding and mitigating the potential systemic risks brought by the insurance industry, focusing on the risk transmission field within the insurance industry. This paper focuses on the possible transmission relationship of systemic risk in China's insurance market through the reinsurance network from the perspective of macro-prudential, discusses the accumulation and contagion effect of systemic risk over time, and puts forward suggestions on the macro-prudential supervision of China's insurance industry.

References

Acharya V V, Biggs J, Richardson M, et al, On the financial regulation of insurance companies, NYU Stern School of Business, 2009.08: p.11.

Acharya V V, Richardson M, Is the insurance industry systemically risky? Modernizing insurance regulation, 2014: p.151-179.

Cummins J D, Weiss M A, Systemic Risk and Regulation of the US Insurance Industry, Modernizing Insurance Regulation, 2014: p. 85-135.

Cummins J D, Weiss M A, Systemic risk and the US insurance sector, Journal of Risk and insurance, 2014, 81(3): p. 489-528.

Park S C, Xie X, Reinsurance and systemic risk: The impact of reinsurer downgrading on property–casualty insurers, Journal of Risk and Insurance, 2014. 81(3): p. 587-622.

Kanno M, The network structure and systemic risk in the global non-life insurance market, Insurance: Mathematics and Economics, 2016. 67: 38-53.

Wang Lizhen, Kang Chao, Research on the systemic relevance between insurance institutions and other financial institutions——discussion on the systemically important insurance institutions, Insurance Research, 2017 (01): p.16-26+67. 170

Wang Lizhen, Li Xiufang, Zheng Sujin, Research on systemic risk contagion of property insurance market based on reinsurance preference and risk portfolio impact, China Soft Science, 2017 (04): p.41-53.

Wang Lizhen, Research on the contagion effect of systemic risk reinsurance in China's insurance industry, Contemporary Economic Science, 2015,37 (05): p.1-10+124.

Niu Xiaojian, Wu Xinmei. Research on systemic risk of reinsurance market based on complex network, Insurance Research, 2019 (03): p. 48-62.

Berdin E, Sottocornola M, Systemic risk in insurance: Towards a new approach, SAFE Policy Letter, 2017 (62): p.1-6.

Chen H, Sun T, Tail risk networks of insurers around the globe: An empirical examination of systemic risk for G‐SIIs vs non‐G‐SIIs, Journal of Risk and Insurance, 2020. 87(2): p.285-318.

Li F, Li B, Xu J, Reinsurance strategy and network contagion: A macroprudential perspective, Applied Economics Letters, 2022. 29(7): p:651-656.

Jourde T, The rising interconnectedness of the insurance sector, Journal of Risk and Insurance, 2022. 89(2): p.397-425.

Denuit M, Robert C Y. Conditional mean risk sharing in the individual model with graphical dependencies[J]. Annals of Actuarial Science, 2022. 16(1): p.183-209.

Downloads

Published

2023-03-22

How to Cite

Wei, W., & Ming, L. (2023). Analysis of Systemic Risk in the Chinese Insurance Market Based on Reinsurance Networks. Advances in Social Sciences Research Journal, 10(3), 155–171. https://doi.org/10.14738/assrj.103.14208