SystemicRiskandtheInsuranceIndustry.pdfVIP

Systemic Risk and the Insurance Industry J. David Cummins, Temple University The Brookings Institution Conference on Regulating Non-Bank SIFIs May 9, 2013 Copyright J. David Cummins, 2013, all rights reserved. Not to be reproduced without author’s permission. My Research on Systemic Risk ? Cummins, J. David and Mary A. Weiss, 2013, “Systemic Risk and the Insurance Industry,” forthcoming in Georges Dionne, ed., Handbook of Insurance, 2d ed. (Springer). ? Chen, Hua, J. David Cummins, Krupa Viswanathan, and Mary A. Weiss, 2013, “Systemic Risk and the Inter-Connectedness between Banks and Insurers: An Econometric Analysis,” forthcoming, Journal of Risk and Insurance. ? Chen, Hua, J. David Cummins, Krupa Viswanathan, and Mary A. Weiss, 2013, “Systemic Risk Measures in the Insurance Industry: A Copula Approach,” working paper, Temple University, Philadelphia ? Cummins, J. David and Mary A. Weiss, 2013, “Systemic Risk and the Regulation of the U.S. Insurance Industry,” working paper, Temple University, Philadelphia. ? Cummins, J. David and Mary A. Weiss, 2012, “Systemic Risk and the U.S. Insurance Sector,” working paper, Temple University, Philadelphia. To obtain the papers, please email: cummins@temple.edu. What Is Systemic Risk? ? The risk that an event will trigger a loss of economic value or confidence in a substantial segment of the financial system serious enough to have significant adverse effects on the real economy. Group of 10 (2001). ? Systemic financial risk involves ? A system-wide financial crisis . . . accompanied by a sharp decline in asset values and economic activity ? The spread of instability throughout the financial system (contagion) ? Sufficient impact to adversely affect the real economy World Economic Forum (2008). Sys