Non-BankFinancialInstitutionsPPT.pptVIP

Non-Bank Financial Institutions Week 3 – September 14, 2005 Non-Bank Financial Institutions Insurance-type Life and property and casualty Pension funds Asset management firms and funds Securities firms Others Finance companies Mortgage bankers Government-sponsored agencies Insurance Liabilities Promise to pay depending on contingency Life - Pay upon death, or retirement Property and casualty - Pay on occurrence of accident or loss due to theft or hazard (fire, weather, earthquake, flood) Differences between life and accident Life probabilities known with accuracy Casualty has two risks: incid