Corporate Governance in the European Insurance Industry [electronic resource] /
Ricci, O.author.
Corporate scandals at the beginning of the 2000s and the recent global financial crisis have renewed the attention of academics, regulators and practitioners to agency problems and possible solutions in the financial sector. Since that time, much thought has been given to new regulations and international corporate governance standards, in an attempt to guarantee prudent and sound financial management. While much of this thought has been focussed on the banking sector, Corporate Governance in the European Insurance Industry provides a unique perspective on the subject, focusing on the insurance industry and asking some important theoretical and practical questions. Are insurance companies systemically relevant, and does the existing regulation provide adequate protection for customers and guarantee financial stability? Is regulatory intervention consistent with economic and financial theories? And crucially, is this intervention consistent with empirical evidence of the behaviour and performance of insurance companies? The first part of this book provides the reader with a comprehensive review of current academic studies on the topic; the second part moves on to examine the regulation of corporate governance and its recent evolution after the global financial crisis. Within a context of vivid debate in the financial services industry, the issues explored in this book will be of value to anyone with an interest in insurance corporate governance and regulation. It is also a key source of research for academics in insurance and finance, as well as PhD students and post-graduate students in relevant subjects.
Description based upon print version of record.
Cover; Half-Title; Title; Copyright; Contents; List of Boxes; List of Figures; List of Tables; Introduction: Aim and Structure of the Book; I.1 What is the importance of the insurance industry to the whole economy?; I.2 The European insurance industry; 1 The Academic Perspective; Introduction; 1.1 Alternative organizational structures in the insurance industry; 1.1.1 The ownership structure as a response to agency problems; 1.1.2 The managerial discretion hypothesis; 1.2 Internal corporate governance; 1.2.1 Board of Directors (BoD): composition and organization
1.2.2 Management compensation, ownership and turnover1.3 External corporate governance; 1.3.1 Block-holders and institutional investors; 1.3.2 Non-equity stakeholders; 1.3.3 Market discipline; 1.3.4 Proxy contests and takeovers; 1.4 Conclusions; 2 The Regulatory Perspective; Introduction; 2.1 The impact of the global financial crisis on the insurance industry; 2.2 Are insurers systemically relevant?; 2.2.1 The identification of Global Systemically Important Insurers (G-SIIs); 2.3 The regulatory response - non-binding guidelines from international organizations: IAIS and OECD
2.3.1 The 2004 IAIS principles and the 2005 OECD guidelines2.3.2 The revision of IAIS and OECD principles after the crisis; 2.4 The regulatory response - the EU regulatory intervention; 2.4.1 The CRD IV provisions on corporate governance; 2.4.2 The system of governance under Solvency II; 2.4.3 Heterogeneity across EU Member States; 2.5 Conclusions; Final Remarks; Regulation; References; Index
Includes bibliographical references and index.
Corporate scandals at the beginning of the 2000s and the recent global financial crisis have renewed the attention of academics, regulators and practitioners to agency problems and possible solutions in the financial sector. Since that time, much thought has been given to new regulations and international corporate governance standards, in an attempt to guarantee prudent and sound financial management. While much of this thought has been focussed on the banking sector, Corporate Governance in the European Insurance Industry provides a unique perspective on the subject, focusing on the insurance industry and asking some important theoretical and practical questions. Are insurance companies systemically relevant, and does the existing regulation provide adequate protection for customers and guarantee financial stability? Is regulatory intervention consistent with economic and financial theories? And crucially, is this intervention consistent with empirical evidence of the behaviour and performance of insurance companies? The first part of this book provides the reader with a comprehensive review of current academic studies on the topic; the second part moves on to examine the regulation of corporate governance and its recent evolution after the global financial crisis. Within a context of vivid debate in the financial services industry, the issues explored in this book will be of value to anyone with an interest in insurance corporate governance and regulation. It is also a key source of research for academics in insurance and finance, as well as PhD students and post-graduate students in relevant subjects.
Risk management.
Corporate governance.
Insurance.
Economics.
Management science.
Risk Management.
Corporate Governance.
Insurance.
Economics, general.