Systemic Risk And The U.S. Insurance Sector
This paper examines the potential for the U.S. insurance industry to cause systemic risk events that spill over to other segments of the economy. The authors examine primary indicators that determine whether institutions are systemically risky as well as contributing factors that exacerbate vulnerability to systemic events. Evaluation of systemic risk is based on a detailed financial analysis of the insurance industry, its role in the economy, and the interconnectedness of insurers. The primary conclusion is that the core activities of the U.S. insurers do not pose systemic risk.