Analysing the determinants of insolvency risk for general insurance firms in the UK
利用515家英国一般保险公司30年数据，研究宏观经济和公司特定因素对破产风险的影响，发现业务线、再保险水平和违约聚集效应均显著影响风险，对监管有参考价值。
This paper estimates a reduced-form model to assess the insolvency risk of General Insurance (GI) firms in the UK. In comparison to earlier studies, it uses a much larger sample including 30 years of data for 515 firms, and also considers a much wider set of possible determinants of insolvency risk. The empirical results suggest that macroeconomic and firm-specific factors both play important roles. Other key findings are the following: insolvency risk varies across firms depending on their business lines; there is default clustering in the GI industry; different reinsurance levels also affect the insolvency risk of insurance firms. The implications of these findings for regulators of GI firms under the newly launched Solvency II are discussed.