Insurance market regulation: Catastrophe risk, competition, and systemic risk

Abstract

Insurance regulation has long been a subject of considerable interest to academics, policymakers, and other stakeholders in the insurance industry. Among the areas explored by academics over the years, there are three topics of particular importance that have significant implications for the regulation of insurance companies and markets: (1) catastrophe risk, (2) competition, and (3) systemic risk. This chapter provides an overview of insurance regulation and discusses key issues that it faces and how it has responded to these issues including the role of competition, increasing catastrophe risk, and the reemergence of systemic risk in financial markets and its implications for insurance regulation.