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The convergence of capital and insurance markets – identification of drivers
Abstract
The main problem presented in this article is related to the process of the convergence of capital and insurance markets. The process of convergence is understood as a kind of inter-merger under which insurers and (other) financial institutions participate each other in their markets. This process results in the creation and application of new instruments, in this Insurance-Linked Securities (ILS) that allow to transfer insurance risk to the capital market. ILS are mainly used by insurers and (other) financial institutions, while non-financial entities use them to a lesser extent.
The purpose of this article is to identify the main drivers of the process of convergence. We propose here two groups of drivers: intermarket ones (considered from the individual perspective of each market) and intramarket ones (common to both markets). Identification and systematization of these drivers enhances a better understanding of the convergence mechanism , as well as the applicability of its effects.
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DOI: http://dx.doi.org/10.17951/h.2015.49.4.57
Date of publication: 2016-01-28 11:03:24
Date of submission: 2015-06-29 12:52:11
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Copyright (c) 2016 Joanna Katarzyna Błach, Monika Wieczorek-Kosmala
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