The convergence of capital and insurance markets – identification of drivers

Joanna Katarzyna Błach, Monika Wieczorek-Kosmala

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.


Keywords


convergence; capital market; insurance market;

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DOI: http://dx.doi.org/10.17951/h.2015.49.4.57
Data publikacji: 2016-01-28 11:03:24
Data złożenia artykułu: 2015-06-29 12:52:11


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