Financial crises, globalization, and insurer performance: Some international evidence

This study provides empirical evidence regarding the impact of measures concerning insurance activity on the likelihood of financial crises. Based on a large dataset covering insurance firms from 30 selected OECD countries and a probit model that regresses a crisis variable on firm-specific and country-specific factors, the results show that a higher level of insurance firm’s performance is associated with a lower likelihood of a financial crisis. However, higher degrees of financial liberalization and public governance increase such a likelihood. The findings herein are particularly relevant for policymakers and life insurance supervisors.