IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v30y2005i2p187-222.html
   My bibliography  Save this article

Convergence in Wholesale Financial Services: Reinsurance and Investment Banking

Author

Listed:
  • J David Cummins

    (The Wharton School, 3620 Locust Walk, 3303 Steinberg Hall-Dietrich Hall, Philadelphia, PA 19104, U.S.A.)

Abstract

One of the most significant economic developments of the past decade has been the convergence of the previously separate segments of the financial services industry – particularly the banking and insurance sectors. Convergence has been driven by increasing globalization of the financial services sector, the deregulation of financial markets, and advances in computer and modelling technologies. The shift in focus towards enterprise-wide corporate risk management solutions has created a growing demand for new risk management products. These developments provide opportunities for the traditional wholesalers of risk management products, particularly investment banks and reinsurers. The paper discusses the core competencies of banks and reinsurers and the factors needed for success in the evolving market. The discussion considers the merits of unbundling the traditional insurance value chain to create more responsive organizations and de-emphasize residual risk bearing by (re)insurers. The paper focuses on opportunities in innovative wholesale risk management products, including products that modify classic (re)insurance product models but do not access broader capital markets and risk-linked securities that access capital markets directly. The Geneva Papers (2005) 30, 187–222. doi:10.1057/palgrave.gpp.2510031

Suggested Citation

  • J David Cummins, 2005. "Convergence in Wholesale Financial Services: Reinsurance and Investment Banking," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 30(2), pages 187-222, April.
    • Handle: RePEc:pal:gpprii:v:30:y:2005:i:2:p:187-222
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v30/n2/pdf/2510031a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: http://www.palgrave-journals.com/gpp/journal/v30/n2/full/2510031a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. J. David Cummins, 2007. "Reinsurance for Natural and Man‐Made Catastrophes in the United States: Current State of the Market and Regulatory Reforms," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 10(2), pages 179-220, September.
    2. J. David Cummins & Mary A. Weiss, 2009. "Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk‐Transfer Solutions," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(3), pages 493-545, September.
    3. J. David Cummins, 2006. "Should the government provide insurance for catastrophes?," Review, Federal Reserve Bank of St. Louis, vol. 88(Jul), pages 337-380.
    4. Villegas, Andrés M. & Medaglia, Andrés L. & Zuluaga, Luis F., 2012. "Computing bounds on the expected payoff of Alternative Risk Transfer products," Insurance: Mathematics and Economics, Elsevier, vol. 51(2), pages 271-281.
    5. J. David Cummins & Philippe Trainar, 2009. "Securitization, Insurance, and Reinsurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(3), pages 463-492, September.
    6. J. David Cummins, 2008. "CAT Bonds and Other Risk‐Linked Securities: State of the Market and Recent Developments," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(1), pages 23-47, March.
    7. Elyas Elyasiani & Elena Kalotychou & Sotiris Staikouras & Gang Zhao, 2015. "Return and Volatility Spillover among Banks and Insurers: Evidence from Pre-Crisis and Crisis Periods," Journal of Financial Services Research, Springer;Western Finance Association, vol. 48(1), pages 21-52, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:30:y:2005:i:2:p:187-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.