What Drives Financial Innovation in the Insurance Industry?

Abstract

This article describes the forces that drive financial innovation in the insurance industry, as it relates to the convergence between insurance and capital markets. The authors base their analysis on general principles of supply and demand underlying financial intermediation and innovation, e.g., regulation and taxation. They also provide practical examples from both the capital and insurance markets. Finally, the article addresses the costs and benefits of capital markets‐based insurance solutions and inherent challenges to future innovation.

Citation

LASTER, D. and RATURI, M. (2002), "What Drives Financial Innovation in the Insurance Industry?", Journal of Risk Finance, Vol. 3 No. 3, pp. 36-47. https://doi.org/10.1108/eb043493