Risk management regulation and corporate demand for reinsurance in the Spanish autarky (1940-1952)

This paper examines the changes to reinsurance regulation implemented during the Spanish autarky to analyze how the restriction of imports of financial services affects the performance of the insurance and risk management industry. We build a novel dataset on domestic insurers and reinsurers to iden...

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Detalles Bibliográficos
Autores: Gutiérrez González, Pablo, Pons Pons, Jerònia
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/162336
Acceso en línea:https://hdl.handle.net/11441/162336
https://doi.org/10.1344/rhiihr.v31i84.31954
Access Level:acceso abierto
Palabra clave:Insurance
Risk management
Reinsurance
Regulation
Spain
Seguro
Gestión de riesgos
Reaseguro
Regulación
España
Descripción
Sumario:This paper examines the changes to reinsurance regulation implemented during the Spanish autarky to analyze how the restriction of imports of financial services affects the performance of the insurance and risk management industry. We build a novel dataset on domestic insurers and reinsurers to identify the effects of the barriers to purchasing foreign reinsurance on corporate strategies and ultimately, on the determinants of reinsurance demand. We find that, in spite of a chronic dependence on foreign risk exchange networks, Spanish insurers faced this period of isolation by means of an intensive use of captive reinsurance. This strategy helped to alleviate financial distress and resulted in the substitution of foreign reinsurers by domestic companies, as far as the restrictive regulation was in force.