A Study On Systematic Risk Spillover Effects Of External Systems To Insurance Industry

The subprime mortgage cris is that broke out in 2008 spread rapid ly a mong different financ ial inst it ut ions and different fina ncia l markets,and finally triggered a global fina ncia l cris is.At the same t ime,with the developme nt of financ ial liberalizat ion and financ ia l integrat ion,the synergies between financia l markets are increasingly strengt hened and the linkages are comp lex.This has led to increased attent ion to systemat ic risk spillovers between financ ia l instit ut ions and financ ial markets.In recent years,with t he rapid development o f the ins urance ind ustry,the posit ion of insura nce in the natio nal economy has become more and more important.As a result,the systemic r isks of t he insura nce industry ha ve also received increasing attent ion.As an important component of the nat iona l economy and the financ ial system,the systemic risks of insurance ind ustry is not only related to the operating condit ions of inter nal agencies but also affected by the external environme nt.As an important topic of industry risk prevent ion,the systemic risk of the ins urance industry currently focuses on the overflow of its syste mic risk among agenc ies wit hin t he industry,and there is less research on risk spillovers between the insurance industry and external systems.Therefore,this artic le will focus on the external system's spillover effect on the systemic risks of the insurance industry.This study of r isk spillovers between external systems and the insurance industry not only he lps to more comprehens ive ly explore the ins ur ing mechanis ms of insurance systemic risk,but also helps insurance companies and regulators to more effect ive ly prevent and control systemic r isks.This paper introduces the risk Granger causality test method in the infor mat ion overflow inspectio n system,and examines whether there are systemat ic risk spillo vers and risk spillovers direction between the banking,secur it ies and real estate industr ies and the insurance industry.This paper uses GARCH-CoVaR method to measure the risk spillover intens it y of t hese three industries to the insura nce industry.The results show tha t: Under extreme risk condit ions,the banking,secur it ies and real estate industr ies have a significant r isk spillover effect on the ins urance industry.At the sa me time,the study finds that the banking industry has the greatest risk spillover effect on t he ins urance industry,followed by the secur it ies industry,and the weakest in the real estate industry..Fina lly,based on the spillo ver path of the external syste m to the systemic risk of the insurance industr y,this paper proposes targeted preventio n a nd control of the systemic risks of the insurance industry.