umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Managing financial constraints: undercapitalization and underwriting capacity in Spanish fire insurance
Umeå University, Faculty of Social Sciences, Department of Economic History.
2017 (English)In: Economic history review, ISSN 0013-0117, E-ISSN 1468-0289Article in journal (Refereed) Published
Abstract [en]

Reinsurance is a vital financial device for enhancing underwriting capacity, ceding risks, and mitigating financial distress. By supplying financial resources and services, reinsurance can facilitate growth and expansion in the insurance business. Focusing on the insurance sector in the emerging Spanish economy and using a novel dataset on fire insurance companies, this article examines the role of fire insurance in the national capital formation, the importance of reinsurance as a vehicle for expanding the country's domestic underwriting capacity, and how the import of capital impacted on the balance of payment, from the introduction of the first comprehensive legislation regarding insurance in 1908 to the outbreak of the Civil War in 1936. Considering the situation of undercapitalization, the singularities of the insurance market, and the changes in regulatory schemes, we find that foreign reinsurance became a key financial vehicle for increasing underwriting capacity in Spain. We also show the struggle of an emerging market to find ways to keep the balance of current accounts and raise capital when financial infrastructure was underdeveloped. The diffusion of reinsurance networks from the core of industrial western countries towards emerging economies was one of the mechanisms for financial modernization on a global scale.

Place, publisher, year, edition, pages
2017.
National Category
Economic History
Identifiers
URN: urn:nbn:se:umu:diva-135798DOI: 10.1111/ehr.12529OAI: oai:DiVA.org:umu-135798DiVA: diva2:1106116
Available from: 2017-06-07 Created: 2017-06-07 Last updated: 2017-06-07

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Andersson, Lars Fredrik
By organisation
Department of Economic History
In the same journal
Economic history review
Economic History

Search outside of DiVA

GoogleGoogle Scholar

Altmetric score

Total: 14 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf