Financial convergence at the world financial market: pension funds and insurance entities prospects: case of China, EU, USA

Abstract

Purpose − to find whether large international institutional investors regardless of their country of origin due to the influence of external factors demonstrate convergence on some basic performance indicators. Research methodology is based on testing the set of selected entities for sigma convergence. The paper presents an empirical analysis of financial convergence for autonomous pension funds and insurance corporations of China, the EU and the USA. Findings − the insurance segment of the world financial market is more converged; however, current pension reforms in many countries is supposed to and must unify the requirements for both market segments and will lead to even greater convergence between pension funds and insurance corporations. Practical implications − results of the research are another step towards understanding the convergence processes, which are an objective trajectory for the development of the modern global financial market. Originality/Value − found intersegment convergence of pension and insurance entities, which needs further research.