NU Online News Service, June 18, 12:09 p.m. EDT
The Geneva Association, International Association for the Study of Insurance Economics Body, said it supports a study by the International Association of Insurance Supervisors (IAIS) about systemic risk in the insurance industry.
The IAIS concluded the global insurance industry "is susceptible to systemic risks generated in other parts of the financial sector," but "there is little evidence of insurance either generating or amplifying systemic risk."
The IAIS study follows a similar one in March done by the Geneva Association, which calls itself the leading international insurance think tank for strategically important insurance and risk management issues.
Both associations are looking to assist the Financial Stability Board (FSB)–an international body established to promote regulatory, supervisory and other financial sector policies–which will report soon to the leaders of the G-20. The FSB was established in April last year and tasked with promoting global financial stability. The United States is a member.
The Geneva Association has asked the FSB to take note of the conclusions and recommendations in the IAIS report. Geneva said some of the conclusions offered by IAIS on systemic risk differ from its own, but the association "welcomes the fact IAIS took careful note of the insurance business model" to "propose supervisory enhancements which are broadly supported by the industry."
The IAIS also recommends "stronger risk management and enhanced approaches to resolvability to minimize adverse externalities."
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