Systemic risk rules threaten to undermine insurance industry

Insurers continue to worry they will be badly hit by inappropriate regulations. Swiss Re's Chairman Walter Kielholz argues the insurers' case in the December issue of the Global Risk Regulator magazine.

The world’s insurance industry fears that many regulators are under political pressure to identify and penalise some insurers as potential threats to the financial system. That’s despite encouraging signs that key supervisors, including the IAIS, have in fact taken the view that insurance doesn’t represent a systemic risk.

In this article, Walter Kielholz points out that we are facing a severe crisis of faith in economic policy, which is undermining business confidence. In times like these, it becomes even more important that economic and fiscal policy be appropriate, stable and credible.

Accordingly, he argues, supervisors and policymakers need to think hard and consider the cumulative and cross-sectoral impact of regulatory changes so that the financial system may continue to support the quest for growth.

Download Global Risk Regulator article (PDF, 138kb)

Published 5 Jan 2012

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