Insurers may face orders on 'collective' risks in plan by global standards body

9 November 2018 7:39am
Insurers could face orders to cut back on commonly held assets such as government bonds, out of fear about collective risks to the financial system, under a proposal due next week from global standard-setters.

The International Association of Insurance Supervisors’ proposal will seek to go beyond rules designed to ensure the health of individual insurers, a senior regulator told a Luxembourg conference* today. The proposal will call for “collective actions” to be taken as soon as 2020 when an activity deemed low-risk for a single company is magnified across the industry.

“The policy measures we are thinking about are focused on the risk exposure,” for a more “holistic” approach, said Alberto Corinti, chairman of the IAIS’s Macroprudential Committee and board member at the Italian regulator, the Institute for the Supervision of Insurance.