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.
Insurers may face orders on 'collective' risks in plan by global standards body
9 November 2018 7:39am