The identification of systemically important insurers

Abstract

The global financial crisis has forced the need for rapid identification of global systemically important financial institutions (G-SIFIs) and to take the necessary measures to reduce the risk of distress or failure. In these institutions are included the insurers.
This paper describes of the methodology of identification of global systemically important insurers (G-SIIs) developed by the IAIS. The assessment methodology is based broadly on that used to identify globally systemically important banks (G-SIBs) but tailored to the insurance industry. The methodology IAIS to suggest that traditional insurance business does not generates or does not amplifies systemic risk. Accordingly, in determining whether an insurer is a  G-SIIs, more emphasis is placed on those insurers who participate in non-traditional and non-insurance activities, such as derivatives trading without hedging purposes.