Financial stability (insurers and pension funds) [14]

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Bullet points include: International Association of Insurance Supervisors: Exposures potentially leading to systemic impact include: Liquidity risk, interconnectedness, lack of substitutability, other. Liquidity risk: e.g. derivatives, securities lending transactions, backing liquid liabilities with illiquid assets. Transmission channels include: Asset liquidation. Exposure channel. Can be indirect (via macroeconomic exposures) or direct (via interlinkages, so distress at one institution can propagate to rest of financial system). Critical functions: interruption systemic if important for wider functioning and large market share. Other. E.g. Cyber-risk or widespread under-reserving without possibility to reprice (c.f. EIOPA)

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