Financial stability (insurers and pension funds) [5]

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Bullet points include: Earlier systemic crises included e.g. Savings and Loans Crisis, 1929 Wall Street Crash, LTCM, Continental Illinois (‘Too Big To Fail’), LDC Debt Crisis. 2007-2009 GFC particularly impacted the banking sector (and related areas such as ‘shadow banking’) as did many previous systemic crises. But regulators don’t think insurers are immune from systemic risk. C.f. AIG (although the insurance industry argue that its near failure wasn’t insurance related), some EU insurers during the GFC (particularly ones with significant CDO / CLO exposures) and e.g. ESRB December 2015 Report on systemic risks in the EU insurance sector (including exposure to long-term interest rates: ‘low for long’). Ignoring possible ways in which systemic risks might influence, be magnified by or even possibly be created by insurers may focus too much on solving the last crisis rather than mitigating the next one

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