Insurance: Just Part of the Financial Sector?

This presentation (based on an IMF working paper) explores similarities and differences between banks and insurers and between Basel III and Solvency II and then highlights possible unintended consequences of Basel III and Solvency II being introduced at roughly the same time

[as pdf]

1Insurance: Just Part of the Financial Sector?
3Overview of IMF working paper
5The 2007 - 2009 credit crisis: timeline
6The 2007 - 2009 credit crisis: a simplified overview
7A longer-term historical perspective
8The different roles of money in the economy
9Two main roles of money / financial sector
10However, boundaries are blurred
12Typical bank and insurer business models differ
13Although noteworthy overlaps (and conglomerates!)
14Different funding bases (excluding equity)
15Different capital levels
16Different accounting bases
17Other components of the financial sector
19Basel III and Solvency II: Different histories and drivers
20Basel III and Solvency II Capital Tiering (Pillar 1)
21Calculation of Required Capital (Pillar 1)
22Risk Aggregation (Pillar 1)
24Possible unintended consequences
25Cost of capital
26Funding patterns and interconnectedness (1)
27Banks’ debt funding sources by type of investor
28Funding patterns and interconnectedness (2)
29Risk / Product transference (1)
30Risk / Product transference (2)
31Policy considerations
33Important Information

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