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Reference | Title | Link |
French, A., Vital, M. and Minot, D. (2015) | Insurance and Financial Stability | here |
Summary
"Insurance companies play an important role in supporting economic activity. But insurers are exposed to a number of risks and can become distressed or fail.
This [Bank of England] article considers a number of channels through which insurance companies could have adverse effects on financial stability, including: how insurer distress or failure might disrupt the provision of critical services to the real economy; and how their behaviours can propagate systemic risk in the financial system. The [Bank of England’s] Financial Policy Committee has an ongoing workplan to assess the extent of risks to financial stability from insurance companies’ activities." |
Additional Nematrian Commentary
This article summarises some policy maker views on ways in which insurers might contribute to financial instability |
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