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ESRB (2018)Macroprudential provisions, measures and instruments for insurancehere

Executive Summary (partial)

"Given the importance of the (re)insurance sector, a comprehensive regulatory framework requires tools targeting the key systemic risks of (re)insurance. A healthy (re)insurance sector is essential for the functioning of a modern market economy and contributes to economic growth and financial stability. A comprehensive regulatory framework is needed to help ensure that the sector can fulfil its essential role, even during times of crisis. Such a framework consists of a number of elements that complement each other: microprudential regulation and supervision protect policyholders and make individual (re)insurers safer, recovery and resolution regimes provide legal certainty when an (re)insurer gets into trouble and ensure that failure is orderly, and macroprudential policy looks beyond individual (re)insurers and deploys tools that target systemic risks. Against this backdrop, this report informs the ongoing discussions and review of Solvency II."


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