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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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