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Systemic Risk, Pension Funds, Insurers, Asset Managers [13]

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Bullet points include: Circa 9 insurers deemed globally systematically important, subject to additional Higher Loss Absorbency (HLA) requirements and to: Enhanced group-wide supervision (including group-wide supervisor to have direct powers over holding companies and to oversee the development and implementation of a Systemic Risk Management Plan and a Liquidity Management plan). Group-wide resolution planning and resolvability assessments. Classification rationale similar in theory to banks but weightings to factors differ and are currently under review, see IAIS (2015). Views differ about appropriateness of systemic risk classification, IAIS stance: “Little evidence.. traditional insurance generates.. systemic risk”. Hence greater focus on non-traditional insurance / non-insurance (NTNI) activities, but exactly how should this be defined? Financial guaranty insurance, credit default swaps, derivatives trading? Variable annuities?

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