G-SIIs vs. G-SIFIs: Lines blur between insurance and banking

July 2012


As a part of a global initiative to help prevent a repeat of the 2008 financial crisis and reduce the threat posed by global systemically important financial institutions (G-SIFIs), the International Association of Insurance Supervisors (IAIS) has released its proposed assessment methodology for the identification of global systemically important insurers (G-SIIs). Under the purview of the Financial Stability Board (FSB) and the G20, the IAIS has been charged with the task of recommending which insurance companies should be deemed G-SIIs and ultimately designated as such by the members of the G20.

In its assessment methodology, the IAIS devotes discussion toward the deference shown to the jurisdictional regulator and the need to share information amongst regulatory agencies. Furthermore, the proposed criteria attempts to identify any insurers whose distress or disorderly failure—due to their size, complexity, and interconnectedness—would cause significant disruption to the global financial system and economic activity.

To read this FS Regulatory Brief, please click here.

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