SAFE Lunchtime Series: Insights on Systemic Risk in the Insurance Sector
Nathalie Berger, Head of Unit Insurance and Pensions, DG FISMA, European Commission
Helmut Gründl, Chair of Insurance and Regulation, Goethe University, ICIR and SAFE
Tom Wilson, CRO, Allianz SE
Moderator: Jozefina Kontić, ICIR
This panel will discuss the role of insurance companies for the propagation of economic shocks. The focus will lie on two aspects in particular: the complexity and opacity of insurance companies on the one hand, and the diversification potential of insurance activities in terms of systemic risk on the other hand. While the first part covers the measurement of systemic risk and unveils a long-term systemic impact of shocks, the second part illustrates how insurance companies can actively lower systemic risk by adjusting the mix of their insurance business. These topics have substantial implications for the macro-prudential regulation of insurers, also in the light of the recent development of an insurance capital standard (ICS) for internationally active insurance groups.
Reference will be made to the ICIR Research Working Paper 30/17 “Diversification of Business Activities and Systemic Risk” by Christian Kubitza and Fabian Regele, and the ICIR Research Working Paper 20/16 “Systemic Risk and Late Resolution of Economic Shocks” by Helmut Gründl and Christian Kubitza.
The SAFE Lunchtime Series in Brussels aims to foster debates on topical issues. We would be pleased to welcome you to this discussion.