At a recent G20 meeting in Scotland, the think tank The Geneva Association urged national leaders and regulators to create distinctions between insurance and banking risks. The European Commission adopted plans to overhaul the financial supervisory system in September, though insurers and reinsurers indicated they would be under-represented in the framework. The Geneva Association noted in a letter to the G20, “There is a general consensus that the (re)insurance industry was not at the origin of the financial crisis. … Insurers and reinsurers are less exposed to liquidity risk, not highly leveraged, and less interconnected within the financial services industry.”

Distinguish Insurance Risks From Banking: Think Tank (Business Insurance 11/5/09)

November 11, 2009