TAILIEUCHUNG - Insurance and Financial Stability

On 1 July 2007 a Polish-Macedonian agreement on social security entered into force. It replaced an agreement between the Government of the Polish People’s Republic and the Gove- rnment of the Federal People’s Republic of Yugoslavia of 1958. The agreement between the Republic of Poland and the United States of America signed in Warsaw on 2 April 2008 and the administrative arrangement on its application, signed in Warsaw on 2 April 2008, entered into force on 1 March 2009. On 2 April 2008 an agreement on social security was signed with Canada and on 25 Febru- ary 2009 with the Republic of Korea. Draft. | International Association of Insurance Supervisors Insurance and Financial Stability International Association of Insurance Supervisors IAIS November 2011 Table of content 1. Introduction and executive 2. Salient insurance The insurance business The funding The insurance balance 3. The business spectrum of insurers and insurance The traditional insurance Non-traditional and non-insurance business Interim 4. Market structure and industry Market Industry size by assets and market 5. Insurance in the financial The investment Insurers and systemic 6. Potentially systemic insurers and policy Identifying systemic Policy 7. Concluding A1 Insurance runs in Hong Kong and A2 State intervention in the A3 The Failure of AIG s CDS A4 Swiss Re s experience in CDS A5 Equitable A6 A7 Securities lending at AIG . 44 A8 Market contagion caused by fire sales . 45 A9 The failure of 2 47 1. Introduction and executive summary 1. This paper presents a supervisory perspective on the re insurance sector and on financial stability issues. It analyses the sector s role in the financial markets including its interaction with other financial institutions and its impact on the real economy. In addition the International Association of Insurance Supervisors IAIS endeavours to clarify the rationale of its proposed methodology to identify any institutions whose disorderly failure because of their size complexity and systemic interconnectedness would cause significant disruptions to the wider financial system and economic activity. 1 2. The business model exposes insurers to unique risks which are not typically .

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