- International Monetary Fund. Monetary and Capital Markets Department
- Published Date:
- October 2004
Selected Topic From the IMF’s Global Financial Stability Report
Risk Transfer and the Insurance Industry
Todd Groome Yoon Sook Kim William Lee Kazunari Ohashi Calvin Schnure Rupert Thome
© 2004 International Monetary Fund
This paper was first published as Chapter III of the April 2004 Global Financial Stability Report (GFSR), a semiannual publication that assesses global financial market developments with the view to identifying potential systemic weaknesses. The paper is the first in a series on the financial stability implications of the reallocation and transfer of risks to a variety of nonbank institutions, followed by the chapter, “Risk Management and the Pension Fund Industry,” in the September 2004 GFSR, and a forthcoming chapter on the fund management industry and the household sector in general in the March 2005 GFSR. Those two chapters are also being issued as separate papers.
The April 2004 GFSR was prepared by the International Capital Markets Department (ICM), under the direction of the Counsellor and Director, Gerd Häusler. It was managed by an Editorial Committee comprising Hung Q. Tran (Chairman), W. Todd Groome, Donald J. Mathieson, and David J. Ordoobadi. This paper was written by ICM’s Financial Market Stability Division, including contributions from Toni Gravelle, Todd Groome, François Haas, Oksana Khadarina, Yoon Sook Kim, William Lee, Kazunari Ohashi, Calvin Schnure, and Rupert Thorne. We are also very grateful for an additional contribution from Nigel Davies of the IMF’s Monetary and Financial Systems Department. Jane Harris provided expert word processing assistance. Jeff Hayden of the External Relations Department edited the manuscript and coordinated production of the publication.
This paper draws, in part, on a series of informal discussions with commercial and investment banks, securities firms, insurance companies, and credit rating agencies in France, Germany, Hong Kong SAR, Japan, Singapore, Switzerland, the United Kingdom, and the United States. The report reflects information available up to March 8.
The report has benefited from comments and suggestions from staff in other IMF departments, as well as from Executive Directors following their discussions of the Global Financial Stability Report on March 26, 2004. However, the analysis and policy considerations are those of the contributing staff and should not be attributed to the Executive Directors, their national authorities, or the IMF.