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Business and Economics > Insurance

You are looking at 1 - 10 of 17 items for :

  • Type: Journal Issue x
  • Crisis management x
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Cover Policy Papers
2021 Comprehensive Surveillance Review— Background Paper on The Surveillance Priority Confronting Risks and Uncertainties
International Monetary Fund. Strategy, Policy, & Review Department
The coverage of risks has become more systematic since the Global Financial Crisis (GFC): staff reports now regularly identify major risks and provide an assessment of their likelihood and economic impact, summarized in Risk Assessment Matrices (RAM). But still limited attention is paid to the range of possible outcomes. Also, risk identification is useful only so much as to inform policy design to preemptively respond to relevant risks and/or better prepare for them. In this regard, policy recommendations in surveillance could be richer in considering various risk management approaches. To this end, progress is needed on two dimensions: • Increasing emphasis on the range of potential outcomes to improve policy design. • Encouraging more proactive policy advice on how to manage risks. Efforts should continue to leverage internal and external resources to support risk analysis and advice in surveillance.
Keywords:
baseline policy advice; fund surveillance; risk analysis; risk identification; policy recommendation; Insurance; Contingency planning; Natural disasters; Global
Cover IMF Staff Country Reports
Austria: Publication of Financial Sector Assessment Program Documentation-Technical Note on Insurance Sector—Regulation, Supervision, Recovery, and Resolution Regime Prospects
International Monetary Fund. Monetary and Capital Markets Department
This review provides an update on the Austrian insurance sector and an analysis of certain key aspects of the regulatory and supervisory regime. The note analyzes regulation and supervision in relation to key issues identified in previous Financial Sector Assessment Programs (FSAP), as well as material changes since the last FSAP. This note also covers the current situation and potential changes in the crisis management and early intervention framework of the insurance sector. It focuses on issues relevant to a long-standing policyholder protection mechanism, early intervention powers—existing and under discussion—and crisis management and resolution arrangements for insurance companies and groups. The analysis recommends that proper implementation of Solvency II needs ongoing validation and scrutiny by regulators, which could be at risk if supervisory resources with skills and expertise are not retained. Higher legal, reputational, and conduct risks are posing additional pressures to the life insurance sector. Market conduct supervision should be enhanced, with active use of enforcement powers in addition to the insights that studies launched by the government will provide.
Keywords:
ISCR; CR; risk assessment; coverage ratio; FMA resource; enforcement case; FMA discussion; FMA staff; FMA supervisor; information exchange template; insurance assets; FMA stress test; FMA contribution; FMA calculation; FMA enforcement case; FMA official; conduct risk; Insurance companies; Insurance; Solvency; Stress testing; Bank resolution framework; Global
Cover IMF Staff Country Reports
France: Financial Sector Assessment Program-Technical Note-Key Attributes of Effective Resolution Regimes for Insurance Companies
International Monetary Fund. Monetary and Capital Markets Department
This technical note explores key attributes of effective resolution regimes (KA) for insurance companies on France. The safety net in the sector is composed by two policyholder protection schemes, which can provide support in liquidation proceedings. The report highlights that there is consensus with the authorities that the new framework reflects many, however, not all elements needed for full compliance with the KAs, and the areas where further progress is needed. Alignment of the framework with KAs in terms of the institutional organization and infrastructure is high. The scope and responsibilities of the Prudential Supervision and Resolution Authority are clearly established in the law, as well as the cases when those are applicable, and its interaction with other relevant policy-making entities. The new framework targets all institutions considered systemic, given their size and other relevant features. Its’ current implementation is guided solely by the threshold in terms of total assets; any holding company, group, mutual, or foreign subsidiary above this level is subject to Recovery and Resolution Planning requirements.
Keywords:
ISCR; CR; resolution authority; resolution framework; home authority; home authorities; resolution college; resolution plan; holding company; resolution measure; insurance resolution; Bank resolution framework; Insurance companies; Legal support in revenue administration; Insurance; Bridge bank; Global
Cover Departmental Papers
Strengthening the West African Economic and Monetary Union: The Role of Fiscal and Market Institutions in Economic Stabilization
Olivier Basdevant
,
Patrick A. Imam
,
Mr. Tidiane Kinda
, and
Ms. Aleksandra Zdzienicka
West African Economic and Monetary Union (WAEMU) countries face a well-known dilemma between the need to provide shock-smoothing mechanisms and the lack of adequate mechanisms to do so. WAEMU countries are subject to frequent and, to a large extent, asymmetric shocks. They have remained poorly diversified and vulnerable to external shocks, such as changing weather conditions. In addition to limited shock-smoothing mechanisms at the regional level, WAEMU members’ ability to respond to shocks through national policies is also constrained by limited fiscal space and the need to preserve external stability—not only at the national level but also at the union level. In this context, developing a well-defined fiscal rule framework at the national level would help to build the necessary fiscal space for shock-smoothing. In addition, the development of specific shock-smoothing mechanisms—including a more developed and integrated financial sector—would also be critical. In addition, promoting financial development is also a challenge, which needs to be addressed in tandem with an adequate surveillance system. Some of these challenges have been faced by other monetary unions, such as the euro area.
Keywords:
DPPP; DP; insurance fund; government; bridge funding; WAEMU country; WAEMU authorities; WAEMU convergence criteria; WAEMU member country; WAEMU economy; Fiscal rules; Fiscal councils; Insurance; West Africa
Cover IMF Staff Country Reports
United States: Financial Sector Assessment Program-Review of the Key Attributes of Effective Resolution Regimes for the Banking and Insurance Sectors-Technical Note
International Monetary Fund. Monetary and Capital Markets Department
This Technical Note reviews the key attributes of effective resolution regimes for the banking and insurance sectors in the United States. The United States’ resolution regime for financial institutions has been significantly enhanced since the financial crisis. Over the past several years, the U.S. authorities have undertaken significant efforts to develop the capability to deploy the Orderly Liquidation Authority, if and when needed, to safeguard financial stability. Of particular importance is the development of the so-called single point of entry strategy, designed to take advantage of most systemically important financial institutions in the United States being organized under a holding company structure.
Keywords:
ISCR; CR; financial company; State insurance; bank holding company; resolution power; resolution strategy; resolution authority; resolution regime; Bank resolution framework; Insurance companies; Insurance; Bank liquidation; Bridge bank; Global
Cover IMF Staff Country Reports
Republic of Kosovo: Financial System Stability Assessment
International Monetary Fund. Monetary and Capital Markets Department
This article summarizes the financial performance and crisis management of the Republic of Kosovo. Kosovo’s economic condition shows stability in systematic risks, but it also has vulnerabilities. Kosovo banks are exposed to macrofinancial risks because of its open economy, but the Central Bank of the Republic of Kosovo (CBK) has immensely promoted the growth and stability of the banking sector. CBK should also monitor certain interest rates, tax rates, and foreign rates. The current system should allow the growth of microfinance institutions to reach the competition in the global banking sector.
Keywords:
ISCR; CR; central bank; return on equity; financial system; bank assets; interest rate; reserve fund; banking system; Commercial banks; Lender of last resort; Loans; Insurance companies; Insurance; Europe; Global
Cover IMF Staff Country Reports
Malaysia: Report on the Observance of Standards and Codes
International Monetary Fund. Asia and Pacific Dept
This report is an assessment of the state of compliance with the Basel Core Principles (BCPs) in Malaysia. Bank Negara Malaysia (BNM) employs a well-developed risk-focused regulatory and supervisory system, consisting of a hands-on and comprehensive program of onsite supervision and extensive offsite macroeconomic and microeconomic surveillance supervision. The assessment has revealed several opportunities for improvement of the regulatory and supervisory framework. The Executive Board recommends the new financial services legislation, the Financial Services Act (FSA), to address many of these gaps.
Keywords:
ISCR; CR; risk management; holding company; BNM supervisor; BNM director; BNM guideline; BNM staff members; enforcement activity; financial system; internal auditor; RBC guideline; variation margin; capital market; financial market; credit risk; hedge fund; banking sector; Insurance companies; Capital markets; Insurance; Commercial banks; Global
Cover IMF Staff Country Reports
Kingdom of Netherlands: Netherlands: Financial System Stability Assessment
International Monetary Fund
The Netherlands has been heavily affected by the global financial crisis. The “Twin Peaks” supervision model, with Netherlands Central Bank - De Nederlandsche Bank (DNB) as the prudential supervisor, and the Authority for Financial Markets (AFM) responsible for conduct-of-business supervision, was severely tested, although the case for the model remains strong. The crisis has shown that these institutions bring sizable risks, which requires careful and comprehensive monitoring and supervision. The findings of the Financial Stability Assessment Program (FSAP) are summarized. Top-down stress tests were conducted. Supervisory colleges are an important innovation to reinforce home-host coordination for supervisors of large complex financial institutions (LCFIs).
Keywords:
ISCR; CR; bank resolution operation; insolvent bank; restructuring transaction; financial system; interest rate; holding company; bank resolution; central bank; bank access; pension line; Pension spending; Insurance; Bank resolution; Housing prices; Financial sector stability; Global; Europe
Cover IMF Staff Country Reports
United States: Publication of Financial Sector Assessment Program Documentation: Financial System Stability Assessment
International Monetary Fund
Though The United States has experienced a devastating financial crisis owing to multifaceted factors, it started showing recovery. The authorities welcomed the program, which included strengthening microprudential regulation, establishing macroprudential responsibilities, strengthening market discipline, and reforming credit policies. They emphasized the need to establish a council of regulatory agencies such as the Federal Reserve and the Treasury, with a mandate for financial stability. They stressed the need to enhance crisis management, resolution, and systemic liquidity arrangements, and also to address too-big-to-fail issues and the future of the government-sponsored enterprises (GSEs).
Keywords:
ISCR; CR; state Fed-member banks; Fed lending; thrift; Fed chairman; FDIC guarantee; state thrift; thrift supervision; Loans; Securities; Commercial banks; Insurance; Europe; Global
Cover IMF Staff Country Reports
Switzerland: 2009 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Switzerland
International Monetary Fund
Switzerland is affected by the global crisis through the stock effect, the flow effect, and the trade effect. Along with a sharp contraction in exports, investments are now being postponed. Consumption has held up well so far, but as unemployment rises, household spending will lose momentum. The Swiss National Bank has appropriately loosened monetary policy, bringing the policy rates almost to zero. Maintaining financial stability will be essential for ensuring macroeconomic stability and growth in Switzerland.
Keywords:
ISCR; CR; Switzerland; introduced SNB bill; repo transaction; asset; SNB balance sheet; monetary policy stance; IMF staff projection; headline inflation; Financial sector; Income; Insurance companies; Insurance; Global; Asia and Pacific