Research Center

Insurance

• A Report to the Federal Insurance Office

  The Federal Insurance Office is required by the Dodd-Frank Act to submit a report to Congress, by January 2012, recommending changes to modernize and improve insurance regulation in the United States. This paper provides analysis and recommendations of the Networks Financial Institute at Indiana State University on the issues that the Congress has asked to be a part of the study. August 2011. NFI.

• The Implications of Financial Regulatory Reform for the Insurance Industry

  The impact of the new regimes of Solvency II for insurers in the European Union and Basel III for international banks should be assessed looking at the impact on the insurance industry. This paper from the Institute of International Finance’s Insurance Working Group, in collaboration with Oliver Wyman, lays out several key areas which should be considered before the regulations are finalized. August 2011. IIF.

• Regulatory Issues in Insurance.

  The business model of insurers is fundamentally different from that of banks. First, unlike banks, insurers do not depend on short-term funding. Second, insurers can fail without threatening the stability of the financial system because their liabilities can be run off over an extended period of time. Emergency measures to save an insurer at risk are therefore not needed to protect the financial system or the insurance industry. November 2, 2010. Swiss Re

• Striking the Right Balance: Insurance and Systemic Risk Regulation.

  The recent financial crisis highlighted the need for systemic risk monitoring. As a result, systemic risk supervision is likely to increase globally. However, the business model of insurance, which weathered the crisis relatively well, differs fundamentally from that of the banking sector, from which many of the problems of the crisis arose. Insurers and reinsurers, therefore, should not be subject to systemic risk supervision. Group supervision efforts, however, should be pursued. 2010. Swiss Re.