Insurance supervisory, new approach of the large insurers

In order to avoid problems consecutive to bankruptcy such as the case of Lehman Brothers and AIG in 2008, the supervisors of insurance companies pooled up under the International Association of Insurance Supervision (IAIS) have proposed to the authorities to identify the large insurers whose collapse is likely to trigger systemic risk. The companies selected would then be submitted to some restrictions and to stricter control. Among the selection criteria used to identify these companies we find, size, field of activity, relationship with other sectors, distribution of traditional and non-traditional operations and the possibilities of substituting one activity by the other.

In insurance, are potentially creative of systemic risks, the activities of risk transfer (securitization) and the financial insurance operations.