Insurance and Issues in Financial Soundness

Author/Editor:

Udaibir S Das ; Richard Podpiera ; Nigel Davies

Publication Date:

July 1, 2003

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability. Building on this experience and the experience gained under the FSAP, the paper proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.

Series:

Working Paper No. 2003/138

Subject:

Capital adequacy requirements Commercial banks Financial institutions Financial regulation and supervision Financial sector policy and analysis Financial soundness indicators Insurance Insurance companies

English

Publication Date:

July 1, 2003

ISBN/ISSN:

9781451856002/1018-5941

Stock No:

WPIEA1382003

Pages:

44

Please address any questions about this title to publications@imf.org