## Insurance and Issues in Financial Soundness

_IMF Working Papers, July 1, 2003_

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## Bibliographic details
- Authors: Udaibir S Das, Richard Podpiera, Nigel Davies
- Published: July 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451856002.001

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### Overview
- Authors: Udaibir S Das, Richard Podpiera, Nigel Davies
- Date: July 1, 2003
- Paper type: IMF Working Papers, Working Paper No. 2003/138
- Pages: 44
- Volume: 2003
- Issue: 138
- DOI: https://doi.org/10.5089/9781451856002.001
- Stock No: WPIEA1382003
- ISBN: 9781451856002
- ISSN: 1018-5941

### Purpose and scope
- Explores insurance as a source of financial system vulnerability.
- Provides a brief overview of the insurance industry and reviews the risks it faces.
- Reviews several recent failures of insurance companies that had systemic implications.
- Builds on experience from the Financial Sector Assessment Program (FSAP) to propose indicators for surveillance of financial soundness of insurance companies and the insurance sector as a whole.

### Key findings and analysis
- Assimilation of banking-type activities by life insurers appears to be the key systemic vulnerability.
- The paper documents and reviews risks faced by the insurance industry and examines recent insurer failures with systemic implications.
- Emphasizes the need for surveillance tools tailored to insurance-sector specificities, building on FSAP experience.

### Proposed surveillance approach
- Proposes key indicators that should be compiled and used for surveillance of financial soundness of insurance companies and the insurance sector as a whole.

### Subjects and thematic keywords
- Subjects: Capital adequacy requirements; Commercial banks; Financial institutions; Financial regulation and supervision; Financial sector policy and analysis; Financial soundness indicators; Insurance; Insurance companies
- Keywords: asset risk; banking sector; Capital adequacy requirements; Commercial banks; current liabilities; economic expansion; Europe; financial crisis; financial situation; Financial soundness indicators; financial stability; financial system; insurance; Insurance companies; management risk; market risk; market share; market value; net premium; North America; pass-through products; retention ratio; return on assets; return on equity; soft market; soundness indicators; WP

*Source: IMF Working Paper "Insurance and Issues in Financial Soundness", Udaibir S Das, Richard Podpiera, Nigel Davies, Working Paper No. 2003/138, July 1, 2003.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/insurance-and-issues-in-financial-soundness-16524_