But the interaction between insurers and pension funds, financial markets, banks and other financial intermediaries has been growing considerably over time. Today, therefore, this traditional view needs to be challenged. I would like to mention three main reasons why insurance companies and pension funds can be important for systemic financial stability: their size, their interconnectedness and the economic function of insurance.
Let me talk first about size. Insurers and pension funds are very large investors in financial markets. The growing role of fully-funded pension systems worldwide will increase this trend. Collectively within the euro area, their investment amounted to € trillion at the end June 2009.