In Europe, a handful of large insurers – some part of financial conglomerates – already play a central role in the financial system, although their individual links to banks and to other market participants do not currently seem to be over-concentrated. 4 The creation of ever larger champions, however, could change that picture.
The work conducted under the Financial Stability Board on Global Systemically Important Insurers (G-SIIs) is thus highly topical, and also important from the European perspective. Understanding low interest rates 5 In this environment, I can appreciate why some in the industry may call for higher interest rates.