There is an element of demand for insurance that actually rises when risks increase. There is also the savings element of insurance which falls with an economic downturn. The extent to which the insurance industry will be impacted will depend on which of these influences predominates.
These heightened expectations are set forth in the Principles for Financial Market Infrastructures (or PFMIs), which were adopted in 2012 by the Committee on Payment and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO). 3 The PFMIs lay out comprehensive requirements for financial market infrastructures, including CCPs. Clearing and settlement activities are cross-border and indeed global in nature.