The financial strength of long-term insurers in South Africa was assessed as being generally sound, based on the capital-adequacy levels. Other financial soundness indicators for typical long-term insurers, however, suggest that this sector continued to experience some strain. Financial conditions in the short-term insurance sector also deteriorated during the fourth quarter of 2009.
As it has been pointed out in many occasions – like the IMF Seminar “Rethinking Macropolicy III; Progress or Confusion?” – we may not know exactly how to best use macroprudential instruments, but we know that we are on the right track." To sum up. I called for some flexibility, as systemic risks and banking structures differ from one country to another.