March 25, 2010
Are certain banks and insurers “too big to fail?” A global regulatory agency is denying reports that it has singled out major financial institutions—including six major insurers—for cross-border supervision.
A Financial Times report—published November 30—alleges that the Financial Stability Board (FSB) has put 30 financial services companies on a list of institutions slated for cross-border supervision exercises, all in an effort to the determine the systemic risk seen in AIG’s collapse. But the FSB has denied the report.
According to the Financial Times article the (re)insurers on the list included: AXA, Aegon, Allianz, Aviva, Zurich and Swiss Re.
In September, the FSB issued a set of policy recommendations to G20 leaders noting that, “detailed implementation of the full set of needed reforms will take time and perseverance.”
The recommendations lay the framework for a stronger financial system, including measures to: strengthen the global capital network for banks; establish new minimum global liquidity standards; reduce systemic risk of key institutions, and improve both accounting standards and compensation practices. The measures also called for expanded oversight of financial institutions and adherence to international standards.
This story was originally published by Canadian Insurance Top Broker.