Strategies of counteracting the systemic risk in the insurance sector Cover Image

Strategie przeciwdziałania ryzyku systemowemu w sektorze ubezpieczeń
Strategies of counteracting the systemic risk in the insurance sector

Author(s): Katarzyna Chojecka
Subject(s): Civil Law, Law on Economics
Published by: Polska Izba Ubezpieczeń
Keywords: insurance; reinsurance; systemic risk; macroprudential supervision; EIOPA; financial crisis; contagion effect; resolution

Summary/Abstract: The central point of macroprudential policy is the problem of the systemic risk existing in the financial sector. The whole concept spreaded after the global financial crisis 2007–2009, during which the collapse of strategically important banks has caused the massive contagion in the entire global financial market. Although the systemic risk largely concerns banks and macroprudential policy concentrates on supervising the banking sector, the problem can also be assigned to the insurance market.The article describes the problem of the systemic risk in the insurance sector. In the first part, the author indicates the manners in which the systemic risk is defined and its definitions in the law. The next part concerns the systemic risk in the insurance sector, its roots and potential ways of its mitigation. The third part points out the concepts of regulating the systemic risk in the insurance sector. In conclusion, the author attempts to consolidate existing views and postulates for the insurance market in the future.

  • Issue Year: 2019
  • Issue No: 2
  • Page Range: 73-86
  • Page Count: 14
  • Language: Polish