Oliver Wyman has released a joint report with the Geneva Association on the impact of potential insurance company failures on the financial system and broader economy.
The report, Insurance and Resolution in Light of the Systemic Risk Debate, finds that the recovery or resolution of failed insurers can be managed in an orderly fashion under existing regimes and would have not have a disruptive effect on the global financial system. The report assesses the effects of severe stress scenarios on insurers and shows how the outcomes could be addressed using existing supervisory and regulatory mechanisms. The report also provides a set of policy recommendations to further strengthen international resolution regimes. The perspectives in this report are relevant to ongoing stability discussions held by the G-20, FSB and IAIS.
