The International Association of Insurance Supervisors (IAIS) has released its initial analysis of the relationship between the insurance sector and systemic risk, titled Systemic Risk and the Insurance Sector (analysis). The purpose of the analysis is to indentify challenges which insurance regulators face which are different to regulators of other financial institutions.

These challenges include the way in which systemic reinsurance risk in the insurance sector does not typically generate immediate shock effects as with other industries, but instead plays out over a long time horizon. Furthermore, the business model of insurance means that policy solutions for systemically risky activities are likely to differ between sectors.