Insuring against the risk from insurance

The industry did better than banks in the crash, but next time could be different.
  • 15 December 2017

Compared with the banks, insurance companies withstood the calamity of 2008 pretty well. American International Group Inc. was the main exception -- it needed an enormous bailout -- but the rest of the industry was spared the worst. Does this mean that insurance companies pose no great challenge for financial regulators?

It doesn't. The insurance business is posing a bigger systemic risk than it used to. Regulators need to pay closer attention.

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