ESRB's buffer plan would worsen systemic risk – insurers

Industry and regulators at loggerheads over pro-cyclicality

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Many insurance risk managers read the European Systemic Risk Board's (ESRB) December 16 report on insurance regulation with the tale of Chicken Little in mind – a story synonymous with hyperbole and overstatement about a chick who thinks the sky is falling down when an acorn falls on its head.

For insurers, the ESRB's proposals for counter-cyclical buffers and enhanced liquidity supervision seemed a massive overreaction and a fundamental misunderstanding of the risks insurers pose to the wider

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