Zlatuše Komárková, Adam Kučera
The insurance sector’s systemic dimension, its contribution to risks to financial stability, and the choice of a suitable macroprudential framework for it have been debated within the European System of Financial Supervision for a number of years now. This article builds on the proposed changes to Solvency II in the macroprudential policy area currently under consideration at European Commission level. In its main part, the article suggests a possible design for the macroprudential policy framework in insurance. It defines the main objectives and the decision-making process for this policy and presents specific macroprudential tools in insurance. The selected tools are commented on from the perspective of the Czech National Bank as the supervisor of the Czech insurance sector and the authority responsible for the financial stability of the Czech financial system.
Issued: April 2021
Download: Thematic article on financial stability 1/2021 (pdf, 509 kB)