¹Counsellor and Director, International Capital Markets Department, International Monetary Fund, Washington DC

^*The views expressed are those of the author, and do not necessarily reflect the views of the IMF.

Abstract

The insurance industry has become more important for systemic financial stability. As a result, the supervision and disclosure of financial risks of insurance companies need to be strengthened. The insurance industry's increasing systemic importance also suggests that there is a need to search for some middle ground in the discussion of fair value accounting to mitigate potentially destabilizing financial volatility.