^aGovernor, European Central Bank, Kaiserstrasse 29, D-60066 Frankfurt am Main, Germany. E-mail: gilles.noblet@ecb.int

^* This article is a reworked version of the speech that Mr Trichet delivered as a guest speaker at the 31st General Assembly of the International Association for the Study of Insurance Economics that took place in Madrid from 26 to 29 May 2004.

Abstract

This paper focuses on the relevance of the insurance sector for the overall stability of the financial system by outlining the sources of risk and vulnerability facing the industry. The growing interlinkage between insurers and banks is analysed. The paper concludes by identifying some key challenges for the insurance sector.