HLA could incentivise systemic activity – Swiss Re

lutz-wilhelmy-swiss-re
Lutz Wilhelmy, Swiss Re

A flaw in the formulation of higher capital charges for global systemically important insurers (G-Siis) could incentivise firms to increase rather than reduce systemic activity, according to Lutz Wilhelmy, head of governmental affairs at Swiss Re.

By linking the calibration of the higher loss absorbency (HLA) capital requirement to the riskiness of G-Siis compared with each other, the measure makes it rational for firms collectively to increase non-traditional, non-insurance activity, he says.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: