GFIA letter to OECD concerning contribution of insurers to economic growth and financial stabilityRelease Date: 09/02/2013 Staff Reference: Janice Hilchie
Dear Mr André Laboul,
The Global Federation of Insurance Associations (GFIA) through its 35 member associations represents insurers that account for around 88% of total insurance premiums worldwide.
GFIA welcomes this report by the OECD, as it represents an in-depth, well-researched and much-needed analysis of insurers’ contribution to economic growth and financial stability. In particular, GFIA appreciates the extensive references made in the report to a number of key features of the insurance model which ensure that the industry plays a positive role in financial stability and contributes to long-term sustainable growth through investing long-term (e.g. liability driven investment approach with expected future claims matched with generally long term assets, low liquidity risk largely as a result of payments to policyholders being contingent on occurrence of an insured event and the availability of time in the event of a claim, high degree of substitutability and the ability of a failure within the sector to be resolved in an orderly manner should the need arise).