Systemic rules for insurers and funds should be mutually coherent

With insurance growing increasingly similar to asset management in many markets, standard setters should keep an eye on the consistency of the systemic risk frameworks being developed for the two sectors. Where approaches might diverge, we should ask whether those differences make sense.

Dissimilarities remain between the two sectors, of course. Life insurers, unlike investment funds, tend to underwrite market risk in their savings products. Indeed, the low interest rate environment has raised