Application paper on macroprudential supervision : adopted by the Executive Committee on 27 August 2021
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<subfield code="a">Insurers provide financial and economic functions that support economic activity by contributing to the flow of savings into investments and enabling risk transfer by assuming the risks of households and businesses in return for a premium. In essence, the core business of an insurer is exposed to various types of inherent risks. Macroprudential supervision is aimed at identifying and, where necessary, addressing both vulnerabilities of individual insurers and the insurance sector to shocks from the external environment (inward risks) and the build-up of systemic risk at the individual insurer level or within the sector as a whole that may be transmitted to the external environment (outward risks).</subfield>
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