Insurers are asking the Financial Stability Board (FSB) to recognize that major financial problems take longer to surface at insurers than at banks, and that insurers face much less liquidity risk.
The American Council of Life Insurers (ACLI), Washington, has made that plea in a letter that the ACLI submitted to the FSB, Basel, Switzerland, together with life and property-casualty groups from around the world.
The FSB and the Basel Committee on Banking Supervision have been working on draft documents that are supposed to describe measures developed countries will use to keep systemically important financial institutions (SIFIs) from crashing the financial system.
The banking supervision panel released a draft that focused mainly on banks.
The FSB tried to develop a broader document.
But the ACLI and other insurance groups say the FSB draft still does too little to take the nature of insurers into account.