Inflation target and International Association of Insurance Supervisors: Difference between pages

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1. ''UK - Bank of England''.
''Regulation - supervision - insurance.''


Guidance from a central government to an operationally independent central bank, in relation to inflation in its jurisdiction.
(IAIS).


The IAIS is an international body representing insurance regulators and supervisors.


:<span style="color:#4B0082">'''''Inflation target - UK - Bank of England'''''</span>


:"To keep inflation low and stable, the Government sets us an inflation target of 2%. This helps everyone plan for the future.
The IAIS aims to:


:If inflation is too high or it moves around a lot, it’s hard for businesses to set the right prices and for people to plan their spending.
*Promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders; and
*Contribute to global financial stability.


:But if inflation is too low, or negative, then some people may put off spending because they expect prices to fall. Although lower prices sounds like a good thing, if everybody reduced their spending then companies could fail and people might lose their jobs.


:If we miss the inflation target by more than 1 percentage point either side of the target, we must tell the Government why."
The IAIS is hosted by the Bank for International Settlements.


:''Bank of England - 2021''.


 
==See also==
2.
*[[Bank for International Settlements]]  (BIS)
 
*[[Common Framework]]
Similar goals and measures in other jurisdictions.
*[[Group-wide supervisor]]
 
*[[Insurance]]
 
*[[Insurance Capital Standard]] (ICS)
:<span style="color:#4B0082">'''''European Central Bank's monetary policy strategy'''''</span>
*[[Regulation]]
 
*[[Solvency II]]
:"The Governing Council [of the ECB] considers that price stability is best maintained by aiming for a 2% inflation target over the medium term.
*[[Supervision]]
 
:This target is symmetric, meaning negative and positive deviations of inflation from the target are equally undesirable.
 
:When the economy is operating close to the lower bound on nominal interest rates, it requires especially forceful or persistent monetary policy action to avoid negative deviations from the inflation target becoming entrenched.
 
:This may also imply a transitory period in which inflation is moderately above target.
 
 
:The Governing Council also confirmed that the set of ECB interest rates remains the primary monetary policy instrument.
 
:Other instruments, such as forward guidance, asset purchases and longer-term refinancing operations, that over the past decade have helped mitigate the limitations generated by the lower bound on nominal interest rates will remain an integral part of the ECB’s toolkit, to be used as appropriate."
 
:''ECB press release - 2021.''
 
 
== See also ==
* [[Asset purchases]]
* [[Bank of England]]
* [[Central bank independence]]
* [[Effective lower bound]]
* [[European Central Bank]]  (ECB)
* [[Financial stability]]
* [[Forward guidance]]
* [[Flexible inflation targeting]]
* [[Inflation]]
* [[Jurisdiction]]
* [[Longer-term refinancing operations]]
* [[Monetary policy]]
* [[Monetary Policy Committee]]
* [[Monetary Policy Report]]
* [[Official Bank Rate]]
* [[Zero lower bound]]




==External link==
==External link==
*[https://www.bankofengland.co.uk/monetary-policy/inflation The UK's inflation target - Bank of England]
*[http://www.iaisweb.org/index.cfm?event=showHomePage&persistId=1737FD59155D896B00D5407E6E773A66 IAS home page]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 03:08, 20 January 2022

Regulation - supervision - insurance.

(IAIS).

The IAIS is an international body representing insurance regulators and supervisors.


The IAIS aims to:

  • Promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders; and
  • Contribute to global financial stability.


The IAIS is hosted by the Bank for International Settlements.


See also


External link

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