Strengthening global cooperation

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Strengthening global cooperation

As the world becomes more interdependent, global cooperation is needed now more than ever.

The reinsurance industry plays an important role in society through its long-term investments and by providing financial stability for individuals, institutions and economies alike.

Swiss Re advocates global cooperation and a multilateral approach that promotes the macro-economic, legislative and social conditions that facilitate our vision of making the world more resilient. Our specific focus areas include:​

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Financial stability and the resilience of national economies

Following the pandemic crisis, economies around the world need to increase fiscal preparedness and implement structural alternatives that strengthen resilience such as investing in sustainable infrastructure and designing economic policies that tackle climate change risks. Re/insurance can help promote stability and economic recovery as it enables the efficient and effective diversification of risk globally, facilitates finance and investments and promotes the continued growth and recovery of national economies.

Open markets and multilateralism

For re/insurance players to perform their role as shock absorber, they need to be able to pool and diversify across different forms of catastrophic and non-catastrophic risks. Full access to international capital and cross-border reinsurance has tangible benefits not only for local insurance industries, but also for the consumers and the wider economy. Barriers to market access and other protectionist measures would undermine the reinsurers' ability to support economic growth.

Legal and regulatory frameworks

Regulatory framework change and a more insular approach to policymaking at the national level can lead to regulatory fragmentation and market restrictions that negatively impact the re/insurance industry's ability to act as a financial shock absorber. Fit-for-purpose regulation, which appropriately considers the role re/insurance plays in global resilience, is key to enable the full potential of the re/insurance value proposition.

Financial resilience and income inequality

The global pandemic is likely to intensify the trend of growing inequality within and between countries. Social equity – creating equal opportunities for all – will be a defining feature of a more resilient world. A key characteristic of high equality countries is financial inclusion, which includes higher levels of insurance penetration enabling individuals to withstand personal setbacks. Making insurance more widely available and affordable is essential in tackling the inequality issue.

SIGMA 3/2022

SIGMA 3/2022 Reshaping the social contract: the role of insurance in reducing income inequality

The Swiss Re Institute inequality sigma analyses 40-year income inequality trends within countries, finding that the impacts are negative for social cohesion, economic growth and financial markets. Inequality is also detrimental to most insurance markets, leading to overall lower insurance penetration and reduced household protection.

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