cover image: SUERF Policy Brief  - No 864, May 2024


SUERF Policy Brief - No 864, May 2024

2 May 2024

This policy brief analyses the effects of monetary policy on the size and composition of insurers’ balance sheets, as well as the implications of these effects for financial stability. [...] The size of the sector has grown significantly over the past two decades, and so has its relevance for the financing of firms and governments, as the premiums that ICs collect from their policyholders are invested in global capital markets. [...] To the best of our knowledge, this role of the insurance sector in monetary policy transmission has not been documented before in the literature. [...] Our paper is the first to confirm these observations for the insurance sector using the latest methodological advancements for the identification of the effects of monetary policy.2 What do our results imply for financial stability? Our results have several important implications for monetary policy and financial stability. [...] SUERF Secretariat c/o OeNB SUERF’s events and publications The views expressed are those of the Otto-Wagner-Platz 3 provide a unique European author(s) and not necessarily those of A-1090 Vienna, Austria network for the analysis and the institution(s) the author(s) is/are Phone: +43-1-40420-7206 discussion of these and related issues.


Anita Kinney

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