NTNI - Nontraditional and Non-insurance
- IAIS (2013) continues using the Geneva Association approach to identifying systemic risk activities and then confirming the systemically important insurers and believes that nontraditional (NT) and non-insurance (NI) financial businesses are the ones that create systemic risk in the insurance industry.
- NTNI activities involve financial features such as leverage, liquidity or maturity transformation; imperfect transfer of credit risks (such as shadow banking); and credit guarantees or minimum financial guarantees.
- They also involve products that are more financially complex than traditional insurance products in the shifting of financial market risk to insurers. (p8)
2020 02 - Systemic Risk in China’s Insurance Industry, Society of Actuaries