Question
Which of the following Statements is/are True?
I. D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF). II. D-SIIs refer to insurers of such size, market importance and domestic and global interconnectedness whose distress or failure would cause a significant dislocation in the domestic financial system. III. The continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.Solution
D-SIIs are perceived as insurers that are ‘too big or too important to fail’ (TBTF). D-SIIs refer to insurers of such size, market importance and domestic and global interconnectedness whose distress or failure would cause a significant dislocation in the domestic financial system. Thus, the continued functioning of D-SIIs is critical for the uninterrupted availability of insurance services to the national economy.
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