Inflation has reached decades-long records due to the significant increase in spending during 2021, world price hikes, and problems in global supply chains. The Central Bank of Chile started its monetary policy response early in 2021 and is taking every measure necessary to bring down inflation. Local authorities have continued to work towards the consolidation of a financial stability and macroprudential framework. On financial stability policy, the mandate of the BCCh includes ensuring the normal functioning of internal and external payments systems, including the role of lender of last resort to the banking system. This gives the BCCh a broad interest in the stability of the overall financial system. Through its semiannual Financial Stability Report, BCCh identifies, monitors and reports on risks and vulnerabilities within the financial system, from a macroprudential perspective. The BCCh took the very first steps into the financial stability territory back in the early 2000s. The first Financial Stability Review of the BCCh was released in 2004, a report that contains a systemic risk assessment and analysis that provides valuable information to all participants in the local financial market, including regulators and other authorities. Thus, during the last two decades, the BCCh has consolidated its financial stability role. In turn, the CMF mandate is to safeguard the proper functioning, development and stability of the financial market, supervising banks, their subsidiaries, the 3 large saving and credit cooperatives, credit card issuers, insurance companies, securities issuers; fund managers; brokers; and financial market infrastructures. Strong coordination is required among financial authorities to preserve financial stability.

Pablo García Silva: Changing landscape - the role of the insurance sector in meeting emerging economic and social challenges Welcome remarks by Mr Pablo García Silva, Deputy Governor of the Central Bank of Chile, at the Annual Conference of the International Association of Insurance Supervisors (IAIS), organised by the Financial Market Commission (FMC), Santiago, 10 November 2022. *** This year´s conference is on the role of the insurance sector in meeting emerging and economic and social challenges. This is quite appropriate, as past are the days when longevity risk, low interest rates, anemic growth and secular stagnation seemed to be the main concerns of the insurance industry. Recent years have put significant stress on global capital markets and on the insurance industry, through high inflation and disruptions in financial markets. Looking ahead, supervisory and regulatory authorities need to be on top of these developments to adapt accordingly. The external macroeconomic scenario has evolved negatively in recent months, and risks for global financial stability remain high. A sharp rise in inflation -to which the Russia-Ukraine conflict has certainly contributed- has required a decisive response from central banks, which have had to raise their monetary policy rates considerably. Global growth outlook has weakened, with increasing risks of a global recession in 2023. Thus, financial conditions and liquidity have tightened. The Fed's toughening tone and decisions -and the uncertain future trajectory of its policy- have propitiated a cycle of global strengthening of the dollar and increased the sensitivity of the financial markets to new developments.