It was considered that, despite vulnerabilities focused on some sectors and a more complex international environment, the systemic risk analysis shows that banks have sufficient buffers to withstand severe stress scenarios. The insurance sector plays a key role in the financial sector in Chile. Mature insurance industry, with a relatively high size in relation to other economies and active participation in the domestic market. It also plays a key role in the pension system through Life Annuities. However gaps remain. International 4 experience shows a clear trend towards "risk-based supervision" (RBS) in the insurance sector. Reference jurisdictions such as Australia, Canada, and the EU adopted this model long ago. Full adoption of an RBS framework requires an amendment of the insurance legal framework, and a bill introduced in 2011 to Congress establishes such a model, considering among others new risk-based capital requirement, a new solvency assessment system for insurers, a more flexible investment regime among other changes. Both the BCCh and the CEF have noted the relevance of this bill, labeling it as a high priority from a systemic risk point of view, considering insurers' relevance and interconnectedness, their significant participation in financial conglomerates, and the fiscal contingency embedded in life annuities and disability and survival insurance contracts. Despite the progress made by the CMF, and the evolution of the industry in terms of risk management and corporate governance enhancements, moving towards a robust legal framework of Risk Based Supervision in the insurance industry is essential for the preservation of financial stability. Let me conclude.

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.