. data is also needed to track the terms of transactions, including maturity and haircuts. one interesting idea is for regulators to run exercises in which they ask prime brokers to calculate portfolio haircuts against archetypal leveraged portfolios. the aims would be both to track any loosening in market - wide standards over time and to spot outlier dealers that require lower haircuts than their competitors. these significant regulatory reforms will have consequences for the behaviour of dealers and investors in securities financing markets. some market participants may seek ways around the new regulations : for example, there has been talking about dealers “ renting ” balance sheet from other market participants or establishing off - balance sheet financing vehicles. the flipsides of more resilient dealers and markets in periods of stress may well be less leverage, less maturity transformation and lower dealer inventories in more normal periods. the balance is not easy to strike ; we may need to readjust our approach as we learn. but the goal of these reforms is clear : to make securities financing markets resilient. robust securities financing markets should help to stabilise rather than destabilise the financial system in the face of shocks. the reduction in dealer inventories has attracted a lot of comment, with questions about whether they will be willing and able to provide liquidity as market makers in falling markets on the same scale as in the past. but the role of dealers in providing stable financing to leveraged investors may be equally important. those investors may be the most likely to see a market crash as a buying opportunity – but only if they are not over - leveraged and have access to borrowing from financially - sound dealers. put another http : / / www. bis. org / publ / bcbs270. pdf. http : / / www. bis. org / bcbs / publ / d295. pdf. http : / / www. bis. org / publ / bcbs238. pdf. in october 2014, the fsb published strengthening oversight and regulation of shadow banking : regulatory framework for haircuts on non - centrally cleared securities financing transactions ( http : / / www. financialstability board. org / publications / r _ 141013a. pdf ). bis central bankers ’ speeches way, we want dealers and leveraged investors to be providers not demanders of liquidity in a crisis. references gorton, g b, metrick, a, & xie,

of the european securitisation framework could also provide insurers with new solutions for diversifying their strategic asset allocation. there is much more at stake here page 3 of 9 than technical discussions over prudential ratios – it is a matter of strategic importance for europe. the development of equity financing is essential if europe is to catch up in terms of innovation. our continent has the resources – private savings ; it also has the needs – investment in the transformations of the european economy. but, unlike the united states, it does not have sufficient financial intermediation between the two. this is precisely the goal of a genuine savings and investments union, as recommended by the draghi and letta reports. and this union is not just aimed at banks, markets, private equity funds or venture capital funds. it needs to rely on you, insurers, as well. ii. an increasing role in the future 1 ) the transformations under way in our society in a world that is changing more rapidly, new risks are emerging. to what extent can they be covered by insurers, or to what extent are they in fact “ insurable ”? i ’ m going to focus here on three challenges. first, the challenge linked to the digital transformation, which has been accelerated by the pandemic. although this transformation is indeed generating opportunities and efficiency gains, it is also making information and operational systems increasingly complex – notably due to fragmentation linked to the growing use of external service providers – and increasingly exposed to sophisticated cyber attacks. the insurance industry needs to maintain greater vigilance over these risks to guarantee its own resilience. the imminent entry into force of the dora regulation is contributing to this. more generally, it is crucial that all firms and citizens can protect themselves against these heightened it / cyber risks. here again, the insurance industry has a predominant role to play, through initiatives to raise awareness, but also by developing cyber insurance. the second very concrete transformation facing the insurance industry is climate change. the biggest direct consequence is an intensification of the physical risks, which translates as a rise in the frequency and cost of insured climate events : we ’ ve just witnessed this dramatically in mayotte. according to swiss re, natural disasters generated total economic losses of eur 295 billion page 4 of 9 in 2024, an increase of 6 % compared with 2023. i and in the latest edition of its climate scenarios, published in november, the ngfs ii – our network for