Insurance and banking
Insurers and banks are the traditional regulated balance sheets that absorb losses first: insurers through claims, banks through credit. This group of The Global Risks Alliance (GRA) sector platforms brings together two established communities, Insurance Nexus and Banking Nexus, each joining its sector with the science, technology, engineering and mathematics it relies on. The platforms publish evidence and are designed to convene professionals. They never underwrite, lend, advise or transact. This page is part of the specialist financial network.
- 01InstitutionThe Global Risks Alliance (GRA)
- 02Service levelR0: information and enquiries
- 03In briefThe short answer
- 04The two platformsEstablished communities, each at its own address
- 05Where they meetThe insurance-credit link, in practice
- 06Spatial viewOne map, two balance sheets
- 07Shared questionsWhere insurance and banking meet
GRA · Institution · service level R0
The short answer.
The insurance and banking group of GRA sector platforms brings together Insurance Nexus and Banking Nexus, the two established communities for the regulated balance sheets that absorb losses first: insurers through claims, banks through credit. They publish evidence and never underwrite, lend or advise; Reinsurance and Catastrophe and Actuarial and Quantitative Risk are in development.
A loan book under scenario families.
How physical and transition risk could reach a loan book under different scenarios. Illustrative design values.
Established communities, each at its own address.
Insurance Nexus
Where losses are insured, where they are not, and why the gap grows. Exposure, accumulation and protection gaps across property, health and climate perils. Methods: actuarial mathematics, extreme value theory, probability and statistics, climate science and machine learning. Visit Insurance Nexus.
Banking Nexus
How physical and operational shocks reach credit portfolios, and how losses travel between banks through shared exposures and funding. Methods: financial economics, probability and statistics, network contagion, risk engineering and machine learning. Visit Banking Nexus.
The insurance-credit link, in practice.
| Link | Mechanism | Standards on each side |
|---|---|---|
| Insured collateral | Lenders require property cover; when cover is withdrawn or repriced, collateral quality and borrower affordability change | Basel credit risk and collateral rules; insurers' underwriting under ICPs or Solvency II |
| Insurers as investors | Insurers hold bank debt and fund private credit | Solvency II spread risk; Basel large exposures |
| Bancassurance and shared operations | Distribution and technology shared across groups | Conglomerate supervision; DORA and operational resilience rules |
| Mortgage portfolios in hazard zones | Both sides hold correlated exposure to the same buildings | BCBS climate principles; IAIS climate application paper |
One map, two balance sheets.
Placing mortgage collateral and insured property on the same hazard grid shows where both sectors would take the hit from one event, and where insurance withdrawal would transfer risk to lenders. Work continues at Insurance Nexus and Banking Nexus.
What these platforms never do.
- Underwrite, sell, solicit, negotiate, place or broker cover
- Lend, arrange or commit credit, or recommend a lender or insurer
- Set or discuss prices, premiums, rates or terms offered to customers
- Issue a rating, score or certificate for any institution, product or project
Because participants compete, platform work is designed around competition-law safeguards set out in a written competition policy that counsel reviews before membership opens.
Related communities and evidence.
Two proposed communities are in development and not yet open: Reinsurance and Catastrophe and Actuarial and Quantitative Risk. Research for this group appears on catastrophe and protection gaps and financial stability analysis. Hazard evidence comes from The Global Centre for Risk and Innovation (GCRI), including its insurance and catastrophe field. Other groups: investment and markets and sovereign and development finance.
Terms used on this page.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Insurance Core Principles | The IAIS's globally accepted framework for insurance supervision, setting the essential elements a supervisory system needs to promote a fair, safe and stable insurance sector. |
| Basel Framework | The full set of standards of the Basel Committee on Banking Supervision for the prudential regulation of banks, covering capital, liquidity, leverage and supervisory review. |
| Insurance protection gap | The difference between economic losses and insured losses, for an event, a year or an expected annual figure. |
Where this page's references lead.
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
Questions and answers.
Are these platforms open for participation?
Can an insurer and a bank share data through a platform?
Does Insurance Nexus help design insurance products?
Who publishes the platforms?
Around GRA.
Start with an enquiry.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.