GFIA Global Federation of Insurance Associations

GFIA has today published a letter where it calls on the Financial Stability Board (FSB) to increase its support for the resilience of private capital-backed pension systems. Besides their role in contributing to the stability of pension systems and the adequacy of pension revenues, private capital-backed pension systems have a key role to play in the recovery from the ongoing COVID-19 pandemic in both developed and emerging markets.

While GFIA appreciates the efforts already undertaken by the FSB in this regard, more could be done to enable private capital pension systems to contribute to economic recovery. The 2021 Italian G20 Presidency, for example, provides a significant opportunity to bring the long-term benefits of pre-funded retirement savings into the spotlight.

GFIA therefore urges the FSB to highlight the importance of private capital-backed pension systems in its policy suggestions for the G20 summit recommendations. Targeted suggestions would enable the Italian G20 Presidency to examine the role that long-term capital asset accumulation could play in facilitating the recovery from the COVID-19 pandemic.

The FSB should also encourage the International Association of Insurance Supervisors (IAIS), the International Organisation of Pension Supervisors (IOPS) and the Organisation for Economic Cooperation and Development (OECD) to further contribute towards discussions on the risks that COVID-19 poses to funded retirement systems.