G-SII (Globally Systemically Important Insurers)

Globally Systemically Important Insurers (G-SIIs) are large insurance companies whose failure could significantly impact the global economy and financial system. These firms are designated as "systemically important" because their size, interconnectedness, or the services they provide make them crucial to financial stability. Regulators monitor G-SIIs closely and require them to maintain higher capital reserves and follow stricter regulations to mitigate risks. This helps ensure that if they face financial trouble, it won't lead to widespread economic issues, protecting consumers and maintaining trust in the financial system.