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With new banking rules forcing banks to reduce levels of maturity mismatching and liquidity risk that were common pre-crisis, and with funds required to stimulate economic growth, the study, "Funding the Future - Insurers' role as institutional investors', highlights that Europe faces a total funding gap of between €4 trillion and €5 trillion between 2012 and 2016.
Insurers can provide long-term, stable funding for governments and business as a natural match to the long-term maturity of their liabilities, so without incurring liquidity risk.