Insurance leader warns of "systemic risk" of rush of capital into insurance.

FT: “The chairman of Lloyd’s of London has warned of the danger that a rush of capital into the insurance industry will cause “systemic problems” akin to those of the banking sector during the financial crisis.” John Nelson: “We all vividly remember the systemic problems which arose in the banking industry . . . where capital became detached from the underlying transaction of risk,” he said. “The insurance industry must avoid these traps.”
His comments come as low interest rates encourage mainstream investors stung by weak returns from traditional assets to pour capital into the insurance industry in a hunt for yield.”