Systemic risk is the buzz word from the financial crisis. In this talk, we discuss what it means for the insurance industry. We will explore how it affects the industry through the underwriting and reserving cycles. Through our analysis of the historical underwriting cycle, we will develop a regime-switching model for simulating future cycles and show its superiority to an autoregressive approach. We will also clearly show evidence of systemic risk in reserves and how reserve risk measurement is affected by the reserving cycle. Lastly, we will explore what can be done to manage the cycle and mitigate systemic risk.