Global insurance supervision is changing: Monitor and prepare

"Internationally, insurance regulators are advancing plans that will layer additional standards of supervision to new classes of insurers, prompting management to assess their current operating and reporting standards against the potential future requirements asked of their business. This spring, insurance regulators around the globe came together with insurance industry leaders to advance major proposals that aim to create global safeguards that supplement existing local regulations. These proposals will have implications for the larger players in the insurance market, but the finer details have yet to be agreed upon. Developments to date show that those crafting these proposals have been responsive to industry feedback, although several areas of concern still exist. These key proposals from the International Association of Insurance Supervisors (IAIS) are targeted at group supervision and financial stability. The IAIS Insurance Core Principles (ICPs) underpin these developments and are relevant to all insurers and insurance groups, regardless of their size or the risk they present to the wider market. The ICPs seek to encourage convergence toward a globally consistent supervisory framework, and provide criteria to facilitate comprehensive and consistent assessments. Regulators of insurance markets around the world are looking to the ICPs to help them create regulatory frameworks that limit the inconsistencies across jurisdictions."