Internal Control For Insurance Undertakings

Since the last decade, international Insurance fora have intensified their efforts to develop a complete set of generally accepted and applicable principles and standards concerning insurance activities and their supervision. Such developments allow insurance undertakings to deal with the complexity and importance of private insurance, which is increasing both from a social and a financial perspective. The result of the work carried out by the group is this document, issued with the intention of creating an appropriate framework geared to both insurance undertakings and supervisory authorities. On the one hand, insurance undertakings have a common reference to be used as a solid basis for more detailed developments, and on the other hand supervisors may apply a common general approach when assessing and monitoring Internal Control systems implemented by insurance entities. As far as this document contributes to an effective application of adequate Internal Control procedures, the insurance industry will benefit from higher security standards, and both policyholders and shareholders will see their level of protection improved. Thus, the implementation of Internal Control procedures should not be seen as an additional burden for insurers, but as a direct and effective manner of adding value to their business activity, the financial sector and the Economy as a whole.