New framework for insurance supervision Out
The International Associa-tion of Insurance Super-visors (IAIS) released late Thursday at its annual conference and general meeting in Amman a new framework for insurance supervision; and invited public consultation.
The new framework underpins the IAIS' past and future standard-setting activities on insurance supervision and proposes the development of cornerstones for the assessment of insurer solvency, which takes a central position in the framework, Jordan's Insurance Commission (IC) Director Bassel Hindawi told The Jordan Times.
IAIS Executive Committee Chairman Manual Aguilera-Verduzco called the framework a major step in communicating the overarching interrelationships between IAIS principles and standards being adopted.
He also noted that the framework reflects specific risks associated with insurance, while being compatible with supervisory developments in other financial sectors for common types of exposure.
At a press conference, Hindawi described the IAIS 11th annual conference as a "unique opportunity to develop a multilateral discussion on important issues for insurance supervisors and other insurance representatives." Noting that the conference in Amman was the first to be held in the Middle East and North Africa region, Hindawi said: "The insurance industry is certainly becoming more and more global: Close interconnections of insurance markets create new challenges to tackle, but also new opportunities to use, for both supervisors and insurance professionals."
Nearly 400 supervisors and insurance professionals from around 90 jurisdictions attended the conference, organised under the patronage of His Majesty King Abdullah and hosted by the Insurance Commission of Jordan.
At the general meeting, the IAIS adopted a standard on disclosures concerning technical performance and risks for nonlife insurers and reinsurers, the first of three standards which the IAIS will be issuing regarding public disclosure requirements, Hindawi said.
Also stressed was the need for a revision of the principles on the supervision of insurance activities on the Internet, which stresses the importance of the management of key risks, and extends the scope of the principles to insurance intermediaries, the IC chief added.
Hindawi indicated that, during the IAIS meeting, the participants discussed papers on anti-money laundering and combating the financing of terrorism which explains vulnerabilities of the insurance sector in those areas and presents measures to control such risks, taking into account the revised 40 Recommendations of the Financial action Task Force on money laundering.
They also dealt with a new guidance paper on investment risk management, which provides guidance to insurers on effective investment risk management as well as to supervisors in evaluating insurers' investment risk management policies and practices, the IC director general pointed out.
At the end of the meetings, the IAIS elected Alessandro Luppa as chairman of its executive committee, to succeed Manuel Aguilera-Verduzco who has concluded his term of office, according to an IAIS press release.
|
