IAIS to Set Up Supervisory Framework for International Insurance Groups

Posted on Jan 29, 2010 by Sergio Ulloa (G+)  | Tags: IAIS, insurance

The International Association of Insurance Supervisors (IAIS) has given the go-ahead for the creation of a Common Framework for the Supervision of Internationally Active Insurance Groups. A task force led by Monica Mächler of the Swiss Financial Market Supervisory Authority (FINMA) drew up the recommendations in order to develop better supervision of internationally active insurers' group structure, business mix and intra-group transactions. The purpose of the increased monitoring of international insurance groups' business operations is to help identify risks and establish protective measures as needed. A wide-ranging concept paper on the framework is set to be ready in the first half of 2011 with the framework to be completed by 2013. It will set out both quantitative and qualitative requirements for the insurance supervisors from the 140 countries participating in the IAIS smoothing the way for wide-spread implementation as well as cooperation and interaction between supervising entities. Entities Mentioned: International Association of Insurance Supervisors (IAIS) - The IAIS was established in 1994 and represents insurance supervisors and regulators from 190 jurisdictions in 140 countries. It works to promote financial stability by issuing worldwide insurance standards, principles and guidance papers as well as offering training on issues pertaining to insurance supervision. Swiss Financial Market Supervisory Authority FINMA - FINMA is the independent Swiss authority supervising insurance companies, banks, stock exchanges, securities dealers and other financial intermediaries. Created by the FINMASA Act which was approved by parliament in 22 June 2007 which into full force on 1 January 2009; it combined the Federal Office of Private Insurance (FOPI), Swiss Federal Banking Commission (SFBC) and the Anti-Money Laundering Control Authority.