The International Association of Insurance Supervisors (IAIS), the International Actuarial Association (IAA) and the Access to Insurance Initiative (A2ii) have signed a five-year agreement at the IAIS Annual Conference in Kuala Lumpur, to enhance the actuarial skills of supervisory authorities.
The key outcomes of the agreement, signed on 1 November, will be the development and delivery of supervisory capacity building training programs on actuarial services.
All three organisations recognise the need to develop actuarial skills in supervisors, particularly those from emerging market and developing economies. Actuarial skills are essential to the prudential supervision of insurers in such matters as determining and managing policy liabilities, setting appropriate premiums and managing capital requirements. This skill set provides support for enterprise-wide risk management in financial services and more widely for long-term policyholder protection.
Ms Victoria Saporta, IAIS Executive Committee Chair, said: “The IAIS is pleased to be a founding partner of this new initiative and looks forward to seeing the delivery of actuarial capacity building for IAIS members. This will help address a long-standing need of insurance supervisors and directly benefit the supervisors and the insurers they supervise”.
Mr Thomas S Terry, IAA President, said: “We fully support the need for actuarial capacity building, especially in emerging markets, with respect to both financial services supervisors and the industries they supervise. The partners to this initiative share a common commitment to the public interest and the long-term interests of all policyholders”.
Mr Peter Braumüller, A2ii Governing Council Chair, said: “Working with insurance supervisors in Latin America, Africa and Asia, the A2ii has seen the challenges insurance supervisors face in trying to move their markets towards a more risk-based approach to setting capital requirements when little or no local actuarial expertise is available.”
The IAIS, a voluntary membership organisation of insurance supervisors and regulators from more than 210 jurisdictions, is holding its annual conference which is staged in Kuala Lumpur this year. The two-day event ends today.