IAIS supervision proposal is too intrusive
Source: Asia Insurance Review | Jan 2019
The Global Federation of Insurance Associations (GFIA) has warned that the increased supervisory mandates, included in an International Association of Insurance Supervisors (IAIS) draft application paper on proactive supervision of corporate governance, would be costly to implement and overly intrusive.
They could even potentially blur the line between the supervisor and the insurer, to the detriment of both, said the GFIA in a statement responding to the IAIS paper.
In addition, while the application paper is intended as guidance, there are provisions in it that are unclear, subjective and overly broad, according to the GFIA.
In November 2018, IAIS called for feedback on its draft Application Paper on Proactive Supervision of Corporate Governance. It said that the outcome of the IAIS Self-Assessment and Peer Review (SAPR) conducted in 2014 underlined the need for additional guidance on supervisory practices related to corporate governance that are proactive and sufficiently robust. Some issues identified in the SAPR have been addressed by revisions to two Insurance Core Principles (ICPs), finalised in November 2015.
Asia Insurance Review will carry an interview with IAIS secretary general Jonathan Dixon in its February 2019 issue. A