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|An In-depth Assessment of the IAIS Regulatory Framework. |
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Table of Contents
1.0 Background 3
2.0 Introduction 5
2.1 The 12 Key Standards for Sound Financial Systems. 6
2.2 The Structure of the International Association of Insurance Supervisors. 8
3.0 IAIS Insurance Core Principles 9
3.1 Applicability of IAIS Insurance Core Principles 9
3.2 In-depth Assessment of the IAIS Insurance Core Principles 10
4.0 In-depth Assessment of the IAIS Standards 19
5.0 The IAIS Solvency Framework 24
5.1 Framework Level 1 — Preconditions for solvency assessments 24
5.2 Framework Level 2 — Regulatory requirements 25
5.3 Framework Level 3 — Supervisory assessment and intervention 26
5.4 Capital Requirements 26
5.5 Convergence of Best Practices 27
6.0 Conclusion 29
References 33
1.0 Background
The insurance sector is an important element of the world economy. Sound regulation and supervision of the insurance market secure efficient functioning of the insurance sector, which contributes to overall financial stability. Insurance regulation and supervision has become even more important recently with the increasingly global nature of insurance activities, which requires adequate regulatory frameworks in each jurisdiction. Moreover, emergence of complex financial products, increased number of financial conglomerates, and consolidation of financial institutions present new challenges for regulators and require new approaches to supervision. The traditional focus of insurance supervision has been gradually shifting away from policyholders’ protection to...