Insurance associations around the globe agreed that overall, the insurance industry entered the crisis in a strong position and has shown resilience to the continuing shocks to the financial system. This resilience reflects the strength of the insurance business model and the increasing attention paid by insurance regulators to fostering risk-based supervision.
PCI and other organizations representing the global insurance industry submitted a statement to the IAIS’ Executive Committee outlining several key principles on which to base insurance regulation, including:
* The insurance industry shares the regulators’ objective of protecting policyholders.
* International insurance companies should be regulated with enhanced cooperation among supervisors and group-wide supervision.
* Supervisory authorities should strengthen their ability to cooperate in identifying emerging problems and in using their existing powers in an efficient and appropriate way to safeguard policyholders and beneficiaries.
* The insurance industry encourages the continuing trend toward risk-sensitive regulation. The level of prudential requirements should reflect the level of risk and diversification.
* The insurance industry believes that regulation should encourage competition.
Organizations joining PCI in stating these principles included:
Association of British Insurers
Association of Bermuda Insurers & Reinsurers
American Council of Life Insurers
Association of Mutual Insurers and Insurance Cooperatives in Europe
Association of Savings & Investment of South Africa
European Insurance and Reinsurance Federation
Canadian Life & Health Insurance Association
Dublin International Insurance & Management Association
General Insurance Association of Japan
General Insurance Association of Korea
Insurance Council of Australia
Korea Life Insurance Association
Reinsurance Association of America
South African Insurance Association