financial services commission1 international insurance regulation michael oliver director of...
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Financial Services Commission 1
International Insurance Regulation
Michael Oliver
Director of Insurance
Financial Services Commission
British Virgin Islands
Financial Services Commission 2
International Regulatory Bodies
• International Association of Insurance Supervisors (IAIS)
• Offshore Group of Insurance Supervisors (OGIS)
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IAIS
• Established in 1994
• First supervisory principles – 1997
• Began work with IMF on FSAPs – 1999
• Core Principles (17) established in 2000
• Revised Core Principles (28) in 2003
• 180 member jurisdictions
• Observers allowed since 1999 – Now 100
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Role of IAIS
• Aim – Promotion of Financial Stability
• International Regulatory Setting Body
• Issues Principles, Standards and Guidance
• Promotes International Cooperation
• Liaises with other financial sector standard setting bodies
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IAIS Structure
• About 20 IAIS Committees and Subcommittees
• BVI is a member of two subcommittees:• Insurance Fraud Subcommittee drafts
papers on prevention of insurance fraud & guidance on AML/CFT
• Regional Coordinators – Coordinates for Offshore and Caribbean regional regulatory training & provision of technical assistance
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OGIS
• Established in 1993• 14 Members• 6 Observers (All Regulators)• Objectives:
• Promote the proper supervision of offshore insurance business
• Formulate regulatory policies for offshore insurance business
• Assist non members to establish appropriate supervisory regimes
• Represent OGIS at international fora
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OGIS
• BVI Chairman of:
• Evaluation Committee – Assesses compliance of members/observers and new applicants with insurance core principles
• Education Committee – Organises and implements annual training programme
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IAIS Insurance Core Principles
• ICP 1 – Conditions for Effective Insurance Supervision – Institutional and Legal Framework
• ICPs 2 to 5 – The Supervisory System – Powers and Conduct of the Supervisory Authority
• ICPs 6 to 10 – The Supervised Entity – Licencing and Governance of the Insurer
• ICPs 11 to 17 – On-going Supervision – Monitoring, Inspections, Enforcement Action and Winding Up.
• ICPs 18 to 23 – Prudential Requirements – Risk Assessment and Capital Adequacy
• ICPs 24 to 27 – Markets and Consumers – Intermediaries, Consumer Protection and Disclosure
• ICP 28 – Anti-Money Laundering and Combating the Financing of Terrorism
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IAIS Current Activities
• International Financial Reporting Standards – Working with IASB.
• Solvency – Common methodology for assessing insurer solvency. Focus on:
• Risk management• Insurer governance
• Reinsurance
• Finite Reinsurance• Mutual Recognition• Reinsurance transparency
• Multi-Lateral Memorandum of Understanding
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OGIS Current Activities
• Captive Issues Paper
• Demystifying captives
• Why might regulatory touch differ?
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International Insurance Regulation
Michael Oliver
Director of Insurance
Financial Services Commission
British Virgin Islands