WFII’s activities in the interest of insurance intermediaries

Nic De Maesschalck Director WFII Deputy Director BIPAR

WFII : The World Federation of Insurance Intermediaries

Set up in 1999

To promote and defend the interests of intermediaries - at international level - international Public Affairs issues

WFII : Single voice of intermediaries at international level

WFII : World Federation of Insurance Intermediaries

Chapters/ members Europe : BIPAR North America Latin America Africa Asia/ Pacific Rim

Groups 100 national associations in 80 countries

Governing structure of WFII

World Council : 18 delegates of the various regions : defines strategy and policy direction

6 delegates from Europe Includes : T. Mintoft-Czyz.

Executive CSE Committee

Permanent Secretariat

The Role of WFII

“The core business of any trade association, national, European or International is to promote the optimal regulatory environment in which the business of its members can prosper.”

In the modern society, - this covers a wide spectrum of “public affairs” activities at national, european and international level- against the background of an ever growing web of interacting interests and influences.

The web of interacting interests

Every article in a national regulation related to insurance

is the result of an interaction of national,

European and international interests and

public affairs activities.

The “Web”

The “web” of institutions and influences

APIRB/ CHAMBER

The “web” of institutions and influences

APIRB/ CHAMBER

BIPAR

Nat.regulator

Assoc of insurers

consumers

The “web” of institutions and influences

APIRB/ CHAMBER

BIPAR

Nat.regulator

Assoc of insurers

consumers

EC/

CeiopsCEA BEUC

The “web” of institutions and influences

APIRB/ CHAMBER

BIPAR

Nat.regulator

Assoc of insurers

consumers

EC CEA BEUC

WFIIIMF/IAIS / OECD/WTO/ UN

IAISInternational Association of Insurance Supervisors.

The IAIS groups insurance supervisory authorities of some 100 jurisdictions.

- Promotes co-operation among insurance regulators

- Sets international standards for insurance supervision

- Annual conference + various meetings per year

IAIS : Agenda

(a few examples)

Reinsurance supervision Anti-money laundering and anti-fraud Supervision of insurance activities on the Internet Insurers Capital adequacy and solvency International Accounting Standards … Insurance intermediation.

IAIS and insurance intermediation

IAIS invites all supervisory authorities to require from all those pursuing an intermediation activity:

- To be registered or licensed by the competent regulatory authority.

- To have adequate general, commercial and professional knowledge and ability, as well as a good reputation.

- To have sufficient safeguards in place to protect the client’s money.

- To give customers information on their status

- - Compare with EU Directive / national regulation --

Regulation on intermediation : an example IAIS principles / EU Directive / national regulation

APIRB/ CHAMBER

BIPAR

Nat.regulator

Assoc of insurers

consumers

EC CEA BEUC

WFIIIMF/IAIS / OECD/WTO/ UN / FATF

The “Web”

Some Other issues on the agenda of the “web”

Issue Anti-money laundering Market conduct market access terrorism insurance reinsurance supervision solvency of insurers Electronic commerce

Public Procurement

Levels Nat / EU/ IAIS/ FATF Nat/ EU/ IAIS Nat/ EU/ WTO Nat/ EU/ OECD Nat/ EU/ IAIS Nat/EU/ IAIS/OECD Nat/ EU/ IAIS/ OECD/

WTO EU/ Nat/ WTO

Anti Money Laundering (an example)

FATF 40 recommendations (2002)

IAIS core principles (2003) IMF/FSAP’s

(New EU Directive)

National legislation

WFII + BIPAR + National associations

How WFII helps

Defence of intermediary interests at drafting stage of FATF / IAIS text

Early warning : national associations (and BIPAR) are aware that that new regulation will come (at EU) and National level

WFII Interpretative paper (helps at the stage of implementation at national level)

There is a world-wide- single- intermediary position ! = unique

WFII’s Role

Until now :

issues related to Regulation

WFII is also about liberalisation

WFII principles related to liberalisation (extracts):

Some basic principles promoted by WFII :

Intermediaries should have the right to provide Cross-boder intermediary services related to MAT and reinsurance

Foreign intermediaries should have the right to establish in a market under national treatment.

Principles are driven by need of intermediary to follow his client abroad / and or need for international capacity

WTO

the World Trade Organisation

- Over 100 member countries - Gats : General Agreement on Trade in Services

- under what conditions an intermediary from one country can do business in another country.

3

GATS agreements have consequences on the national regulation

National regulation has consequences on the degree of liberalisation.

Interaction

WFII’s Role

Issues (both regulatory and liberalisation) on the international agenda are issues on the national agenda

But also : thanks to /due to the international fora such as IAIS /

OECD, … + communication means + globalized world

issues on the national agenda become at ever increasing speed on the international agenda .

WFII’s Role

Therefore :

WFII also important as the single platform for exchange of information between the 100 national member

associations.

= important role for national associations to send early warnings.

The web of interacting interests

Every article in a national regulation related to insurance

is the result of an interaction of - national, - European and - international Interests and public affairs

activities.

Conclusion

National associations +

European federation +

WFII

The intermediary sector is well equiped to promote and defend its interests optimally in the web of public affairs interests

WFII’s activities in the interest of insurance intermediaries

Nic De Maesschalck Director WFII Deputy Director BIPAR