Leading insurance executives, academics, supervisors and regulators from around the world met at the end of last week in Geneva, Switzerland, to discuss current and future regulation and supervision of the insurance industry at a meeting organised by international insurance think tank, The Geneva Association. The meeting was the 27th annual PROGRES seminar of The Geneva Association’s Programme on Regulation and Supervision (PROGRES).
Entitled, “Balancing regulation and supervision—In search of optimal global solutions”, the seminar provided a platform for open and progressive discussions amongst participants from around the world. The PROGRES seminars are an annual forum and focal point for up to 90 experts from representative organisations, academics, officials from governments and intergovernmental organisations to discuss and debate insurance regulatory issues in an informal way.
This year’s seminar provided five sessions:
1. Macroprudential surveillance: A missing component?
2. In search of efficient supervisory solutions
3. Supervision of transborder groups
4. Supervisors in the safety net: what are the other stakeholders?
5. Regulation and Supervision of systemically important financial institutions
The seminar was attended by regulators and supervisors from International Association of Insurance Supervisors (IAIS), the Financial Stability Board (FSB), the National Association of Insurance Commissioners (NAIC), the European Commission, European Insurance and Occupational Pensions Authority (EIOPA) as well as several national representatives. The companies represented included Allianz, Aviva, AXA, MAPFRE, Munich Re, Prudential Financial, Swiss Re, Zurich Financial Services and the Lloyd’s market.
Dr Peter Braumüller, Chairman of the IAIS commented, “High quality regulation and supervision is vital for the safety and efficiency of the world’s insurance industry. Particularly in light of the financial crisis, we welcome opportunities such as the PROGRES seminar to discuss issues with the industry in order to reach the best quality regulatory outcomes for all stakeholders”.
Patrick M. Liedtke, Secretary General and Managing Director of the Geneva Association said, “The insurance industry currently faces an unprecedented number of regulatory initiatives. It is vital that these initiatives are undertaken carefully and with the full understanding of the implications and impacts on the industry. The Geneva Association’s PROGRES seminars provide fertile ground for industry discussions and this year’s meeting was extremely productive”.
“We welcome the opportunity to share perspectives with all key stakeholders on regulation and supervision and to discuss the evolution of the business and the insurance marketplace”, said Yoshihiro Kawai, Secretary General of the IAIS, “We welcome the input of industry, academics, and other experts on these issues”.
In discussing the IAIS ComFrame initiative, Dr. Monica Mächler, Vice Chair of the Swiss FINMA Board said, “To develop a solid global source code for the supervision of large and internationally active insurance groups is key. It facilitates communication and cooperation in order to address potential adverse dynamics efficiently and effectively”.
Victor Rod, Alternate Chairperson of EIOPA said, “Until before the last crisis, many supervisors stated ‘Failure is not an option’. This was widely true in Europe under Solvency I rules. Solvency II will put much more onus on each and every company. That means failures will probably happen. In these circumstances it is essential that policy-holder claims can be secured. Insurance guarantee schemes may be one safety net”.
Dr. Duncan Alford, Professor of the University of South Carolina and eminent specialist on supervisory colleges in international supervisory coordination, explained, “The recent financial crisis has served as a catalyst for supervisory developments. This meeting has improved understanding further dialogue among supervisors, industry executives and commentators to enhance supervision and regulation of the financial sector with the ultimate goal of promoting financial stability”.
Source : Geneva Association Press Release
