International Insurance Regulation

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) Financial Services Commission

3. 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 Financial Services Commission

4. 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 Financial Services Commission

5. 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 Financial Services Commission

6. 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 Financial Services Commission

7. 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 Financial Services Commission

8. 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 Financial Services Commission

9. 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 Financial Services Commission

10. OGIS Current Activities • Captive Issues Paper • Demystifying captives • Why might regulatory touch differ? Financial Services Commission

11. International Insurance Regulation Michael Oliver Director of Insurance Financial Services Commission British Virgin Islands Financial Services Commission