IAIS Standards Setting Activities and the Insurance Core Principles

1. IAIS Standards Setting Activities and the Insurance Core Principles Washington – 4 May 2004 Luc Cardinal – Member of Secretariat International Association of Insurance Supervisors (IAIS) Website: www.iaisweb.org

2. IAIS Principles • Insurance Core Principles • Supervision of international insurers • Conduct of insurance business • Insurance activities on the internet • Capital adequacy and solvency • Supervision of reinsurers IAIS standards setting activities and the Insurance Core Principles

3. IAIS Standards • Licensing • On-site supervision • Derivatives • Asset management • Group coordination • Exchange of information • Evaluation of the reinsurance cover • Supervision of reinsurers IAIS standards setting activities and the Insurance Core Principles

4. IAIS Guidance papers • Supervision in emerging market economies • Model memorandum of understanding for exchange of information • Fit and proper principles and application • Public disclosure by insurers • Anti-money laundering and combating the financing of terrorism • Solvency control levels • Use of actuaries • Stress testing • Investment risk management IAIS standards setting activities and the Insurance Core Principles

5. IAIS Structure General Meeting Secretariat Budget Committee Executive Committee Secretariat Emerging Markets Committee Working Group on Observership & Membership Issues Task Force on the Core Curriculum Project Dialogue Group Education Subcommittee Task Force on the Revision of the By-laws Technical Committee Insurance Laws, Regulations, Practices Task Force on Assessment & Standards Subcommittee & Implementation of ICPs Investments Subcommittee Financial Conglomerates Subcommittee Subcommittee on Enhanced Disclosure Insurance Fraud Subcommittee Working Group on Electronic Commerce/Internet Solvency & Actuarial Issues Subcommittee Task Force on Enhancing Transparency Accounting Subcommittee & Disclosure in the Reinsurance Sector Reinsurance and Other Forms of Risk Transfer Subcommittee IAIS standards setting activities and the Insurance Core Principles

6. IAIS Standard Setting • Pyramidal approach Core Principles Principles Supervisory Standards Guidance & Issues Papers IAIS standards setting activities and the Insurance Core Principles

7. IAIS Document Adoption Working party Drafting and consultation WP Members Some Observers IAIS Members & Observers Technical and Executive Committees Review and approval IAIS Members & Observers General Meeting Final adoption and publication (hopefully!) √ IAIS standards setting activities and the Insurance Core Principles

8. History of Insurance Core Principles • The first ICPs adopted in October 2000, based on 1997 Insurance supervisory principles • FSAP (the Financial Sector Assessment Program) started in 1999 • Joint Forum comparison of the core principles in banking, insurance and securities sectors in 2001 • FSAP experiences • Revision of ICPs IAIS standards setting activities and the Insurance Core Principles

9. 12 key standards for sound financial systems (by Financial Stability Forum) • Code of Good Practices on Transparency in Monetary and Financial Policies (by IMF) • Core Principles for Systemically Important Payment Systems (by CPSS) • Code of Good Practices in Fiscal Transparency (by IMF) • Recommendations for Securities Settlement Systems (by CPSS/IOSCO) • Special Data Dissemination Standard / General Data Dissemination System (by IMF) • The Forty Recommendations of the FATF/ 8 Special recommendations Against Terrorist Financing (by FATF) • Principles of Corporate Governance (by OECD) • Core Principles for Effective Banking Supervision (by BCBS) • International Accounting Standards (by IASB) • Objectives and Principles of Securities Regulation (by IOSCO) • International Standards on Auditing (by IFAC) • Insurance Core Principles (by IAIS) IAIS standards setting activities and the Insurance Core Principles

10. Insurance Core Principles (ICP) IAIS standards setting activities and the Insurance Core Principles

11. Insurance Core Principles (ICP) IAIS standards setting activities and the Insurance Core Principles

12. Insurance Core Principles (ICP) IAIS standards setting activities and the Insurance Core Principles

13. Implementation of IAIS standards • Training and seminars • Implementation tools • Self assessment • Provision of Technical Assistance • Assisting FSAP IAIS standards setting activities and the Insurance Core Principles

14. Cooperation with others • Regular discussion amongst supervisors • Joint Forum • Financial Stability Forum • International Accounting Standard Board • International Federation of Accountants • International Association of Actuaries • Financial Stability Institute • The World Bank • IMF IAIS standards setting activities and the Insurance Core Principles

15. www.iaisweb.org IAIS Website Address IAIS standards setting activities and the Insurance Core Principles