1 / 10

Financial Sector Assessment Program - Insurance

Financial Sector Assessment Program - Insurance. Inter-American Development Bank. Washington, D.C. November 7, 2005. Nigel Davies. International Monetary Fund. ndavies@imf.org. FSAP - Insurance. IMF / WB Mandate FSAP Assessment Methodology Insurance Results Issues Arising.

kalona
Download Presentation

Financial Sector Assessment Program - Insurance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Sector Assessment Program - Insurance Inter-American Development Bank. Washington, D.C. November 7, 2005. Nigel Davies. International Monetary Fund. ndavies@imf.org

  2. FSAP - Insurance • IMF / WB Mandate • FSAP Assessment Methodology • Insurance Results • Issues Arising

  3. FSAP – InsuranceGeneral Background Interests Economic and Financial Stability Activities Financial Sector Assessment Program Technical Assistance Article IV Consultations Research

  4. Conditions for effective insurance supervision ICP 1 Conditions for effective insurance supervision The supervisory system ICP 2 Supervisory objectives ICP 3 Supervisory authority ICP 4 Supervisory process ICP 5 Supervisory cooperation and information sharing The supervised entity ICP 6 Licensing ICP 7 Suitability of persons ICP 8 Changes in control and portfolio transfers ICP 9 Corporate governance ICP 10 Internal control On-going supervision ICP 11 Market analysis ICP 12 Reporting to supervisors and off-site monitoring ICP 13 On-site inspection ICP 14 Preventive and corrective measures ICP 15 Enforcement or sanctions ICP 16 Winding-up and exit from the market ICP 17 Group-wide supervision Prudential requirements ICP 18 Risk assessment and management ICP 19 Insurance activity ICP 20 Liabilities ICP 21 Investments ICP 22 Derivatives and similar commitments ICP 23 Capital adequacy and solvency Markets and consumers ICP 24 Intermediaries ICP 25 Consumer protection ICP 26 Information, disclosure & transparency towards the market ICP 27 Fraud Anti-money laundering, combating the financing of terrorism ICP 28 Anti-money laundering, combating the financing of terrorism (AML/CFT) Non-Core Principle Related: Technical Notes on relevant major issues. FSAP – InsuranceWhat is assessed?

  5. Higher Degree of Compliance Confidentiality / Info. sharing Changes in Control Financial Reporting Capital Adequacy Liabilities Lower Degree of Compliance Corporate Governance / Internal Controls Assets / Investments Organization of Supervisor Market Conduct FSAP – InsuranceFSAP RESULTS SUMMARY

  6. FSAP – InsuranceFSAP RESULTS - Interpretation • Change in Insurance Core Principles • Trends in compliance over time • Specificity and risk-sensitivity of CPs • Technical Assistance & Article IV are not systematically analyzed.

  7. FSAP – InsuranceFSAP RESULTS – Higher Degree of Compliance • Confidentiality (Impediments to supervisory co-operation?) • Capital Adequacy / Liabilities (Variances in prudential strength?) (Procyclicality?)

  8. FSAP – InsuranceFSAP RESULTS – Lower Degree of Compliance Upward trend • Corporate Governance • Assets / Investments No discernable upward trend • Organization of Supervisor • Market Conduct

  9. FSAP – InsuranceISSUES RAISED Direct Issues • Diversity of national regulations • Areas of supervisory co-operation • Comparative prudential strength of institutions Indirect Issues • Factors affecting market development • Unitary regulatory authorities • Principles-based vs. Rules-based regulation

  10. Issue Developmental > Issues Prudential Strength > Diverse Regulatory > Regimes Conclusion Improve Market Conduct Introduce Quantitative Benchmarks Greater Co-operation, Convergence, less “Confidentiality” FSAP – InsuranceCONCLUSIONS

More Related